BUSINESS CONDITIONS IN THE DOMINION.

Timaru Herald, Volume XCVIII, Issue 18084, 21 June 1924, Page 7

BUSINESS CONDITIONS IN THE DOMINION.

AN INTERESTING REVIEW.

(Special to the “Timaru Herald.”) WELLINGTON, Juno 20.

“Business conditions m tue Dominion, ' was the text upon which the acting chairman of directors (JUr \Viiluun \Vatson) at the annual meeting of proprietors of the Bank of New. ' Zealand, reviewed the farming and general outlook, as it appears to-day. Air Watson said that producers, of primary products here have, on the whole, experienced a fairly good year, tliougii weather conditions were not altogether favourable. The severe losses made by mercantile houses through over-importations in 1920, and 1921, are things of the past, business now being conducted at a profit, though heavy losses of capital have still to be made good. Tiie Woollen Manufacturing industry is feeling competition from abroad, consequently stocks are increasing and profits shrinking. Sawmillers and timber merchants have done very well, the demand for timber being heavy and continuous. That this country, with its abundant coalfields should have found it necessary to import no less than £'624,649 worth of coal from Australia last year, is most disappointing. “The majority of the Meat Freezing Companies,” Mr Watson remarked, “are in most unsatisfactory financial conditions. This is due largely to there being far too many works, particularly, in the North Island, to under capitalisation, to inexperienced management, and to failure to build up reserves when times were prosperous. Depositors with these particular companies lost their money, guarantors, to the Banks have also had to pay up, and oven the secured creditors have suffered considerable less. Several other companies are staggering on under loads of debt, and it is .difficult to see how they are to escape liquidation uniqss some satisfactory merger of interests can be arranged. During the season just ending, there has Jbeen strong competition from freezing companies and exporters for sheep and lambs at remunerative prices to the producer, and at the prices paid it must be a difficult matter for the purchasers to make a profit. The steady increase in wool values will help to. some extent.

I “The market for beef,” the chairS man confessed, “shows no improve- ! ment. Our frozen beef cannot compete i successfully with tho chilled beef of i the Argentine. The demand for wool | is still unsatisfied. Although all qualities are wanted, the most satisfactory feature is the strong v demand for medium and coarse wools-, as these comprise the bulk of the New Zealand clip. Another gratifying feature is the great expanson in the export of wool to the East, which, during the past year, amounted to approximately 200,000 bales from Australia and New Zealand, as compared with, say, 20,000 bales in 1914. Compared with values ruling twelve months ago, crossbred wools show an increase in value of approximately 50 'per cent, to 90 per cent., merinos and lialfbreds 25 per cent, to 40 per cent. The position of the dairy produce market is causing some concern. Heavy shipments have reached England during the last few months and have met with a poor demand at reduced prices. Daily farmers may have to accept lower prices for their produce in the future, and this, of cours®, will be reflected :ia land values in this Dominion. “Owing to the serious shoring# in the wheat yield of the Dominion, the Government has arranged , -to make large purchases in Australia. Much as it is to be regretted that sufficient wheat is not produced in this country, to meet our requirements, it cannot be expected that our farmers should grow wheat whilst their land can he put to more profitable use. The wheat purchase has intensified the acuteness of the exchange position 'between the Dominion and Australia. “Country lands,” Mr Watson said, have not changed hands to any great extent, vendors’ ideas of value still being much in, excess of prospective buyers. Unimproved or partially-im-proved bush lands are not easily disposed of, not only because of the present excessive cost of improvements, but also because of difficulties of financing such proposition, lenders being extremely shy of that class of security. There is no- question that considerable areas of land, thrown open years ago by the Government for settlement under various leasehold tenures on what were at the time considered reasonable terms, should never have been grassed. In view of the greatly increased cost of improvements, it would be but fair that there should be not only a revision of the rentals of such properties but also that an occupier should be allowed to relinquish any unimproved portion of the property, provided the latter area is large enough to support a settler when improvements can, if ever, be effected at a reasonable figure. The settler who goes out into the wilderness to carve out a home for himself, is entitled to every consideration —in a great many cases it would pay to let him have the land for a mere trifle. Some twenty years ago considerable areas of improved land were leased on terms which have enabled the fortunate lessees to transfer at a handsome profit after allowing for tho _ capital expended on improvements, It is desirable to sound a note of warning with regard to city and suburban properties which in some centres have changed hands at such high prices that, whether tho occupiers be owners or tenants, the rent charges are neeessairy so great that successs in business is rendered very difficult.