WAIKATO FINANCE

Evening Post, Volume CXVIII, Issue 34, 9 August 1934, Page 16

WAIKATO FINANCE

FARMERS' DISABILITIES

■ A period of difficulty, owing to the unstable nature o£ the dairying industry at present, was reviewed at. the seventh annual meeting at Hamilton on Tuesday of the Finance Corporation of New Zealand, Limited. In his annual report, the chairman, Mr. Dynes Fulton, stated that many fanners who were labouring under heavy financial responsibilities, with considerably reduced returns, found it almost impossible to make capital repayments on loans obtained even four or five years ago. An unsatisfactory feature was the almost entire lack of suitable applications for the largo amount of money the corporation had available. It was due to this fact, continued Mr. Fulton, combined with the small turnover of capital, that there was a reduction of £1100 in the net profit earned during the past season. The total profit for the year was £1813, compared with £2013 the previous year. Nevertheless, the directors felt that it would not be in the best interests of the shareholders: to advance money without a reasonable margin of security, and in their endeavour to pursue a sound policy they had refrained from making advances. The result of this was shown in the smaller amount of[ i interest earned during thf'-season, which' also accounted for the !ower net profit. Provision for b'.d debts had been reduced from £0540 to £6625, and general scocounts had been closed. Reserve had been reduced to £5445. No dividend was declared. ' It was stated by Mr. Fulton that the directors intended making full inquiries into the situation created by the large sum in interest unavoidably owing to preference shareholders.