The Press SATURDAY, AUGUST 18, 1934. A Stock Firm's Review

Press, Volume LXX, Issue 21246, 18 August 1934, Page 14

The Press SATURDAY, AUGUST 18, 1934. A Stock Firm's Review

t We print this morning a consider-; able part of the annual review is- j sued by Pyne, Gould, Guinness, i Ltd., which as usual covers in great; detail and with much valuable comment the history of the agricultural and pastoral industries and their markets during the past season. The public has probably forgotten what the farmer ruefully remembers, that although Canterbury is generally better off than a year ago, recovery was retarded by the spite of the weather. Crops were severely damaged or lost, orchards suffered, and first want of rain and later too much rain badly affected the lamb export trade. Still, these setbacks and the grave depression of dairy prices have not prevented the province from moving through a markedly better season to a better position, and one which still on the [ whole promises improvement, especially as a longer view is taken. This was due, of course, to the remarkable spring in wool prices and to the less remarkable but very welcome improvement in meat j prices. As for the early future, it | is encouraging to note that Messrs j Pyne. Gould, Guinness expect woolduring the coming season not to slip ; to any disturbing extent. They take into consideration the re-1 stricted buying power and the dc- i liberately contracted buying policy: of Germany, France, and Italy, and the doubtful position of Japan: but although this leaves Great Britain; alone as a customer certain to buy J largely, the review points to the re- j assuring fact that the market is not 1 embarrassed by accumulated stocks.! Even with nearly every nation pur- j suing a policy of self-sufficiency, demand should eat up supply; and, the major competitive influence ot; Bradford should keep prices at a | profitable level, little below last sea- j sons. The outlook is brightened.! also, by the indications, in Canterbury. of heavier fleeces and of the. clip's coming forward in excellent condition. As for meat, the review does not venture very positive opin- ; ions about prices; but on the quctn question the view is expressed that, while temporary restrictions may be imposed, permanent restriction i>: unlikely, probably this is true. But, New Zealand can at least do nothing j wiser than try to make it true Dy j " producing the highest quality "lambs" to stimulate and extend demand and keep prices profitableTo the dairying industry the review offers sound advice and longdistance hope. The present situation is anxious, even critical; but it is sense that goes to the centre of New Zealand's trouble to point out that only one dairy cow in six or seven is regularly tested, and that, although it may take " some years to j - make [dairy products] of such ex- i " cellent quality that we can defy "competition and find a payable " market for all we export," this must be the guiding principle of the industry, whatever temporary ; measures of relief are followed. Three general reasons for c:-f.d-:r.:= . are touched on in the review: tnej probability of low Interest rates ruling for some time and keeping the costs of farm finance down; the stability of the present exchange! rates; and the irr preventer.? in Great ! ' Britain's economic cortdttior.. , which there may be expected a rat•urai expanses ir. the demand rcr ' Jie-R* Zealand's expert products. But | tc this' last there is attached the pru- ■ dent saving clause:" Much wiilneces- ; •* jscsE? depend on the British Gov- " ■*errLcerf • decision re preferential • "Z&3 to ti"X* Dominions ss agaiaar. the fnmp kcjjcrter.** At; . Sjas scenwHcS, tiias ac p.—es cost di-• rvrlj ta Mr Elii-.t * policy of| rrjastaasrre rMtncyn plus a levy.j jrrtfc to v.e Ddsbuobs. i ;r. seat —pert.-:: but it may extend farther. Finally, the attention of ; ■s'/'-jry farm sr. and of investors snc of the Gc-.-srr.~?r.t. should be serial/ gr/ea to the interesting and constructive proposal set out in tcs 'review for the use of mortgage' • bonds in farm Saaa.cs. Lnquesziir.- ; ably the advice is sound that the i farmer should base his use of cor- ; rowed money on the amortising ' principle; not perhaps unquestionably, but at least arguably, tie ad- [ vantages of this principle ccuad no. 'be fully enjoyed without the dei veloprr.ent of the mortgage bond sys- : teta described in the review. It z— ay ce said, Quite soberly, tha. > r."-jc z —w sals open up tee possibility o. i rev ;-lutionary but wholesome ref construction of the system of bor- , reiving and investment on farm land ' security: and it will be a misfortune ;if they are held suspect because they involve some difficulties and iaI novations.