THE FINANCIAL OUTLOOK.

Auckland Star, Volume LVII, Issue 143, 18 June 1926, Page 6

THE FINANCIAL OUTLOOK.

"A HARD WINTER."

BUT COUNTRY SOUIH).

SAYS BANKING DIRECTOR,

(By Telegraph.—Special to "Star.")

WELLINGTON, this day

Referring to the financial outlook before the Dominion at the present time Sir Geo. Elliot, chairman of directors of the Bank of New Zealand, gays i n his annual report to shareholders:

Although many of our primary p ro . ducers have had an unprofitable year mainly owing to adverse weather condi! tions, present prices for produce, as a whole, are remunerative to farmers who hold their land at its productive value It is quite a mistake to suppose that many farmers in New Zealand are in difficulties —the percentage is by no means large. Unfortunately, however ■ many of those who are in difficulties ar. returned soldiers, who certainly deserve' a better fate.

Experience has shown that in some districts land has been brought into usethat should have been left in its virgin state, for its actual value is less than the cost of the improvements effected. The Minister of Lands is dealing with the position in regard to land leased, from Government in a manner entirely praiseworthy. A successful farmer himself, his views, which he makes known with refreshing freedom,' must carry weight with farmers.

During the past year there has not been much demand for farm land, and not many would-be buyers are able to pay a reasonable proportion of purchase money in cash.

Except in a few districts, it looks as if the country were in for a hard winter. To aggravate matters, the general strike in Great Britain will doubtless result in a reduction of her purchasing power which must to some extent affect the prices of the season's produce. There is, unfortunately, in the Dominion rather a tendency to take a gloomy view of the situation whenever a setback is experienced, and also a tendency to become extravagant when times are good. Ups and downs are inevitable— it is the average that has to be reckoned with.

To gauge truly the conditions of any country, one must take a long period of time into consideration. In the case of our own country, looking back over the years, one cannot but be deeply impressed with the steady march of progress and prosperity. Although for the moment that march has somewhat slackened, there is not the slightest doubt that in the comparatively not distant future it will be renewed and quickened with fresh life and vigour.