IN THE WAIKATO.

Taranaki Daily News, 17 April 1922, Page 6

IN THE WAIKATO.

SLUMP CAUSES LOSS. PERIOD OF CONVALESCENCE. In moving the adoption of the report and balance sheet of the Farmers’ Cooperative Auctioneering Company at Hamilton, on Saturday, Mr, J. Barugh, the chairman of directors, while -congratulating the shareholders on the company’s sound financial position, regretted that owing to the slump in stock values the profit and loss account revealed a loss of £1383 for the year, caused by bad debts, depreciation in value of stock, and a general falling off in the purchasing power of the farmer, but, taking all things into consideration, the chairman thought the company was to be congratulated on coming through the bad times as well as it did.

The directors could not recommend the payment of a dividend on ordinary shares, but by transferring from the reserve account the sum of £16,581 they had been able to cover the loss referred to, and to pay interest on the preference shares. Capital account showed that £478,672 had been paid up, leaving £17'8,294 uncalled. Reserve account showed £47,000, as against £62,983 last year. Overdraft at the Bank of New Zealand amounted to £47,124.

Referring to prices, the chairman said that, although it was unpleasant to dwell upon losses, they must recognise the fact that prices of commodities were far too high, and it was better for the community as a whole that they should be put on a far more reasonable plane as far as prices are concerned, and thus stimulate a more healthy demand. He was of the opinion that prices of many lines would still alter in favor of buyers, although the reductions would be more gradual. ' Viewing this from a farmer’s point or view it would undoubtedly be a blessing in disguise. After speaking of the slump in live stock, and the improvement in the wool market during the past year, Mr. Barugh went on to speak of the sensational drop in the price of dairy produce a few months back. He said it was now manifest that the prices had been forced dowm in London to tfie great loss of the producers in the Sbuthern Hemisphere. If those violent fluctuations were to cease the producers themselves must find a remedy, and until some definite control was established in London the New Zealand dairy farmers would not reap the full reward of their work. Commenting on the meat pool, Mr. Barugh said: “The scheme [ must ultimately justify itself, and will ' enable the export meat producers of the Dominion to speak, through one central authority, in any action which may be necessary to protect and promote their interests. Better returns for the producers of meat for export in New Zealand will mean more money coming into the country and in circulation, with the consequent result that the spending power o-f the people, especially that of the farmers, will be increased, and trade generally improved.” On the question of land values Mr. Barugh said the remedy for our present ills appeared to be reduction in the area of land held to a size that can be farmed to a maximum of production, and industry, intelligence, and thrift on the part of the farmer. Probably the next six months would be the most trying time the Waikato district had experienced since the early nineties, but the great majority of settlers would weather the storm, shorn in many cases of much of their capital, but still well able to carry on.

“The prospect for the future,” said the chairman, “depends on the efforts made to counteract the depression general troughout the world. We in Few Zealand are dependent on the British markets, and they in turn on the Continental and overseas. To quote from a White Paper issued in England: "Labor has been accustomed to high wages easily earned —-more easily spent. Men and women, boys and girls, have all got used to big money out of all proportion to the slight effort necessary to obtain it. The economic adjustment of the past year has created a number of discontented people who do not yet realise that they have been living in an artificial wage market, and resent the changed conditions of supply and demand, work, and pay. “We cannot hope to recover our prewar position suddenly. It must necessarily be a long and painful process. On the economic side the property and productive material destroyeG during the war must be replaced. On the human side the working man power must be made good. Both of these results depend upon those who are engaged in the work of the world settling down to that work with determination, efficiency, and self-sacrifice.” “With trade in its present condition we are bound to look forward to a lean year, and there may possibly be further losses in front of us, though on this point I am very hopeful. It ean hardly be expected that the convalescence of our silk commerce can be rapid, but we can, I think, with confidence look forward to it being steady. Our attitude, therefore, must be one of extreme caution, and I counsel everyone to face the position with courage, cut out every needless expense, and to work within the compass of their financial capacity. Those unable to da so must of necessity face the inevitable, but, as I have previously remarked, the great majority ean win through. “I notice that the Prime Minister, speaking at Kawakawa recently, stated that ‘in future there must be more co-operation in spirit.’• I commend this remark to you all. but go further and unhesitatingly say that farmers should give more practical and loyal support to their own co-operative companies. Such support will benefit them not only individually but collectively.”—Auckland Star.