FARM MORTGAGES

Akaroa Mail and Banks Peninsula Advertiser, Volume LVI, Issue 5990, 30 April 1935, Page 1

FARM MORTGAGES

To the Editor. Sir, —IMr ,S. S. Biarcliay is evidently satisfied that France and Germany 'were right in going. off the gold standard, the result 'being that the wealthy man "had! t.o give up his 'wealth ! andl I'ive an plain bread and butter," ,adding "whereas' nearly everyone had 1 enough to live; on." It is curious haw iMr Barclay fails into the error oif supposing that I am pushing the: case foir it,he' wealthy man. 'M:r Barclay dloeis moit knoiw the position that 'arose ins .France and 1 Germany. The faciti was that inflation ruined those who lived! on wages, ■salaries, pensions', or annuiiti'SiS. These unfortunates found; that their 'wages off isay #3 per week or 60 pr.ei>war marks were worth, after inflating the currency, noit even one box of matches. His 1 statement that "nearly .everyone toad enough to live on" iis- amusing, to oinei who does know the coniseiquenceisi of iniflaticm'. If the (Btadford waalem mil'lls caw buy iMr Barclay's l crossbred' wool for fivejpeince here ini New Zealand, they pay .nioiw only four. English pennies. If our Government initiates our currency still further, Mr Biarcliay could receive oven 'ten New Zealand pence, 'but he wouldi 'buy nio moire good's with ■that money thaim .are represented l by four English! pennies. If we copied Germany he might receive even a thousand] pennies (N.Z. money) but wound 1 he be "better 'off ? [The 'truth is he couM' be reind'ered penniless' by that method'. !The golid count-riles of Europe could noit got off goMI again without a 'revolution, They know the shacking effects of inflation upon the poorer classes. IMr. Barclay dloeis not knciw, 'otherwise he would refrain from statihg that in the inflation period'' to France: kidl Germany "&F most, every onei had) enough to live on." Tit is' evident 'thait he is oowtenit wiilth inflation, and! would evein. Apr prove 'Oif more oif iit. I horpe be examines the position in Fnamce and Germany during their iinlfl.ait.iomi period 'before endorsing such a suicidal courise. IMr 'Barcliay quot.es me as saying that the 1 Deanoncratic policy of the United 'States "ruined the country." If Mr Barclay will! forgive me for cor rect'ing him., 1 saiid thait "the 1 United iStaites wilii; probably crash too" — Time wil prove the truth of this .statement.' 5, (April 1 18th.)> The unfortunates who rush up and down this country preaching American "plans" and! ".schemes" wi'l'l! halve some thing- to answer for. Time will prove the truith of this statement' also. Then Mr Biarcliay sisiks 1 how Great Bri'taiiin could! have paid her debt to the Uwilted 1 Stiat.es, and piay lit in gold. Fortunately for the United States, th'ls threat iwas not carried! out. It could have been, dcme by shipping goods to the United iStates at such lo'w prices (dumping, ,i.m .fact) that ■every factory in the United States coiulid have, been closed. [These goods woulidi have been paid for in NewYork with gold, which was no use. wh'lie lying' am the vaults, and (again without leaving Ne'w York) this same gold l woulidi have been used to pay oft' the d'eibt by buying depreciated dollars. (iSomy to worry you with this 'long explanation, 'Mr Editor, hut Mr Baricay evidently does not understand, intern-a'tiionali finance.) It is perfect truth tihati the British paiid the £50,C00,0C0 first instalment to the United l States' with the Americans' own money, simply by taking the profits on selling and re,-purchasing American railroad stock. Mr Barcliay is evidently 'not. aware l that England has not repudiated her liability to U.'S.'A., nor does l he appreciate the pciS'iitio.n regarding the interest'. Britain does not find it impossible to pay. It would! take too much space t.o expliailn that UjS.A. cannot afford to let payment be' made. Ilf Mr Bar.cliay wi ; l!l restrict the discussion to local a flairs we .shalli make more pro,gresis. He &ays a i'ot of mortgaged farmers "bought' their farms from the present mortgagees at well above their value," and then aisksi "why i.s it morally wrong- for the N.Z. Govern, ment to allow the N.Z. farmer to partly alter hiis agreement?" (Let me s-ay asi clearly as possible that 'whether the mortgaged farmers 'bought froim the present mortgage,eis or 'not, and paM more than the farms were worth, there is nothing more regrettable in the history of Neiw Zeailand than the action oif the Govern merit in giving .Its approval' to the principle of repudiation or breaches of faith. Every farmer who got into difficulties couldl Obtain relief from hiis mo!tgagee on the merits otf his individual' case. The slump found mortgagees 'writing off arrears and giving time for payment long before the Government beg.ain its Interference ■and ten® of thousands stood manfully by their engagements rather than

their word to be doubted. It is

to these mem t.hait every honour i;s : clue. They wiiM; be sought after, in the years to come', as- men whose business ecdie placed! them, in- t.hei front ra'rok. It ■will n-ot matter If they have no money. Tbeiir character is mud 1 the best recommendation. Mr Barclay a®los i'f ;i't is ißo.rail.ly wrong - to repudiate contracts, or, ais he ca'lfc it, "partly alter 'agreements." As he is a maim o, : f hoiniour, hoiw can he s-ugg"-est that pub Me interferemce with a ciOiii'tract betweeni two men could be I moral when' he would .shun: a man ,'wbo broke his' wordl? For. the Lilfe of me, 'I do not see' ho ( w anyone ca.n have two standiardls off right and. 1 wrong, one for public 'affairs, and) another for private. I lam etc., I 4U PER OEiNT." I \ I