BLOW TO BANKS

Stratford Evening Post, Volume IV, Issue 156, 13 June 1936, Page 5

BLOW TO BANKS

MARKETING BILL. I DAIRY PRODUCE FINANCE I : Fast: Assistance Rendered Tc Industry. I HOPES FOR FUTURE. j Press Association —Copyright. Wellington, June 12. i “in view of the services rsnder- ! ed to the dairy industry/’ raid Sir George Elljsc'tt, chairman of directors at the annua! meeting | of the proprietors of the Bank of j New Zealand to-day, "it is to be I regretted that the Government, j in framing its proposals, has decided to take away from the j Trading Banks an important portion of dairy produce finance ■ which in the past has been bandied by them with satisfaction I and at a modest profit.’' .1 “One effect of (lie Primary Pro- | ducts Marketing Bill,” Sir ge j con.inucd, “will be that, us *T«;ni i ;t | August next, the financing cf a,I ciaby ; produce exported from New Zealand j will be undertaken by the Reserve ! Bank of New Zealand on behalf of I the Now Zealand Government in-head | of by the Trading Banks on account of the Dairy Companies as in the past. ‘‘The loss of the London esenange in connection with exports of Hits produce will make unprofitable ,he | working of some of our branches, the I existence of which has only been i justified because of dairy factory connections. * “The Trading Banks have p’aycd an important part in financing rnd developing the dairy industry from the inception of the cooperative scheme in New Zealand, and it is not too much to say that but for the asS'*.*.-*'.*

sistanca given by the banks, the j hairy factories as a whole would not be in the flourishing position they are | to-day. j “The Hon. W. Nash, Minister o[ ! | Finance, who is also Minister of ] ! Marketing, is hopeful of securing a i Market for ail New Zealand’s surplus 1 dairy produce by reciprocal agree- | nients with Britain and other coun- ' tries. Ho is shortly to proceed to j Louden with this object fa view, and ! Lis efforts to expand New Zealand’s j markets will most certainly' have the j sympathetic support and goodwill of j the public.” I In conclusion the chairman said he j ! wished to emphasise, by no means for I

| the first time, the urgent necessity of | facing the fact that for New Zealand i the United Kingdom was practically j its only market. j “If due regard is paid to the main- | lost advantages peitainlng to a closer j reciprocal trade relationship wit a the j Mother Country,” he said, “and if ; that reciprocal trade relationship is j v is-ly fostered, New Zealand, with its gonial climate ami fertile -mi', should find that general prosperity 1; not unattainable.”