AGRICULTURAL FINANCE.

Auckland Star, Volume LI, Issue 77, 30 March 1920, Page 4

AGRICULTURAL FINANCE.

A WORD Or WARNING. LAPSE OF COMMANDEER ALTERS POSITION. Mr. J. Barugh, chairman of directors of the Farmers' Co-operative Auctioneering Company, voiced a warning to the assembled meeting of shareholders at Hamilton on Saturday, on the danger of the inflation of land and the growing tendency of farmers to rely on securing very liberal financing in connection with their operations. "During the past year/ said the speaker, "owing to the speculative demand for land, prices have jumped considerably, and in my opinion it is doubtful, in many instances whether these high prices can be justified. Shipping difficulties, and the uncertainty as

to the course of markets abroad ' will j undoubtedly have the effect of restricted !rather than increased accommodation. The termination of tbe commandeer on 30th June next is expected to materially affect the finance of the Dominion. I Under the commandeer the Imperial ; Government paid for what they purchased, but in future we shall have to finance our requirements in the old style, and the conditions upon which I have previously remarked are sure to result in the banks pursuing a very conservative policy in making advances | against produce. The burden which Trill be east noon them will be a heavy one, :and it therefore behoves everyone to put their finances on a sound footing . without delay, so as to minimise the j effects of any restrictive policy."