FINANCIAL CONDITIONS

Hawera Star, Volume XLVIII, 18 September 1924, Page 7

FINANCIAL CONDITIONS

COMMENTS BY PUBLIC TRUSTEE,

The following'comment on the financial conditions of the Dominion is taken from the annual report of the Public Trustee: . / The business of the office is so closely associated with the life of the community that the financial and commercial outlook of the Dominion affects its operations. During the past few years the financial and general depression has largely increased the difficulties in many of the estates, especially those having agricultural, dairying, and pastoral interests, or interests in commercial concerns of various kinds.

The fall in the price of our - staple products has affected not only those estates where farming operations were being actively carried on, but also those cases where rural lands had been sold ] during the boom and a considerable portion of. the purchase-money remained outstanding. In a very large number of instances farming properties had been sold during .the time of prosperity at highly inflated prices, with small deposits, so that when the drop in the price of primary products came the purchasers were often so financially embarrassed that they .could not fulfil , their obligations For the same reasons many tenants and mortgagors, too, were seriously affected. The business of the Office is so extensive and its operations iso- far- ' reaching that in forming its policy and in conducting its dealings it must pay careful regard to the delicate mechanism of the existing economic system. In the recent unprecedented financial and industrial crisis, which was felt throughout this Dominion in common with other countries of the world, the office endeavoured to take into account all distress. Amongst these, psychological influences play so important a part in the alternating phases of animated and depressed industrial and commercial conditions that anything like extensive proceedings against those in default would have affected the spirit of the community. Accordingly, in dealing with mortgagors and others unable to carry out their financial engagements an endeavour was made to mitigate to some extent the financial embarrassment so far as such a course could be pursued without adversely affecting the interests of the Office

clients. » All cast's of arrears have been closely and frequently reviewed, and drastic action has been taken only in those cases where the interests of the estate would have suffered had this not been done. Wherever purchasers and others have been making a genuine .attempt to fulfil their obligations, and there has been a reasonable prospect of their doing so, provided the interests of clients were not Jikeiy to suffer thereby, extensions of time and similar concessions have been granted. This has been of considerable assistance to a large number of persons, and has tided them oyer their financial difficulties. The Office exercised strictest watchfulness and considered each individual case on its merits.

The services of the Office Rangers, who are officers qualified by experience and training to give useful advice in fanning operations, were constantly used. In leference to shares, debentures, and financial and commercial interests generally the services of the Financial Adviser were also freely used. The advice of these experts in reference to the problems which constantly arise has also been freely placed at the disposal of beneficiaries and other clients, for it was felt that in such an abnormal crisis effort should be made in every direction to minimise its effect and to protect, as far as possible, the interests of those whose affairs the Public Trustee controlled.

At the commencement of the present financial year trading and general conditions had largely improved, but it was difficult to forecast the position or to outline a policy of administration for farming estates, seeing that in New Zealand we rely to such an extent on the prices which our primary products ieali.se overseas. The unfavourable weather during the winter and the early spring, followed by severe drought in many parts of the Dominion, again adversely affected the farming interests. Nevertheless, whilst the prices of staple products remain, satisfactory ' those farmers who have not purchased at highly inflated prices are able to fulfil their obligations. The rise in the price or wool hats enabled a considerable portion of the arrears of interest to be paid to the estates,, and should the improvement be maintained the bulk of what has been outstanding should soon be recovered.