U HELP THE FARMS

Hawera & Normanby Star, Volume XLI, Issue XLI, 4 July 1921, Page 5

U HELP THE FARMS

APPEAL FOR MONEY.

Mr.'vTaylor, manager of the FarmenP Co-operative Society, attended th» meeting of the Hawera branch of thm

Farmers' Union on Saturday and pltwfed. some very interring'facts before them.

with Regard to the circumstances which. led to the decision of the society-"4* raise a further £50,0Q0 capital by means of fixed deposits. Mf. Taylor explained fully the present financial ' position _of the Co-operative Society., For ordinary trading purposes the* society had sufficient to meet its requirements and, with the large amount in hand, no difficulty was anticipated in imeeting the calls 6n fixed deposits ,' as they became due. Even if the moratorium was not extended•they wouid be able to meet all their liabilities - quite •easily.'-' Certain 'arrangements.. favourable to the society, had been made-for reducing some of the stock* held, in one instance by about £400fr or £5000. He had repeatedly receded ~ applications from those who wished t* ' uplift deposits for inve?tment elsewhere Concerns outside Taranaki had beefe ■, looking.-.for-fresh capital and large ' ' sums of money were thus going out of the district which ought to be made- * available to their own farmers A* much as £14,000 had gone m the way rrqm one small town in Taranaki If this^ continued he did not know what, - would (happen-in six months' time It looked as/.though there would be no v money to lend locally and as thougfc. ' • farmers in other parts of New Zealand . / were goins to derive the benefit from '\ laranaki s capital. As matters stood! \ • the society could ffot attempt to finance shareholder> and they would have' to < restrict their trading to what they were ; doing at present. In looking for further V?' denosits they were trying to ston money " , ' f^ <»to f Taranaki and to"k«en !5 * ' herd for use in the district. If tfift '<' £50,000 asked for -went out of ft* province^ they coiild nuake up their minds that they would not see it a E ain/ >^ J }J *d?u c- m' Taylor Pointed out , . tftat th^ directors of the society weir» •""*' farmers deeply interested in the welfare of the district, and would not sanction the present appeal unless they we*<* assured that the 'security was abso- -» lutely sound. Before the denne'.tors. > could lose a penny all the paid and impaidshare capital and ali the stocks ... would have to gp. t Mr. Buckeridge sard there was any ' \ amount of money in New Zealand At •• f lsbo"ie,jjAhere £75.-000-was applied for, £50,000 was subscribed in four \!t\ hours. v , •, Mr. Taylor emphasised the fact that '• * as far as_ security was concerned fi*ed deposits d:d not differ in the slightest degree from 'bond,. The • latter conlit i be transferred but with a fixed deposit ' < it was possible to obtain an advance: v * by following a certain procedure They , ranked the same with regard to share ' " capital. .; ,' | Mr. F.xMills said it could be seen that . the hnanees of the Co-operative Society- ' v were not strained. He appreciated what .., iiad been sa:d about money going out of ' Jaranaki. It was quite on the caitlß. that they would be wanting quite m^ > * lot of money before long, and a fair \ 'z sprmkhne of farmers in Taranaki were- -* going to feel the ham times. It was a y\* ouestion how many were eoin^ to'be1- 5 myolved in the troubles of the few ' r '" 1 hey could not sa y Mow far the influl ' r/ enoe.would extend , |^' Mr. Twlor: Probably in s"x months* /;'« time ; trade ..will be, restricted If. they * were trading up to the linut and a man '- ' came to them to finance him for ft herd // of, cows they could not do \ it<^ vßefprw they could lend money they hawto get it from someone else. Mr^" Mills thought dairy companies were '"going to hnve a rather difficult - time in, settling,this season's account* *" Until such- time aa they receiyed returns for next season. Tie batite WW» not in a position-to carry^thel^ v>*t and * do i? ld ll6t kn° W W^ 'W*3 i9L '4'« "%,'■■■ Stiwidiah said the daJK mm ,^r balance or what was due' from this year i \ v' 2.-. beaacb ]c to cdt'r^ v m-u^'-S^xJll^*- 1* would be difff- --Ti "rtt without the assistance of the bank* to l>ay out even Is; • ♦^ r# Tafc T^ s -ban*» won't give ii . £ tV, V** V™}*™* is quite different to what it was all fSr-mer years. Mr ' Taylor referred to the financing of suril ' Pliers by dairy companies as a mistake 1 for^hpff+A? tm£ lt WOuld to »r mto kee P the money ■ Mr. Buckeridge: It is done sometimes to keep a supplier. Mr. MilV did not approve of competition in that sense Mr, Pierce:. There should be no competition between co-operative dairy companies. The trouble was that they had ' ■, no proper system of comparison^ preparmg balance-sheets and the man wno> could shuffle figures the best was X man who came out on too nr5 ri + ? u«k«*id 2e «aid* he had long;

+h i? lHs sa£ he dfd not know if i Sf ? rmfrs^ Vmon' couia of any hel p+ to the Co-operative Society tSS ' sonf VIZ m a bet^r position than ' S^ f+ *hose «>cneties which" bad no difficulty m getting money. He thought / o^ll and it hod always .kept wpII belo-r ' dM IT*'*! -If, the Pe°ple in Taranaki fin,r.?rt think enough of their own