INTEREST RATES.

Press, Volume LXVIII, Issue 20444, 14 January 1932, Page 6

INTEREST RATES.

| DISCUSSION BY FARMERS. DIVERGENT VIEWS. "I am satisfied that an all-round reduction of interest "will not meet the case. There are some of us to-day who cannot pay any interest at all," said the president of the North Canterbury executive of the New Zealand Farmers Union (Mr Colin Mcintosh) at yesterday's meeting of that body, when a circular letter from the Dominion president (Mr W. J. Poison, M.P.), was being considered, in which the views of farmers were asked on the question of interest reduction, or reduction of principal. A Small Saving.

Mr Mcintosh added that Professor Tocker, in conference with the Union executive some timo ago, gave a good illustration of the fallacy of such a suggestion when ho pointed out that a farmer with a £IOOO mortgage on Ms 'property, if given a reduction in interest of 1 per cent., would save only £lO a year, an amount which would be insufficient to keep him on his farm. Each caso should be considered On its merits. A reduction such as was suggested would cost tho Government £600,000 per annum on its lendings. As a matter of fact, the Government now did not collect interest charges in some cases, but in other instances was as hard a landlord as anyone else, if it considered that there was any chance of collecting interest. "Land Might Coine Back."

Mr J. Gilmour said that it would be unfair to the mortgagees if values were written down, as in a few years' time the land might easily come back to its present face value. Mr T. Thompson said that he favoured a reduction of interest. He considered that a reduction in interest would be a great relief to farmers. He real ised, however, that the question was a very involved one, which required to be dealt with carefullv. Tho president said that there was a lot in Mr Gilmour's contention. Some time ago, for instance, breeding ewes were worth 40s a head, and later dropped to 10s, to rise two years later to 255. "What we want is a moratorium again," said Mr J. T>. Hall. Mr J. B. Cullen advocated a general reduction in interest, not in principal, as the means of meeting the position. Power of Court. The president said that the Court had the power to deal with a hard mortgagee, and could reduce interest if it liked. Tho Court was of great benefit to farmers, and it was satisfactory to know that reports of huch cases could not be published in the newspapers. Mr Cullen said he thought it was unfair to expect a reduction from private individuals when the Government would not give such assistance. The matter was left in the hands of the president and Messrs J. B. Cullen and J. D. Hall to watch, and it was decided that in the opinion of the meeting some form of assistance to farmers was necessary on the lines indicated.