RURAL AFFAIRS.

Hawera Star, Volume XLVIII, 28 November 1924, Page 5

RURAL AFFAIRS.

HOPEFUL /OUTLOOK. THE EXCHANGE PROBLEM. (BY TELEGRAPH —PRESS ASSOCIATION. AUCKLAND, Nov. 26. / “I do not wish to discuss public questions just at present,’’ said the Prime Minister with a deprecatory smile to-day. “You know I am supposed to be having a rest and change away from all that pother.” Mr. Massey chatted informally, however, on the hopeful complexion which the season and markets had put on rural affairs, saying that the result of the opening wool sales had put sheep farmers throughout the country in great heart. “I was chaffing one farmer a boat, the wealth coming to him from his wool clip,”'said Mr. Massey, “but he reminded me that four years ago. he had to quit it at s£-d per lb. This year’s result would only help to recoup him for that. It must not be forgotten that good years have to be set against bad before deciding that the sheep farmer is making his fortune.” The season had also opened well m the production of butter-fat, and the markets promised well for lamb, mutton, and wheat. Farmers would need it all, however. The great difficulty on the land to-day was finance. The exchange position complicated matters by tying up large sums in London. It was a very difficult problem and a solution was hard to find. Matters were not helped by the large account New Zealand was running with Australia. About a million pounds had to be paid for wheat from the Commonwealth, apart from importations of coalj oats, chaff, and the usual produce lines. So far as the Government was concerned the revenue was keeping up well. Advances to settlers were being proceeded with at a brisk -rate; in fact, the Department had its hands full with business. A proportion of the sums lent were for paying off mortgages affected by the moratorium, but not all, by any means. The loan of five millions »pised in London for advances was available, of course, but a good deal would be lost by its transfer to New Zealand at the present time. The Advances Department had been empowered to draw on the loan, hut so far as he knew this lia£ ncyb yet been necessary. The sum of £1,125,000, lent by the Bank of New Zealand had adde'd to the funds available locally.