TO HELP THE FARMER.

Taranaki Daily News, 5 July 1921, Page 8

TO HELP THE FARMER.

APPEAL FOR MONEY. Mr. Taylor, manager of the Farmers’' Co-operative Society, attended the meeting of the Hawera branch of the Farmers’ Union on Saturday and placed some very interesting facts before them with regard to the circumstances which led to the decision of the society to raise a further £50,000 capital by means of fixed deposits. Mr. Taylor explained fully the present financial position of the Co-operative Society. For ordinary trading purposes the society had sufficient to meet its requirements, and, with the large amount in hand, no difficulty was anticipated in meeting the calls on fixed deposits as they became due. Even if the moratorium was not extended they would be able to meet all their liabilities quite easily. Certain arrangements, favorable to the society, had been made for reducing some of the stocks held—in one instance by about £4OOO or £5OOO. He had repeatedly received applications from those who wished to uplift deposits for investment elsewhere. Concerns outside Taranaki had been looking for fresh capital, and large sums of money were thus going out of the district, which ought to be made available to their own farmers. As much as £14,000 had gone in this way from one small town in Taranaki. If this continued he did not know what would happen in six months’ time. It looked as though there would be no money to lend locally, and as though farmers in other parts of New Zealand were going to derive the benefit from Taranaki’s capital. As matters stood the society could not attempt to finance shareholders and they would have to restrict their trading to what they were doing at present. In looking for further deposits they were trying to stop money going out of Taranaki, and to keep it here for use in the district. If the £50,000 asked for went out of the province they could make up their mjnds they would not see it again till due date. Mr. Taylor pointed out that the directors of the society were farmers, deeply interested in the welfare of the district, and would not sanction the present appeal unless they were assured that the security was absolutely sound. Before the depositors could lose a penny all the paid and unpaid share capital and all the stocks would have to go. Mr. Buckeridge said there was any amount of money in New Zealand. At Gisborne, where £75,000 was applied for, £50,000 was subscribed in four hours.

Mr. Taylor emphasised the fact that as far as security was concerned fixed deposits did not differ in the slightest degree from bonds. The latter could be transferred, but w’ith a fixed deposit it was possible to obtain an advance by following a certain procedure. They ranked the same with regard to share capital. Mr. F. Mills said it could be seen that the finances of the Co-operative Society were not strained. He appreciated what had been said about money going out of Taranaki. It was quite on the cards that they would be wanting quite a lot of money before long, and a fair sprinkling of farmers in Taranaki were going to feel the hard tithes. It was a question how many were going to be involved in the troubles of the few. They could not say how far the influence would extend.

Mr. Taylor: Probably in six months’ time trade will be restricted. If they were trading up to the limit and a man came to them to finance him for a herd of cows they could not do it. Before they could lend money they had to get it from someone else. Mr. Mills thought dairy companies were going to have a rather difficult time in settling this season’s accounts until such time as they received returns for next season. The banks were pot in a position to carry them on and lie did not know who was going to do

Mr. Standish said the dairy companies’ pay-outs would be close on 2s. He had not heard of one that was less than Is lOd. If they got Is to carry on out of next season’s pay-out and the balance of -what was due from this

year they would be able to carry on. Mr. Taylor did not think anybody could say what they would get for butterfat during the coming season.

Mr. Standish did not think it would be less than Is Bd.

Mr. Pierce thought it be difficult without the assistance of the banks to pay out even Is. Mr. Taylor: The banks won’t, give it to you. The position is qiiite different to what it was in former years. Mr. Taylor referred to the financing of suppliers by dairy companies as a mistake at the present time. It would be better for them to the money. Mr. Buckeridge: It is done sometimes to keep a supplier. Mr. Mills did not approve of competition in that sense.

Mr. Pierce: There should be no competition between co-operative dairy companies. The trouble was that they had no proper system of comparison in preparing balance-sheets and the man who could shuffle figures the best was the man who came out on top. Mr. Buckeridge said he had long urged that there should be a system of standardisation.

Mr. Mills said he did not know if the Farmers’ Union could be of any help to the Co-operative Society. The society was in a better position than some of those societies which, had no difficulty in getting money. He thought it would be a good thing to keep the money inside Taranaki. Mr. Taylor said that, for nine months the society had not taken a penny at call and it had always kept well below the limit. If the people in Taranaki did not think enough of their own financial concerns to support them farmers would simply have to go without the money.—Star.