HELPING THE FARMER.

Auckland Star, Volume LXVI, Issue 55, 6 March 1935, Page 6

HELPING THE FARMER.

EXAMPLES FROM ABROAD.

(To the Editor.)

Last July the United States Congress enacted a measure for the relief of farmers. The jneasure was the Farm Bankruptcy Act. The essential provisions of the Act arc: (1) Every farmer unable to pay his mortgage or other obligations could be declared bankrupt, have his farm appraised, and, with the consent of creditors, buy it back over six years at the new figure with 1 per cent interest. {■>) If creditors refused to compromise on this method, tiic farmer could continue in possession of his farm, pay a reasonable rent, and at the end of six years have the option of repurchasing his farm at an appraisal value approved by the Courts. In signing this measure President Roosevelt said: "In the actual operation of the law I do not believe that losses of capital will greatly exceed, if they exceed at all, the losses that would he sustained if this measure were not signed. It is worth remembering that this Act will stop foreclosures and prevent instances of injustice to worthy borrowers." In Australia a month or two ago the Commonwealth Bank underwrote a loan of £15,000,000 to be allocated in the amount of £3,000,000 for public works and £12.000.000 for rural advances free of interest. If these things can be done in other countries why not in New Zealand? Contrast these measures with the cumbersome proposals set out ill the Mortgage Corporation scheme, which appears to be simply a device for sustaining inflated land values. J.C.