FARMERS' CO-OPERATIVE ASSOCIATION.

Press, Volume LVIII, Issue 11010, 6 July 1901, Page 5

FARMERS' CO-OPERATIVE ASSOCIATION.

TO THB EDITOR Qt THB VBXSB. Sir,—TWa institution being about to pay another large dividend, viz., 9£ per cent., it might be as wed to point out to the shareiold srs thafc the proposed amount for addition to the reserve is less by £1000 than last year, while no provision is made for increasing the special contingency fund. Possibly I am mistaken, but I feel justified in saying that the majority of shareholders •would prefer a smaller dividend, say, 7£ or 8 -per cent, and a larger amount placed to the reserve fund, such fund to be accessible, for instance .Government securities, so that, should occasion arise, relief cotf.d oe immediately obtained. At present some £50,000 stands to credit of current account depositors, but ■suppose these amounts shoald be withdrawn, the institution would lave to depend on the bank, and, say the fixed depositors began to gst uneasy, further application to the bank would be met with difficulty. ■ , „ These large dividends are all very well

ae long as every precaution -has been taken to meet emergemcies, but it_ is_as , well to bear in mind thai stronger instkutio&s tliaj) tills hare-got into tight earners, and have been unable to extricate themselves.

I Anotfcer question that requires ■ looking into is the everlasting;. increasing of the capital. The balance-sheet shows far more oaah on hard than will be absorbed by the dividend,• then I ask what use will the additional £4500 be pat to? Surely, it is time •Wβ rested on our oars for-afew years. We oannot be wanting larger profite* fchaa we are getting; .that \»ihy incur further responsibilities. If the growing Tvants of the farming community warrants it, better, I should say, that another institution on similar lines be started and give a show.—Yours, etc., - C.OX>.P. ("C!»ution"= on our platform).