RELIEF FOR FARMERS.

Press, Volume LXVIII, Issue 20730, 15 December 1932, Page 8

RELIEF FOR FARMERS.

MR C. A. WILKINSON'S PLAN. REVOLUTIONARY PROPOSALS. (PBISS IS6OCIITXO* T*Lsaß4lO NEW PLYMOUTH, December 14. Mr C. A. Wilkinson's scheme to aid farmers in their difficulty was made public to-night. In brief, it is that all farm lands in New Zealand should be entirely freed from mortgage liability, both capital and interest. That henceforth no mortgage liability should be allowed on farm land, and that in view of the freeing of land from all mortgage debt all farm land over and above what is considered a reasonable area should be resumed by the State without payment for further settlement purposes, and the land thus resumed by the Crown should be acquired on the basis of the reduction made by abolishing t}je mortgage debt on the land concerned. Money and Production Values. "These drastic steps," said Mr Wilkinson, "would place primary producers in a position to compete with any country in the world, and do more to rehabilitate the country than any other proposal yet suggested. The main feature of my scheme is that I propose to bring money values into line with farm production values. After arriving at the true value of the mortgages, inf terest payments should be made on a three per cent, basis, and to provide for fluctuations up or down on an index system according to export values I propose that all existing farm mortgages should be reduced in value commensurate with present-day export prices; "All farm mortgage contracts made before September 30th, 1929, and still outstanding, should have their value based on the average of export prices from September 30th, 1925. to September 30th, 1929, and be reduced proportionately according to export values existing between October Ist, 1930, and March 31st, 1933. All outstanding mortgages entered into between October Ist, 1929, and September 30th, 1930, should be calculated in a similar manner and ia subsequent separate years. Issue of State Bonds. "I propose that the State should take over- the whole liability under the mortgages (as adjusted) by issuing State bonds payable to bearer and saleable on the Stock Exchanges. I estimate that this liability would not under any circumstances exceed £200,000,000, pog--8 1«. •, consi<ier &bly less, which would entail a burden of interest payments not exceeding £6,000,000 a year. In order to provide funds for the payment of such annual amount, I propose to imL l "leome tax upon the net profit nrn£,„ armers ' or a sales tax on all W™!V r Stock sold fr ° m farms, or farms ih* the £ ross receipts from of the ®P ini °n that nothing short s 2&'. Sly m , will do what "It is agreed Mr Wilkinsonupon the nrim! he fewest burden rent, andtaiaSn.'" e ' W is interest > up a r ?oTmm a ee Ve tr ee - iDg to " ni g ht S(J t scheme. e to the