UNEMPLOYED AND LOANS TO FARMERS.

Press, Volume LXIII, Issue 19062, 26 July 1927, Page 11

UNEMPLOYED AND LOANS TO FARMERS.

TO THE EDITOR Ot THE PRESB. Sir,—Last Thursday, Mr Eansom, M.P., asked the Minister for Finance whether he would consider the advisability of extending loans to fa'rmers on the amortisation principle for the j period of five to ten years, to provide I work for unemployed, scrub cutting, j blackberry elimination, drainage work, j arid other farm improvement. The Min- j ister pointed out many difficulties con- j nected.with this proposal, and suggested that. he would be flooded with applications for loans. . However, the suggestion gives food for thought, and the I Minister promised to investigate the point with a view to evolving a scheme. , The suggestion I wish to make is this: -That annual loans be made to farmers j for the purpose of putting in and tak- j ing out crops, security being taken over t\e crop and the loan to be paid off as the produce is sold. By this means a great deal more land would come under cultivation, and much more -work be available for those who are unemployed. Production would be stimulated, exports would increase, and a new cycle of prosperity would set in. Most farm lands arc so heavily mortgaged at present that farmers have to economise by employing less labour and using less manure. Consequently, land is going out of use, and lying comparatively unproductive in old pasture. The farming community have never been so hard pressed as at present. The fall in | value of . rural land leaves. but the I bare bones to the farmer, which, in many cases, the mortgage but indecently covers.' To give immediate relief to both the farmer and those who are unemployed, loans for the direct purpose of growing crops are required. It does not matter whether they come from the Government • funds, or from local schemes of lending. Work done along the " riverbanks by unemployed may be very pretty, but it does not grow'-food for the hungry or -give ■relief:to .those farmers who are in debt. The growing of more .produce- will do both.;lmmediate "Production Loans" to farmers for the period of a season, 'for the direct purpose of giving employment and for the putting in and taking out of crops would do a lot to relieve the present depression.; This system operates now to a small extent, but could irfcelfyeatly extended if adopted by the

Government lending departments. If found successful in a small way there is no reason why it should not develop largely .into one of our national schemes of finance. By the genuine co-opera-tion of land, labour, and capital, many of our financial difficulties, both individual and collectively, can be overcome. And it appears that this can best be done by short loans to farmers for the immediate increase in production for which there is enormous scope.—Yours, C. H| ENSOR. Hanmer Springs, July 23rd.