BANKRUPTCIES.

Poverty Bay Herald, Volume L, Issue 16619, 24 December 1924, Page 4

BANKRUPTCIES.

lIOV MANY' FA I’M KBS FARED

(Special io (lie Herald.)

AUCKLAND, this dav

The Oflieial Assignee at Auckland lias been consistently busy during the past year, and il comes as no surprise to find that the total -number of 'bankruptcies administered by him is in excess of that in 1923, which, too. was «. heavy year. The bankruptcies to cLt.te total 179, which is an increase of 16 upon the number for 1923, which was 163. In the previous year the total! was 153. Gncei more farmers head the list, and a.s prices for produce, have! been satisfactory, it is a natural assumption that this'is tlm aftermath of the high prices paid for farming land during the boom a, few years ago. Striking evidence of this fact has been revealed in several largo estates inquired into- before the Assignee. Men who on paper were possessors of moderate and even big fortunes found, with falling land prices, tha-l- their possessions were, worthless, their equities disappearing one after aiwifher in the face of heavy mortgages. The total number of farmers who went bankrupt during the year was 42. and in addition there were four sharemilkers who filed petitions of iuso>lveney.

Considering the large number of shops erected during the year, it is not- surprising to find among the bankrupts eight- storekeepers and three confectioners. There wore also nine land agents, of which the city seems to 1 have an inordinate supply: eight contractors, seven builders, five butchers, and four Imot-makers. The engineering industry, particularly cm the motor side, was also well represented. There were five mechanics and two engineers, two taxidrivers, and four garage proprietors among the failures. Tn iho whole 179 flucre were only four aborigines and five laborers, while three companies were liquidated by order of the Court.

Ttie unsatisfactory nature of the Bankruptcy Act was freely criticised by file Assignee during the year, and there is a- general agitation throughout- file Dominion for ai review of tin’s legislation. To 1 the credit system lias been attributed many failures. The keenness of competition has undoubtedly induced manv firms to give liberal terms of credit, mid this in most of the failures attributed- to the system, led bankrupts io continue in business in the forlorn hope of redeeming their position.