LIQUIDATION POSTPONED

Evening Post, Volume CXVII, Issue 75, 29 March 1934, Page 8

LIQUIDATION POSTPONED

Farmers owe the Rural Bank of New South Wales 13$ millions, on 17,500 current loan accounts, an average^ of about £770. Mr. McKerihan, a commissioner of the bank, told a Royal Commission the other day that it would be. utterly impossible for the majority .of Existing settlers ever to be able to meet their total commitments. It would be necessary some writ-ing-down to take place. Asked whether he would favour legislation in that direction, he said: "No; the writing-down should be delayed as long as possible." This unqualified appeal for delay was accompanied by evidence of the means by which delay is being secured. According to the same witness, the bank in many cases has taken out liens, controls the farmer's revenue, disburses his expenditure, and "considers how much it should take for interest, how much for the Crown in respect of rent, and how much for other creditors.". The bank "then makes what payment is possible to the farmer, and .finances his further operations." For these services the bank "makes no charge." The witness added that other creditors are "also satisfied with'the bank's handling of the farm proceeds." In a different category are those farmers who sought the protection of the Farmers Relief Act, 1932, which enables the issuance of stay orders to protect farmers from creditors. The secretary of the Farmers' Relief Board established under that Act told the Royal Commission that while 1435 stay orders had been granted, 1348 farmers had lodged disclaimers! contracting themselves out of the Act's benefits, hoping, by doing so, to' get further financial aid from the financial institutions that financed them in the first place. The general trend of the evidence was that the various aids had assisted the production of primary producer—but have not touched the problem of marketing it. • .. ;