Price Of Copra.

And Plantation Debts.

Letter to the Editor, A LOT has been written about the price of copra, but I think the main point has been overlooked by most of the writers.

They seem to be looking for an increase in the price of copra as an only chance of improvement to get a fair re turn for the money invested by returned soldiers and others in the properties taken over by the Custodian.

They overlook the point that a rise in copra may be followed by a still further rise in the price of goods re quired for rations and stores. Even now these prices are far too high, which is indicated by the merchants’ dividends paid at 8 per cent, and 10 per per cent.

If the price of copra came still lower it is not likely that the stores’ prices would be reduced, for they would more than likely. state that no reductions

could be made as they were purchased by them on a higher market.

These prices, taken into account with the price of copra, give very little hope for the planters to pay off the Cus todian’s instalments, and I think it about time that something should be done to get the Rural Bank, through the present Federal Government, to take over from the Custodian (who acts for the Federal Government) and let the Rural Bank deal with this matter, as it has done in New South Wales. This also to include Guaran tors’ amounts for all plantations, which would allow the planters to open accounts with the different Trading Banks.

Then the planters could buy from any merchant or store, and the competition between them for copra and sale of goods would certainly lead to reduced prices and a great saving, out of which . the Custodian or Rural Bank would more than likely get the instalments.

The Government, or otherwise the Rural Bank, would be in a better posi tion to control the plantations than the present guarantors.

It might be said that this would take

too much money, but money is lacking for investment by the banks and surely the rate of interest is sufficient to meet all demands, as it would be far cheaper to administer the plantations through a Bank and allow the planters to act for themselves with a possibility of meeting the instalments and doing away with the moratorium.

From the banking point it would be better for them to deal direct with the planters, as there would be more exchange paid instead of credits and debits going through the merchants’ hands, both internally and externally.

They could still transact their usual business by Certificates, as at present, and await the favourable markets as before. I am, Sir,

Rabaulite.

T.N.G., 8/8/33.

The “Pilgrim,’’ an American schooner, arrived in Port Moresby, Papua, from Fiji on August 21, on a world tour.

Fourteen months have been spent in the South Pacific and the owner expects to return to America at the end of next year.