AGRICULTURAL BANKS

Evening Post, Volume CIII, Issue 152, 30 June 1922, Page 6

AGRICULTURAL BANKS

Legislation is to be introduced this session of Parliament for the purpose of establishing agricultural banks. Farmers demand them; the Government favours them; and, if the Chairman of the Bank of New Zealand (Mr. George Elliot) is their mouthpiece, the banks see no reason why the experiment should not be tried, "so long as farmers are prepared to shoulder the full responsibility "— to quote Mr. Elliot. There's the rub. Are farmers willing and able to do that? We are not quite sure .that they are willing; although there are many men of capacity among them who should be able, from the experience they have had of direction of co-operative concerns rendering services very similar to those expected of agricultural banks. No doubt, such men would not hesitate to shoulder the full responsibilities, of such banks. But even they will readily admit, from the first-hand knowledge they have gained, that statute laws cannot alter economic laws—and it is through the operation of the latter, to a very large extent, that so many farmers are experiencing great t difficulties at the- present time. But it will not be forgotten that those staunch supporters of the proposed export dairy produce pool were in perfect accord that the Government should financially guarantee an enterprise that was to have been managed by a limited liability company owned exclusively by farmers, and empowered by law to make levies, compel pooling, and control sales. If agricultural banks are fo be established primarily in their interests, then farmers should primarily bear all the ' burdens, financial and otherwise, connected therewith. No matter what farmers' views on responsibility may be, the Government will, surely, be chary in incurring any further financial obligations or sacrificing any sources of revenue directly in the interests of one section of the community, important as that section may be. ,