FARM FINANCE

Evening Post, Volume CXXX, Issue 16, 18 July 1940, Page 12

FARM FINANCE

MORTGAGE PROBLEMS

RELIEF DURING WAR YEARS

SYSTEM IN FORCE

Several remits relating to. farmers' finance, particularly during the increasingly difficult war period, were discussed at the annual conference of the New Zealand Farmers' Union yesterday, and the Government is to be asked to see that farmers are not embarrassed by mortgages or leases falling due during the war, with resultant serious interference with maximum production. The provision of liberal and cheap finance in approved cases to encourage development and more intensive farming of certain areas was also urged. It was pointed out that already a wide degree of protection was given to farmers, but that a number had not availed themselves of it, through failure to appreciate what was required of them in the statement of their positions. Such farmers could have been assisted in their difficulties if they had discussed their problems with officers of the union or its branches.

Farmers were in many cases producing at below costs under the general war commandeer of produce, said Mr. G. L; M. Coop (North Canterbury). They were ready to assist the war effort and to meet fully the requirements of Britain, but the relation between costs and prices gave no opportunity to build up reserves to meet mortgages falling due. . No farmer should be placed in difficulty, so "far as his mortgage was concerned, providing that he was carrying out his part and obtaining the maximum from his land, said Mr. A. M. Carpenter (North Canterbury). A farmer going on active service must feel that protection would be given. PROTECTION NOW ACCORDED. Mr. A. C. A. Sexton (Auckland) said the law today required that certain notices had to be served before a mortgage was called up, and the leave of the Court must be given before a mortgagee could exercise full powers. In this way the farmer was protected, but many men who had struggled, for years did not realise this when they had papers served :on them. Often they threw the papers in the fire arid gave up the struggle without seeking advice. Another delegate said quite a num•ber 6f farmers were leaving their properties because of ignorance. They were not aware that an order from the Court could not be obtained when a man was producing to the fullest exteMrP°WiblJ. Poison (Stratford) said that a moratorium existed for the duration of the war. In order to give financial assistance to farmers .legislation had been introduced recently. The State Advances Corporation had beeji empowered to take a short cut, as it were and provide financial assistance for farmers who wished to engage in increased production as a war effort. A subsidiary board had been set up and given power to make these_ advances to suitable people without referring the question to Wellington. Security would certainly be asked for, but the advances would be made mainly on an applicant's ability, character, and status with his .fellow-farmers. GUIDING PRINCIPLES. Every case would be treated on its merit, and the committee- would be guided by its. own common sense when making advances, Mr. Poison added. A man's fellow-farmers knew more about his ability' than an official sitting in an office. Certainly there was more risk attached to this scheme, but the Government had been persuaded to take that risk. The plan had succeeded in other parts of the world, and he was hopeful of its succeeding in New Zealand. The scheme . did not impose unnecessary barriers and enabled quick decisions to be made. In answer to a question, Mr. Poison, who was one of the advocates of the scheme, said the loan for raising a crop would be paid from the crop and would be a short-term loan. ' The committee ( responsible would decide as to the terms of the loans.

The Dominion president, Mr. W. W. Mulholland (Canterbury), said the scheme outlined by Mr. Poison was a genuine attempt to help farmers in their war effort.