DAIRY PRODUCE FINANCE
TRADING BANKS TO LOSE BUSINESS
[Special to “Northern Advocate:'! WELLINGTON, This Day. In the course of his address at the ' annual meeting of the Bank of New 1 Zealand today, the chairman of dir- • ectors, Sir George Elliot, referring to ; the Primary Products Marketing Act, I' said.* One effect of the measure will be that, as from August 1 next, the financing of all dairy prbduce exported from New Zealand will be undertaken by the Reserve Bank of New Zealand on behalf of the New Zealand Government instead of by the trading banks on account of the dairy companies as in the past. The trading banks have played an important part in financing and developing the dairy industry from the'inception of the co-operative scheme in New Zealand, and it is not too much to say that but for the assistance given by the banks, the dairy factories as a v/hole would not be in the flourishing position they are today, j In view of the services rendered to i the dairy industry, it is to be regretted that the Government, in framing its proposals, has decided to take away from the trading banks an important portion of dairy produce finance which in the past has been handled by them with satisfaction and at a modest profit.
The loss of the London exchange in connection with exports of this produce will make unprofitable the working of some of our branches, the existence of which has only been justified because of dairy factory connections. In another portion of his speech, Sir George Elliot stated: Some of the legislation directly affects the trading banks. For instance, they are to lose from August 1 next the handling of the exports of dairy produce, and should wool and meat come under the Government’s guaranteed price- and marketing scheme, the effect would be that the banks would be entirely deprived of the normal means of replenishment of their London funds and would have to purchase all their exchange requirements from the Reserve Bank of New Zealand. I need hardly say that the Government’s proposals in this direction will seriously affect an important branch of the trading banks’ business, a business they have developed and carried on since the earliest days of banking in New Zealand. t
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https://paperspast.natlib.govt.nz/newspapers/NA19360612.2.77
Bibliographic details
Northern Advocate, 12 June 1936, Page 11
Word Count
383DAIRY PRODUCE FINANCE Northern Advocate, 12 June 1936, Page 11
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