The Temuka Leader SATURDAY, MARCH 13, 1886. THE DAIRY FACTORIES.

Temuka Leader, Issue 1479, 13 March 1886, Page 2

The Temuka Leader SATURDAY, MARCH 13, 1886. THE DAIRY FACTORIES.

We regret to notice that there exists at present some little discontent with regard to oar dairy factories. It is only nature 1 , perhaps, that this feeling should exist just now, when the price of batter has risen so high that it would pay better to make that article than send the milk to the factory. But the milk suppliers ought not to look at it in that way. They ought to remember that it is the factories that bare raised the price of butter. If the factories did not exist and all the milk now sent to them were utilised to produce butter, the price would be much loner than it is at present. The factories hare therefore done an immense amount of good to the milk producers who are too far away to send their milk to the factory, as well as to those who live near enough to send it. They have been the cause of securing to the farmers everywhere in the district a belter return from their cows, and in these hard times, when everything else is so cheap, those ifho own cows ought to exercise great caution in their dealings with the factories. To kill the factories is to kill the goose that lays the golden egge. To get threepence per gallon all the year round for milk is equal to getting ninepence per pound for butter, aud past experience will tell any one that that is a much higher price than used to be got in the past. When factories were at first suggested people who thought they knew everything about cows held that nothing less than fonrpence per gallon would pay, and many of them used to say they would rather feed calves with it than supply it even at that price. Those who have tried it, however, have found that threepence halfpenny will pay well, and as proof of it we have only to point out that land in the neighborhood of the factories fit for dairy purposes is let at a higher rental than in any other part of the district. We think these factories were established at a very opportune lime, and that they have been a great blessing to the district. We are inclined to think they have improved the position of many who have supplied ihem with milk. On these grounds we ask the people to be careful in their dealings with the factories. It is right and proper for persons who have cause for complaint to go straight to the Directors and represent their grievances to them, bnt it is the height of folly for such people to cease sending their milk because some trifling thing has annoyed them. Some of the milk-suppliers at Temuka evidently had a grievance, and they at once ceased to supply milk. Mr Oldfield took a more sensible and business-like view of the case. He called a meeting of the discontented together, and after talking the matter over they resolved to send a deputation to wait upon the Directors, with the view of arranging matters amicably. The interview took place last Tuesday, and from all we hear it was mutually satisfactory. Now that is the proper way to go to work. The Directors are most anxious that the milk-suppliers should be satisfied, but they cannot give them too high a price for their milk, because that would result in bursting them up altogether. Another thing milk-suppliers ought not to forget is that while the majority of the shares are held by persons who never did and never will sell milk to the factory, no dividend has as yet been declared. Now these shareholders have actually lent their money without interest to the factory for the last three years, so as to provide a market for the farmers’ milk, and yet we are afraid from what we have heard some of those benefited do not thank them for it. Not one of the shareholders has so far complained of no dividend being dev dared ; they all seem to be satisfied so long as the institution is paying. Now, supposing a non-supplier of milk had ten shares in the factory, does he not lose £3 15s a year, reckoning the the interest at per cent, ibis is the sacrifices that many shareholders are making to keep the factory going, and ibe milk-producers ought to think of this before withdrawing from it just now, because the price of butter is up, The fact is, we do not think people are making proper use of the factories here. In other places milk-suppliers have got into the way of keeping the factories going all the year round, by thpjp pattle, and by having some of them calying whep the others are running dry. This is whajt 1 sughf to be done here, and pOßßfbly it '

will be done too, when the people will get belter accustomed to the factory system.

STATE BANK. Mr Turnbull, in bis speech at limaju, said be would not be in favor of a National Bank of Issue, because no one would take its notes. The Hon. Robert Stout, at Christchurch, said a National Bank of Issue was utter nonsense, as the paper money thus issued would decrease in value to naif price. We are not sorry for this, because it may possibly lead people to see that a National Bank of Issue is not what is wanted, but « Slate Bank, transacting business on the same lines as the present Banks. We hare all along held that a National Bank of Issue would not do much good, but people have taken it up in preference to our proposal just because it happened to have been advocated by persons holding high positions. It is possible now that these people will open their eyes, and realise that they must come round to our scheme in the end. The fact is, no other scheme is feasible, and sooner or later our proposal must be adopted. But, though we have never given advocacy to a National Bank of Issue, we have never condemned it, because we realised in it the first step towards establishing what the colony really wants, and must have. The Hon. Mr Bathgate does not regard it as any more than this. What he says is, “ Let us have the Bank of Issue first, and the other will follow.” There is no doubt but that Mr Bathgate is to a certain extent right, if the people could only understand him, but they will not, or they cannot. To a«y that the notes of a Bank of Issue would not pass current is nonsense. It betrays thick-headed ignorance, or downright impudence, on the part of those who make such assertions. Mr Turnbull suggests that we should borrow L 5,000,000, and Mr Stout is suspected of favoring a loan of £10,000,000. We ask both of them, What have they to offer as security for this enormous loan ? They must answer, “ The security of the colony.” Then, if the people of England lend us £10,000,000 on the security of the colony, surely the people of New Zealand themselves would be ready to accept paper to the extent of £1,000,000, having the same security. The debentures we issue in England are only pieces of paper, and the notes a Bank ot Issue would circulate would be paper also. Mr Stout asked, in Christchurch, “What is a note but a promise to pay?” We ask him, “ What is a debenture but a promise to pay also 7” The only difference is that on the debentures we would have to pay interest, while no interest would be payable on the notes. Under existing circumstances we pay the Banks from 8 to 10 per cent, interest on these notes. There is no man who will stand up and say that to issue paper money is not the prerogative of the Crown. Now, what do we do ? The power to issue notes belongs, without doubt, to the Government ; but the Government have handed this power over to the Banks. In that way, the Government lend the Banks about £1,000,000 a year, and these Banks lend this money to the people at from 8 to 10 per cent, The Government go to England and borrow money there on promissory notes, which they call debentures, and they pay 4 per cent, for this ; the Banks of this colony issue to tho people promissory notes, which they call bank notes, and they charge interest at the rate of 9 per cent. The difference comes to this: We give Englishmen pieces of paper and pay them 4 per cent, interest for taking them ; we get from the New Zealand Banks pieces of paper and pay them 9 per cent, for them. Therefore, whether we give or we get it is all the same—we must pay interest. And Messrs Turnbull and Stout would perpetuate this j Are they so thick in the skull that they cannot see it 7

POLITICAL RUMORS, Most of ihe Ministers are now in Wellington, nnd the result is that Ihe literary quidnuncs are at their wits* end to see what is going to happen. The air is thick with rumors. One correspondent has it that the Government have altogether altered their programme. They have no intention of appealing to the country ; they will not ask for more than a one apd a-balf million loan, and, as this is bound to be granted to them, they will be able to weather through the session, and avert a dissolution until next year, when Parliament will dissolve by effluxion of time. Another correspondent says there it not a word of truth in this, apd this complicates matters. The probabilities are in favor of the first statement, however 5 and, if the Ministry adopt it, there is every prospect of their being able to retain their seats. Another rumor says that Mr Stout thinks of resigning, Just like him ! When the previous Government ot which he was a member got into shallow water he resigned, and it is just possible that, as the present Ministry is drawing near to the end of their tether, he thinks of doing the same thing. He will ruin himself politically if he does.