MORATORIUM UNLIKELY

Dominion, Volume 24, Issue 63, 8 December 1930, Page 12

MORATORIUM UNLIKELY

Too Serious a Step

CABINET OPINIONS Special Session Unfavoured MR. RANSOM AWAITED In spite of the urgent request by the National Dairy Association and the partial support; of the Dairy Control Board for a moratorium on mortgages in order \ to assist farmers over the pre-, sent depression, the opinion is freely expressed in Gove ™"?®" * quarters that such a sei ous sten will not be taken if another way out of the difficulty can be found. There is likewise little real hope of the Government agreeing to the calling of a special session ofParhamen2 this step can P« 99IW^ 01 g®£ although it is clear that the gene ral economic condition of he country and the state of the national finances are at pi esent exercising the close attention of ' Cabinet. With the spectacular d 2' ol ’. in JThJ nrices recorded at the first sale of th.. Reason rumours immediately became cnrreut that a moratorium would be considered by the Government with the obiect of relieving the serious financial position in which many primary producers found themselves. The decline in wool values was the last of a adverse price movements directly at fecting the farmers, and so serious was the reversion that undue affirm‘ e*pressed in many quarters. It is under stood on good authority that Cabinet at no time seriously considered the granU in"- of a moratorium until the definite request made by last week’s deputation was placed before it. Information had reached it that a moratorium had been suggested by a certain section of the primary producers, but the measure was not given actual attention until the proposal was presented formally last week. A Last Kesort. Although the deputation that waited on Sir Apirana Ngata and the Hon. B. Masters emphasised that m its_ view the only way out of the present difficult situation was to grant a moratorium, it is understood that Cabinet is not disposed to accept the representations made without first making a full Up ' (itiiry into the position. It was pointed out by Sir Apirana Ngata that the granting of a moratorium should be the last step to be taken to assist those who find they cannot pieet their liabilities through the reduction in the return upon produce. He emphasised that the making of such a serious concession would probably have far-reaching effects and that the State itself would be involved considerably in the temporary removal of certain financial obligations. A considerable proportion of many farmers’ cream and wool cheques finds its way into the State purse in repayment of advances, and it was made clear to the deputation by Sir Apirqna that this question could not be overlooked by the Government. Apart from that other important financial considerations enter into the question of granting a moratorium, and ns a result it is understood the Government will refuse to take any definite step in the desired direction until it has satisfied itself that every other avenue of escape from this extreme measure has been closed to it. Hollowing upon the request for a moratorium members of Cabinet have been giving the question their attention and the considered advice of the Treasury has been taken. As far as can be ascertained at the moment there is nothing to show that mortgagees have been making unreasonable demands." On the other hand the opinion is that both the banks and stock' and station agents have been most patient. Special Session Prospects. It was natural that Sir Apirana could not commit the Government in the absence of both the Prime Minister and his deputy, but Mr. Ransom will be resuming his official duties to-morrow, and it is understood that the general economic condition and the part the Government will be called upon to play in its rehabilitation will receive earnest attention this week. Several important questions have been held over until the return of Mr. Ransom, and foremost among these is the question of finance in general and the position of primary producers in particular. The granting of a moratorium would require an Act of Parliament, and there is every reason to believe that the Government is far from anxious to call a special session which might precipitate n political crisis before the general election of next year. It is well known that a Government can do as it likes in a recess without being called on to answer immediately for its actions in the House, and in spite of the fact that Cabinet is maintaining a studious silence as to its actions it is known that it has not ceased to impose extra charges in .certain directions for the purpose of increasing revenue. So far it has not seen its way clear to announce exactly what it is doing. The Prime Minister made a statement in London last week upon the moratorium proposal, and his disfavour of the project is reflected in the attitude of other members of the Government. It is realised that the step is too serious to be taken lightly. No time has been lost by the Government in making an inquiry into the position of the primary producers, and it may be taken for granted that , if other forms of assistance can be given to tide the farmers over the depression Parliament will not be summoned before the normal time next June. FARMERS’ POSITION Big Meetings to be Held Dominion Special Service Wanganui, December 6. An important meeting of farmers will take place in Hawera on December 17. The meeting will be one of the three rallies to be held in the North Island, when the farmers will discuss the present economic position in New Zealand and the union’s policy in relation thereto will be defined. The president of the Harmers’ Union, Mr. W. J. Polson, and other speakers, will address the Hawera meeting, which will last all day. Two other rallies will be held, one in Woodville and the other near Auckland. The Women’s Division are holding meetings to assist with the rallies. Early Session Advocated By Telegraph.—Press Association. Hamilton, December 5. At a largely-attended meeting of the Waikato Harmers’ Union to-day, a resolution was carried urging the GovernorGeneral “to assemble Parliament immediately to consider remedies for the present desperate economic condition pt tne country, and the fanning community in particular.”