AGRICULTURAL FINANCE.

Colonist, Volume LXII, Issue 15347, 10 April 1920, Page 2

AGRICULTURAL FINANCE.

A WORD OF WARNING.

Mr J. Barugh, chairman of directors of the Farmers' Co-operative Auctioneering Company", voiced a warning to the assembled meeting of shareholders at Hamilton on Saturday, on the danger of the inflation of land and the grow* ing tendency of farmers to rely on securing very liberal financing in connection with their operations. "During the past year," said the speaker, "owing to the speculative demand for land, prices have jumped considerably, and in any opinion it is doubtful, in many instances whether these hgh prioes can be justified.' Shipping difficulties, and the uncertainty as to the course of markets abroad will undoubtedly have the effect of restricted rather than increased accommodation. The termination of the commandeer on 30th June next is expected to materially affect the finance of the Dominion. Under the commandeer the Imperial Government paid for what they purchased, but in future we shall have to finance our requirements in the old style, and the conditions upon which I have previously remarked are sure to result in the banks pursuing a very conservative policy in making advances against produce. The burden which will be cast upon them will be a heavy one, and it therefore behoves everyone to put their finances on a sound footing without delay', so as to ■minimise the effects of any restrictive I policy."