NATIONAL CORPORATION PROPOSED

Evening Post, Volume CXVIII, Issue 94, 18 October 1934, Page 14

NATIONAL CORPORATION PROPOSED

READJUSTMENT OF PRESENT DEBTS

An exhaustive investigation of the problems of rural finance has been made by the Dairy Industry Commission, whose report was presented to Parliament today. The Commission investigated the various avenues of credit" available to the farming community, both long-term and short-term, and pointed out some of the weaknesses which have been inherent in the policy of extending financial aid to the primary industry. The report of the Commission comments on the, weaknesses and inelasticity of the rural credit system, and examines the various mortgage systems which are at present in operation. It also probes the legislation which has been enacted for the financial relief of the farming community, and points out the advantages, as well as the disadvantages, of a continuance of the Government's enactments. Suggestions are made for amendments to the Mortgagors and Tenants Relief Acts, and stress is laid on the necessity for the unfreezing of mortgage finance. The ability of farmers to meet debt commitments is also examined, together with the causes _ of the financial embarrassment of members of the primary industries. The Commission's report states that, at least 50 per cent, of the dairy farmers of the Dominion are, in varying degree, unable at the present time to meet their financial commitments, and further expresses the opinion that 5 per cent, is, in the present circumstances, an excessive rate of interest to pay on farm securities. An examination is made of. various proposals for financial relief, including the suggestion of a guaranteed price, and this is rejected as inherently unsound. Finally, the Commission recommends the establishment of a Rural Mortgage Corporation for the purpose of reorganising rural finance at.the lowest possible rate of interest.