DAIRY PRODUCE

Ashburton Guardian, Volume XLVI, Issue 10704, 30 March 1926, Page 7

DAIRY PRODUCE

CREDITS IN LONDON.

TOOLEY STREET ASSURANCES

WELLINGTON, March 29. Definite assurances have been given in writing by all the distributors in Tooley Street handling New Zealand dairy produce upon tiie London mar- • ket that they will establish letters of credit in the name of the Dairy Control Board under its policy to be initiated in August next. Similar assurances are now being secured from New Zealand firms engaged in the same business whose head offices are in Now Zealand. This information was forwarded to the Dairy Board by a. cablegram from the London agency, stating that there, had been obtained in writing from importers their willingness to establish credits in the name of the Board. Then followed the names of the firms concerned, as follow: —Lovell and Christmas, Ltd., A’. J. Mills and Co.. Ltd., R. and W. Davidson, Ltd., Weddel’s, Ltd., J. and! E. Lonsdale, Ltd.. Foley Bros., Ltd., Anglo-Continental Produce Company, Ltd., Andrew Clements and Sons, Ltd., G. Gillanders, Oetzes and Gerritzen, Ltd., Co-opera-tive Marketing Association, Ltd.. Page and Son, Ltd., A. <C. Rawson, Henry Lane and Co., Ltd., Armour and Sons, Ltd., National Mortgage and Agency Company, Ltd., New Zealand Loan and Mercantile Agency, Ltd., Dalgety and Co., Ltd. In the course of a long comment on this information, Mr W. Grounds, chairman of the Board, says: “Everyone with an intimate knowledge of the inner working of the export dairy prodee trade has known throughout this controversy that there would be no difficulty" about finance under the Board’s policy. This we have asserted repeatedly, but, notwithstanding, it lias remained the centre point of criticism and misrepresentation. That Tooley Street would go back on assurances that had l been given was unthinkable, as events have once again proved that Tooley Street needs to be protected from its so-called friends. The request to London for confirmation of the assurances resulted in a cablegram being received stating that all the leading firms had renewed that assurance in writing. Firms with their headquarters in New Zealand are doing likewise. We shall possibly now be criticised for not having done this before, to which we answer, in anticipation, that there has never been any doubt upon the point, and we were not disposed to indicate any ouestion in our mind 1 of the honourable word of our distributive associates.

“ Critics have enjoyed conjuring up the bogey which, they have played with almost affectionately, and which has again proved them to he wrong. We leave them with their pleasure, as there can be few left for them. Suffice it here to say that Tooley Street is plainly aware of the advantages our system has to offer to the legitimate distributor. That supplies shall he guaranteed to them in accordance with their distributive outlets is all they desire. The difficulty under existing circumstances to secure these has been their greatest trouble. F.o.b. buying has made the trade more speculative than ever. Serious disturbances to long-established connection have been experienced, so that in the end some of our best distributors might have been forced to look for supplies from elsewhere. There was far more danger to the industry from this than any prospect of the merchants being supplied from other countries as a result of the Board’s policy. We know that in this connection the only way to preserve our interests in any competition with other countries is to be prepared to give better value and service for the money than any of them.”