THE Temuka Leader. TUESDAY, JULY 18, 1893. THE N.Z. FARMERS’ CO-OPERATIVE ASSOCIATION.

Temuka Leader, Issue 2530, 18 July 1893, Page 2

THE Temuka Leader. T UESDAY, JULY 18, 1893. THE N.Z. FARMERS’ CO-OPERA-TIVE ASSOCIATION.

In last Saturday’s issue of the Press there appears an article, which in any other community would have shaken the N.F. Farmers’ Co-operative to its foundation. The Press says : It will be seen from the published balance-sheet that the sum of £30,297 18s 8d is deposited with them, and that £17,768 5s 6d of shareholders’ and customers’ money is also a liabilty. In other words the sum of £54,066 4 s 2d of borrowed money is being used in the same manner as if it were capital. The total liabilities are £191,658 14s 2d, with a paid-up capital of £38,407, or about 4s in the £. Out of the paid-up capital of £38,407, there is sunk in buildings the sum of £21,672 4s 4d, and at the date of the balance-sheet only £589 5s 5d appeared as cash in hand to meet the possible demands of depositors whose deposits amounts to £36,297 18s Bd.”

This is the weakest position of any financial concern we have ever heard of, but the directors do not seem to be able te realise it. The annual meeting of directors was held last Saturday, and all the chairman said in reply to this was ; “My attention has’ been drawn this morning to a leading article in to-day’s Press, the object of which appears to be to damage the Association in the eyes of shareholders and depositors, but I think there is little or no necessity for me to answer this article further than to draw your attention to article No. 73. in which the borrowing powers of the Associaiion are limited to one-half of our subscribed capital Our depositors are, I believe, without exception, our own shareholders, and the standing of our directory is a sufficient guarantee againstany overtrading such as is feared by the Press.” This is certainly a feeble reply. To say that the Press, which is the organ of the largo laud-owners, desires to damage them is a very weak reply to a terrible indictment. On the contrary, the Press advised them to strengthen their position, and if they had a grain of sense they would do so, for the slightest wind would make them topple over like a house of cards. They have only £38,407 paid up capital, and of that £21,672 is sunk in buildings, leaving only £16,735 to trade with, yet the chairman tells us their turnover last year was £930,000. This is financial jugglery of a moat extraordinary nature, but it cannot last long.