NOT INDIFFERENT

Dominion, Volume 26, Issue 69, 14 December 1932, Page 8

NOT INDIFFERENT

City Interests & Farmer

BUSINESSMEN’S VIEW Exchange & Bonus Questions In a statement on behalf of the special Business Men’s Committee, the chairman, Mr. Edwin Salmond, says that a criticism on the committee’s report, published in “The Dominion” on December 2, by the Hon. A. D. McLeod, and a letter on the same lines by Mr. R. O. Montgomerie, of Wanganui, have not been replied to before because of absence from Wellington of several members.

“Mr. McLeod is unfortunate,” Mr. Salmond says, “in his impression that city interests view the plight of the farmers with indifference, and equally unfortunate in his expression that the suggestion of an inflated exchange has been met by the cities with ‘almost hysterical scorn.’ The whole i>osition is that the committee objects strongly to inflated exchange, because the evils engendered by such a device are far greater than the benefits the farmer would receive. Such a step is indefensible because of the intolerable burden that would be placed on the rest of the community. The committee agrees there are grave objections to a bounty or subsidy, but if it is essential that the farmer gets relief, then such a bonus scheme is preferable to Inflated exchange. “Very Forgetful.”

“Concerning the opinion of Mr. It. O. Montgomerie, published in the same issue, this gentleman is less guarded in his criticism of the committee’s statement. He actually goes to the length of describing it as ‘typical of the selfrighteous city attitude toward the farmers’ present problems.’ Mr. Montgomerie enters into a general tirade which appears to have no particular point. He evidently considers, however, that nothing has been done for the farmer by the State. Surely he is very forgetful. At the present time the farmers are, as they always have been, the most assisted section of the country.

“So far as any further benefit is concerned, however, the committee is of opinion that if its policy were carried out the individual farmer would eventually gain, because the lot of the farmer cannot be improved until the price of farm lands reaches its proper level.

“It is dangerous to give a subsidy or bonus before the price of land reaches bedrock, because otherwise the price level would tend to keep up. Bonuses, in any case, unless specially safeguarded, would probably get into the pockets of stock and station agents or other mortgagees, and therefore be of little assistance to genuine sufferers. Farm Finances. “The committee sees no reason why financial institutions which are lenders of money on mortgage have(a greater right to be protected from.loss than those members of the public who have invested their; savings in stocks, and shares, which have vastly depreciated,’’. Mr. Salmond continued. “It is folly .W close our eyes J®. the fact that a large proportion of moneys lent on farm lands has disappeared,-and mortgages must be adjusted accordingly. Mr. Montgomerie cites figures to show that city values increased by £211,000,000 during the period from 1914 to 1930, but he does not mention the value of city property to-day. It has never been suggested that city property holders and tenants such as shopkeepers, merchants, and others should be protected from loss by the State. “The committee believes that farm-, ing should .be looked upon as a business and not as a sentiment. It appears to be assumed that a farmer who is unable to meet his mortgage liabilities will be forced to walk off his farm and leave it to deteriorate. As a matter of fact, a mortgagee in his own interests will either compound with that farmer on a reduced basis or replace him with another. The only factor of importance to the country as a whole is that the farm 'should not be allowed to go out of production. With the water squeezed out of the inflated and unjustified value, that farm will be kept on by someone, if only in the interests of the mortgagee.

“That is what the Business Men’s Committee meant when it referred in its original statement to ‘natural laws’, governing capital values. It believes that in that way, and that way only, will the country return to a safe foundation.”