SIR GEORGE ELLIOT’S ADVICE TO FARMERS.

Waikato Times, Volume 97, Issue 15273, 25 June 1923, Page 6

SIR GEORGE ELLIOT’S ADVICE TO FARMERS.

To the Editor. Sir, —In your issue of the 2ist inst. there appeared a timely letter from Mr Duxlield in reply to Sir George Elliot. For many years past we have become accustomed to cheap advice from the chairman of the Bank of New Zealand (and at which the writer has known the managers of other banks to laugh). Mr Duxfleld very properly reminds the chairman of the bank that it was saved from such obliteration as happened to the Colonial Bank, by chiefly the farmers of New Zealand, and it is worse than bad taste, now that the farmer is down, to tell him what he ought to have done and should now do, and swagger palatial buildings and fat dividends before his face as a merciless victor might do to a beaten enemy. It would be more to the point and to the credit of the bank if it would acknowledge its indebtedness to the farming community and bring brightness into the farmers' night of misfortune by disgorging the millions voted for it by Parliament at its midnight sitting, when the bank's night threatened its extinction. One of the highest authorities in the Old Land, and a saintly Anglican, said that he found the best meaning to the word-respon-sibility was “ The power and opportunity to discharge an obligation.” It’s only discharging a moral humane obligation on the part of any one saved from death on a dark night to repay the good deed on the first opportunity, and falling which give him three months to leave the country. In dealing with Sir George’s reference to agricultural banks, Mr Duxfleld will, I trust, permit me to sa-/that he has missed the real point, and the crux of the whole question: that is the free deposits held by the banks. Sir George asks that the agricultural* ‘banks depend on their own resources. Forsooth, indeed! Where would the Bank of New Zealand or any bank be if they depended on their own resources? ltoughly speaking, the bank owns nearly 20 per cent, of the capital it handles, and on this only 11 pays interest; the balance it lias “ free, gratis and for nothing.” Not only so, but when better interest is to be obtained elsewhere away goes this money, very often to the disorganisation and loss of the trade of tills country. The late chairman boasted that they earned much of their interest outside this country, and that with money belonging to residents of New Zealand. What a tragedy on the progress of our country I It would be very interesting to know the extent this money abroad had in influencing repeat orders to be sent as a flood to this country when prices were at peak, to the misfortune ol farmers and the public generally. The taxing of those millions of free deposits and, indeed, all unproductive wealth, would be the best step to establish an agricultural bank, because it would readily pay interest on such money. The banks would then get capital elsewhere, and depend on their own resources, and we would be saved the usual speech from the throne in the way of cheap advice, and, in the whole circumstances, gratuitous insults from the chairman of the. Bank of New Zealand.—l am, etc., HARD-HIT FARMER.