SWAMP LAND DRAINAGE

Poverty Bay Herald, Volume LIX, Issue 17871, 30 August 1932, Page 2

SWAMP LAND DRAINAGE

KING COUNTRY OPERATIONS SCHEME AT MANGARAMA An important stage has been reached in Connection with the Mangapu .Drainage Board’s operations, near Te Kuiti. In the Mangarama district, about seven miles north-west of Te Kuiti, cuts and clearances have been completed in the Mangarama Stream. The work has alrehdy resulted in the drainage of a large area of swamp land. Previously this land had been practically useless, but from results already achieved there is every reason to believe that, when the drainage operations arc completed, a valuable area of land will be made available. The district concerned comprises between 2500 and 3000 acres of exceptionally good land. The water level at the junction of the Mangarama and Mangapu Streams has been reduced by about sft. The drainage of the Mangarama area has been made possible by the board’s previous operations, extending over .18 miles of river to the outflow of the Mangapu into the Waipa River, near Otorohanga. In these earlier operations about 50,000 cubic yards of spoil have been removed in making the Numerous cuts. In addition, willows and dead timber have been cleared

from a further depreciation of exchange would ibe outweighed by the ultimate disadvantages accruing, not only to the producers themselves, but to 1 the whole cofiinrunity,' in the form of increased cost of Government finance, increased cost of imports, rise in internal prices, increased wages, loss of customs revenue, and the lowering of the Dominion’s credit. Moreover, New Zealand had a large external debt and had many indispensable imports. Summing up, Sir Austin said that at the beginning of Slay the Government, by its - firm decision to maintain the credit of the Dominion was able to borrow £5,000,000 in London. It also realised £2,000,000 of revenue securities, and these two operations correspondingly reduced the demand on the New Zealand banks to provide the Government with London money. The Government recently announced that, its requirements having been found in London up to March 31, 1933, and with an estimate tzade balance of £12,000,000, there was no financial reason for retaining the licensing regulations; and there seemed to be less reason than ever, on these grounds, for raising the exchange, especially as provision was assured for payment of the present level of imports. BALANCE SHEET ITEMS In reviewing the balance sheet, Sir Austin said: “The gross profit after providing for bad and doubtful debts is £600,300, a decrease of nearly £46,000, or 7.1 per cent., as compared with last year, and the decrease in our net profits is £30,500 or 14.4 per cent., the amount being £177,800 as against £208,300 at March 31, 1931. Investment depreciation is fully provided for out of a special reserve account already set aside for that purpose. Overhead charges are down by £lsjooo. We consider it prudent, in view of the difficulties and the uncertainties of the immediate future to transfer £50,000 to a special exchange and contingency account, and we have not felt justified in recommending a higher dividend than that proposed. In view of all the circumstances which I have placed before you, I fee] sure that our proprietors will not look upon the return of 7 per cent, free of tax, as being other than satisfactory in theso times. “You will gather from what I have briefly told you that the lot of the fanner and primary producer in New Zealand is to-day an unhappy one. Hampered in many cases by the heavy burdens incidental to the purchase of their farms—bought in many cases during the land boom—and by heavy taxation, apart altogether from the almost ruinously low prices obtained for their produce, they have suffered, and are still suffering severely, and it is our desire to do all that we as prudent bankers reasonably can do to help them through their present distress by exercising patience and consideration. The retiring directors, Mr. Leopold M. Myers, Viscount Hampden, and Mr. Henry F. Freshwater, were re-elected. Interesting features in connection with tlie National Bank are as follows: —The latest quotation for the bank’s shares is £3 10s 3d. At this figure the return on a 7 per cent, dividend is £4 19s 8d per cent. On shareholders’ funds (capital, reserve fund and carry forward) the return is £3 7s 7d per cent. Liquid assets are equivalent to 51 per cent., or 10s 2d in the £, of total liabilities to the public, and for every £1 of its own funds the bank is holding only £3 9s 5d of the public’s money, which is an exceptionally strong position. The proportion of shareholders’ funds to total assets is 22 per cent.