8.—9

Since the improvement in wool-prices pastoralists have rapidly overtaken a good deal of the arrears of the last few years. Realizing that sheep-farmers will in most cases no longer require concessions, every effort is being made by the Public Trustee to have all arrears liquidated with as little delay as possible. As he is usually acting in a fiduciary capacity, in normal conditions it is the strict duty of the Public Trustee to see that mortgagors, purchasers, tenants, and others strictly and faithfully fulfil their engagements. In a time of financial distress, however, from the interdependence of the various financial and commercial interests and the interconnection of affairs economic and otherwise, it is usually not only useless to take extreme measures, but to do so on a large scale would probably accentuate the situation and do considerably more harm than good. It is gratifying to be able to record that, so far as the sheep-farmers are concerned at any rate, there has been a considerable reduction in the arrears of interest, rent, and overdue purchase-money. As to the other farming interests, there has been, too, a marked improvement, but, of course, the condition of the dairy-farmer has not been so satisfactory as that of the pastoralist. Often he is struggling under a heavy financial burden, for dairying-lands were bought at exorbitant prices during the boom, whilst the general conditions of the industry are different. New Zealand dairy-produce has to contend with ever-increasing competition not only from the older dairying countries such as Denmark, but also from recent rivals such as Argentine and Siberia. It is hoped by the establishment of the export-control scheme to mitigate somewhat the evils of the present fluctuations, but there are indications that the dairying market will nevertheless present serious problems at no distant date. As to prices, economic laws are ever operating, high prices attracting fresh supplies until lower values prevail. To meet the situation and to provide for the burdens of those engaged in the industry the New Zealand dairy holdings will have to be subdivided, and these reduced areas more intensively worked, whilst stricter attention will have to be paid to herd-testing and other improvements which will increase the yield and reduce the cost of production wherever possible. In the Office business these factors are being constantly borne in mind, for the Public Trustee controls a very large number of estates vitally interested in the dairying industry. In suitable cases subdivision and improvements are carefully considered. Not only does this benefit: the estates where dairying is being actively carried on by the Public Trustee, but it assists realization and ensures to a greater degree the possibility of tenants, purchasers, and mortgagors engaged in dairying pursuits being able to fulfil their financial obligations. The improvement in the financial and commercial outlook has been reflected in the realization of assets during the past year, and notably in respect to land, the market for which has been so depressed since the slump set in. The recovery would have been more marked but for the uncertainty in the minds of likely purchasers as to the action which would be taken in reference to the moratorium, and, even when the decision of the Legislature was made known, the effect which the sweeping-away of the statutory protection would have on the money-market. Within the next few months the bulk of mortgagors and purchasers should have completed the readjustment of their finances, so that a period of satisfactory realization may be confidently looked forward to during the present year. It is to be hoped, however, that in times of prosperity in the future there will not be the widespread speculation in land at highly inflated values which so characterized the period 1916-20 and brought such disastrous results. New Business. 47, Glowing testimony to the growing confidence in the Office is once more borne by the large increase in the number and value of new estates reported for administration during the past year. The Office methods, its machinery, and the facilities it offers make a strong appeal to the business man, and consequently there are numbers of prominent citizens who entrust the administration of their estates to the Public Trustee. A pleasing feature of the Office operations is the number of persons who have had business dealings with the Public Trustee in the administration of the estates

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