INTEREST RATES

Evening Post, Volume CXII, Issue 104, 29 October 1931, Page 14

INTEREST RATES

REDUCTION URGED

POSITION OF THE FARMERS

i meeting of the Dominion cxeeutivo or the New Zealand Farmers' Union to--1 It was stated that the Minister of Finance (tho H6iu W. Downie Stewart) had expressed himself as opposed to loan conversion, whether voluntary or J compulsory. ''■ . . i The Dominion president (Mr. W. J. , Poison, M.P.), said there was no doubt ? that loan- conversion had been of immense value to Australia, but it was problematical- whether New Zealand [ would benefit-in'the'same way. What ' was essential was a reduction in in--1 terest rates throughout the country. He was hopeful that when a Government had a sufficient mandate from the peoplo it "Would tackle the problem in 5 tho near future. It was clear that ) primary producers would not bo able to hold their own unless they were " given Borne substantial relief from high ' interest rates. The rates varied cou- ; siderably, but they were as high as 8 . per cent, in some eases. The proportion of interest to the general expenses > of farming in New Zealand was very high. He know of ono caso in his dis- • trict where the interest charged absorb- ) ed 75 per cent, of the gross proceeds, r and he had no doubt there wore many ! others in a similar position. The bur- , den of interest was the.most intolerable of all the burdens on. the primary producers. Some relief would be* given, on the first of next month by the banks > reducing interest to primary producers I by i per cent., and many mortgagees } had voluntarily reduced their rates, but ' unless an all-round reduction took place J there would not be a very large mea- ' sure of relief.

The following Manawatu remit was subsequently carried: "That the Government be asked to reduce further the rates of interest on all future and existing business." .

Another Temit on tho same subject was carried as follows: "That the Government be requested to make arrangements with the State Advances Office and the Public Trustee to release farmers of the instalment on long term mortgages while the depression lasts."