FARMING AND COMMERCIAL

Manawatu Standard, Volume XLV, Issue 277, 27 October 1925, Page 5

FARMING AND COMMERCIAL

AGRICULTURAL BANKING. DANISH METHODS. SIR ANDREW RUSSELL REPORTS. Sir Andrew Russell, who has been abroad during the past two years, with London as his headquarters, has been making a study of the position in regard to Agricultural banks in Denmark, and has forwarded a report of investigations to the Dominion secretary of the Farmers’ Union. These banks, or credit associations, as they are termed, are based on co-operative action by farmers. A number of intending borrowers get together and apply to the Government for a charter to form a credit association. These associations are subject to Government control and inspection. Sixty per cent is the limit of margin for a loan on farm and stock. The rate of interest charged the borrower includes provision for amortisation in from 45 to 60 years. The amortisation works out at .42 per cent, and.2 is added for reserve and administration. Thus, if the annual interest payable on the association’s bonds equals 4 per cent, the charge to the borrower will be 4.62 per cent. According to Sir Andrew, these associations have been successfully conducted, and no loss has been sustained so far. He summarises his conclusions as follow: “It would be necessary, if starting these associations in New Zealand, for the Government to give some form of guarantee to inspire confidence at the start. This has been dono in America in the case of agricultural ■ credits of farmers’ loans. Once started, and: the public inspired with confidence, this guarantee would not be required. As was expected, it was fouhd that money could not be borrowed through credit associations in Denmark at other than open maiv ket rates. The low rate of interest is due to the undoubted security and the low cost of administration. Credit bonds are considered among the best gilt-edged securities in the country, and are freely used for the investment of trust funds. They also have an attraction to the investor, in that buying to-day at present market rates, 79A, there is the gambling chance that the bonds may be drawn and redeemed the following year. Every year, of course, this chance becomes greater, and the bonds naturally appreciate in value. Further, as these bonds are issued for any denominations, £25 being the usual face value, they are available to the small investor, who obtains a higher rate of interest than he would be able to obtain through the savings banks; in fact, it shortcircuits the investor and the borrower, while in New Zealand the savings bank takes the small investors’ money, passes it on to the Public Trustee, who loans it out to the borrowing farmer. There is also the consideration that no stamp duty is paid on the bond, neither are there any transfer fees.” SHIPMENTS OF EGGS. SYDNEY, Oct. 26. The hold-up in egg export by the [ strike is being relieved and 220,000 dozen are being shipped by the Suevic for London. The Esperance Bay will also ship 150,000 dozen on November 11th.—Press Association. THE WOOL MARKETS. GOOD SALE"AT SYDNEY. SYDNEY, Oct. 26. The tenth series of wool sales open- | ed with strong Continental, Yorkshire i and Japanese competition. All quali-; ties sold at the best closing rates of the : last series. There was a tendency to 1 further improvement in the finer | grades and full clearances were made, j Greasy merino touched 27 3-sd. j Press Association.

NATURE OF “BUSH SICKNESS.” DEFICIENCY OF IRON. The conclusion, based on exhaustive research, that “bush sickness” in cattle is due simply to a deficiency of iron in the pastures affected was presented bv Mr B. C. Aston, chemist to the New" Zealand Department of Agriculture, in a paper read before the chemical section of the British Association. Mr Aston said veterinarians had satisfied themselves that the mortality of ruminants which occurred in every case in which the animal was kept long enough on the same land without a change, varying from six months to a year, was not due to any specific organism, that the disease did not spread from one district to another, and that transfusion of blood and inoculation failed to convey the sickness from an unhealthy to a healthy animal. The disease was confined to special areas, and affected cattle rapidly improved in condition and recovered perfectly when removed to what was known to be healthy country. The absenco from any acquired immunity in ruminants, and that horses thrived for years upon pasture where ruminants would sicken and die in a few months, were well-authenti-cated facts. The cause of this remarkable mortality which only affects ruminants (goats and deer. are reputed to be affected) might be either a deficient element in the food supply or a poison. The second conjecture is disposed of by the analyses of soil and pasture and animal specimens, which fail to show the presence of any known mineral poison in toxic amounts. The facts that a beast will return after a change and then fatten upon the same pasture upon which it became emaciated, and that horses are not affected, also points to an absence of any mineral poison. Chemical analyses of blood from diseased compared with that from healthy beasts showed a great deficiency of iron, and this suggested experiments with iron salts on the pasture on which sheep were grazed. Mr Aston concluded his paper with an account of the experiments that have been made in the treatment of pastures with iron salts with a view to correcting the deficiency. BAN ON PRESERVATIVES. THE BRITISH REGULATIONS. BUTTER EXEMPT TILL 1928. The British' Ministry of Health recently issued the final order governing the use of preservatives and colouring matters in foodstuffs. The regulations are to come into operation on January 1, 1927, except that in regard to butter and cream the date is put forward to January 1, 1928, in respect to the revocation of the orders of 1912 and 1917. In regard to the use of preservatives in bacon, ham and margarine the date of operation will be July 1, 1927, and in the case of butter July 1, 1928. The extension of time in regard to butter is the outcome of representations by the Dominion Governments that early operation of the rules would seriously affect the New Zealand and Australian trade. In respect of imported goods, the regulations are to bo administered by officers of Customs and Excise, subject to any directions given by the Commissioners after consultation with the Minister for Health. PHOSPHATE FOR FARMERS. HELENSVILLE. Oct. 22. A farmer at a meeting addressed by Mr Coates asked if the Government would do something towards getting phosphates for farmers at cheaper rates. The Prime Minister replied that the Government was inquiring into it now, with a view to seeing if phosphates could bo givon at bedrock prices. The Government recognised that it was absolutely essential that phosphates should be delivered at the lowest cost possible. Phosphates were absolutely necessary if tho land was to be kept up to its productive capacity.