BUILD UP RESERVES.

Waipa Post, Volume XXIV, Issue 1425, 10 November 1923, Page 7

BUILD UP RESERVES.

ADVICE TO DAIRY COMPANIES.

Sir Thos. Allen, a director of the Co-operative Wholesale Society, London, who received an address in Pahiatua last week, advised the dairy companies to build up reserves. He repeated this advice in the Wairarapa. The Age states that a gentleman connected with the dairy industry said he was greatly impressed by the remarks of Sir Thomas Allen at Carterton on Saturday when he urged dairy companies to build up reserves so as to be independent of banking institutions at critical periods.

“Sir Thomas,” he said, “is evidently not conversant with the average dairy farmer who is a pseudo farmer awaiting the first opportunity to quit his land at a profit. It is hard to induce these men to take up a few shares in their factory, let alone to allow a small percentage of their butterfat payments to remain on deposit. Although Sir Thomas does not look favourably upon the Control Board, it will be vested with power to create just the reserve he advocates. No one likes the term compulsory, but if those in the dairying business will not voluntarily protect themselves, then compulsion if applied, is a compassionate antidote.”