ANOTHER VIEW

Evening Post, Volume CX, Issue 134, 4 December 1930, Page 10

ANOTHER VIEW

NEED FOR ELASTIC MONEY

"A moratorium would possibly restrict us," said a commercial man, connected with a stock and station . business. "We would not to inclined to hand out money to farmers if we felt that we could not call it up at any timo we wanted to. That is where the restriction would be, though at present we are largely in the dark in regard to the moratorium; it may apply to land mortgages only." He, expressed the opinion that if there was any introduction in the way of Government protection the farmers would take full advantage of it. At the present time, without any restriction, some men would make an effort to pay what they owed, but with protection afforded, so much money might be locked up. Firms like his must have the money elastic. The observations, he pointed out, bore reference more to sheep farmers than dairy farmers, the latter being financed more t>y dairy factories. ■ Instead of a moratorium, he expressed the view that it would be far better if the Rural Credits system were extended. Firms like his would probably help men to carry on, but the view was expressed tliat they would not be assisted to the extent they had been assisted in the pastL. Farmers would probably be helped provided they were prepared to assist, ar^d they would probably be provided fjor up to a certain figure till the returjus came in, but assistance would be on a much reduced scale. It was realised that a man could not go on year aftipr year without spending something oia his farm, and a farmer could not worls; 14 hours a day every day the year rou^d. Many mortgagees were helping those men by cutting down the interest., or, in some cases, by capitalising it,' "Mortgagees are not so hard as theyt. are made out to be," he concluded with a smile.