HOW FARMS "GO BACK"

Evening Post, Volume CXI, Issue 130, 4 June 1931, Page 12

HOW FARMS "GO BACK"

A TYPICAL CASE PROPERTIES NOBODY WANTS | Much loose talk is indulged in at farmers' meetings from time to time, and in Parliament, about "hundreds of men walking off their farms," but it is not always easy to obtain specific instances. One such, however, is made available to "The Post" by a local financial institution, ana it may be typical of many in localities where conditions arc hard and the financial resources of the farmer slender, if they exist at all. The property in question is situated in the Wanganui Eiver district, some 25 miles from Taumarunui, and is nearly 1200 acres in extent. It was almost all in primeval bush, when taken over, but the farmer who tackled it was recommended as a sound and progressive man, and so far as the institution that financed him knew, or knows now, lie was all ho was said to be. The property was valued for mortgage purposes in 1919 at £10,092, so, taking into account the good character of the farmer and the valuation of the land, it was considered good enough to advance him £6000; this was thought to be quite safe, and further, o,n completion of certain bus?i felling, grassing, and fencing, it was recommended that a further advance of £000 to £000 could bo made.

The farmer got to work and kept to it, until the present depression set in. Then ho was struck by its full blast. He applied to the mortgagees for some relief and received it. His advance was written down from £6000 to £2000, and the rate of interest was reduced from 6} per cent, to 5 per cent. The | institution by this arrangement lost £4000, and its interest income was reduced from 6* per cent, on £6000 to 5 per cent, on £2000. Last mouth the Government reduced its valuation of the property to £850 —on a property that was conservatively valued at '£10,092!

That is not all .the story. The mortgagees are now called upon to pay the rates on its security, the property, and the rates amount to £114. The mortgagor has been applied to, but he states that he is unable: to pay them, and he gives reasons. "I have no money," lie writes. "My trouble is that no stock company will finance me for stock sufficient for my farm. When I approached companies for finance for stock 'I was referred to your company for a guarantee, as it was necessary because other mortgagees wero helping their clients in that way all over the Dominion. Tour company would not consider this proposal." The writer then states that land such as he held could not be sold at any price at present, and he instances three fa.ms situated in his district that were put up for auction under the conduct of the registrar of tho Court, but which failed to elicit a bid. Ho concludes: "No doubt your company treated me well. I am now prepared to do anything you wish with respect to tho mortgage on my laud." There the matter stands:-a farm of nearly 1200 acres, valued at £10,000 in 1919, is valued by the Government at £850 to-day, and is liable for sale in order to meet a claim of £114 for rates. And this may be only a typical case.