FARMERS’ PROBLEMS

Evening Star, Issue 18331, 19 July 1923, Page 10

FARMERS’ PROBLEMS

A LUCID ADDRESS.

BANKERS’ STATEMENTS

MISLEADING,

NEW ZEALAND’S FUNDAMENTAL

ENTERPRISES,

FINANCIAL ACCOMMODATION

NECESSITIES,

[Pzu United Pkess Association.]

WELLINGTON, Jul.y 18. _ The annual conference of the Council of Agriculture was held to-day. In tho com so of his address, Mr J. D, Hall, president, referred to the cost of production. A statement in tho Budget said; “ Tho season has been an exceptionally good one for primary producers, be can so prices and production have been maintained and the quantity and value of our exports have been increased.’’ This no doubt was correct, but no ’notice had been taken of the other sido of the producers’ account, which showed that the cost of production had also increased, so that the. net result to the farmer was much tho same.

He. proceeded: “The, dairy farms'have increased the output of butter; but cheese, on tho other hand, has decreased in volnmo and value. But, on tho whole, (ho result of the year’s work on dairy farms, so far as output is concerned, is one which dairy farmers may bo proud of, and it is to bo hoped that the value of their produce will lie maintained, it is desirable to emphasise the; importance, of developing an efficient system of herd testing, and that increasing war ..honbl he waged on the scrub bull and tho robber cow, which are a most obnoxious pair and a great handicap to industry. WOOL IMPROVEMENT. “Nothing could have boon more opportune for those who survived tho disastrous efleets of tho depression of 1920-21 than (lie improved prices for our rum! for last season. Though tho increase in the amount exported cannot bo the result of an increased clip, seeing that tire number of sheep decreased, the substantial increase in valuiw is a mailer to bo grateful for, and as the prospects are still good it is to be hoped that wool growers will strive to increase, their flocks, improve the quality of their clip, and co-operate in tho matter of transport and marketing their wool. They might also study the question of conversing it into “tops” in New Zealand, and thus avoid paying freight on all dirt and grease. -MEAT EXPORT. “In the export of lamb a substantial improvement is shown, as to both volume and value, and it is interesting to notice that fanners are now jotting a larger proportion of the London wholesale prices than in previous years. Whether tins is duo to the existence of the. Meat Board or to general shortage of lamb of the class which wo export, it has certainly been the cause of a substantial increase in tho returns to New Zealand growers. The prospects, so far as tho export of beef is concerned, are not bright, but, on the other hand, they are not by any menus hopeless. Special methods Lu - freezing hr-ef are being tried, and, if satisfactory, will enable our good beef to go to Europe and compote favorably with tSi at from Argentina. The export of indifferent quality will hinder rather than help beef producers. FARMERS’ FINANCE. “It is desirable to say a f cw words regarding farmers’ finance generally, and in particular as to fanners' mortgages now euneut, many of which are subject to 11 in protection of tho moratorium. Of the £240,000,000 of mortgages registered in New Zealand, it is roughly estimated that about £50,(XX),000 is the face value of mortgages for which provision has to be made, at tho end of next year, and it is believed (bat tiro greater part of this amount is lent by New Zeaian 1 investors, and very little cornea from abroad. Tire problem is: (1) To satisfy these investors that the security upon which their money has been lent has not depreciated to such an extent as to justify withdrawals if these Joans, and (2) to obtain reinvestment of these moneys on reasonable terms. As to the rales of interest, it seems as if tho chairman and ex-chairman of directors of the Bank of New Zealand are doing their best to destiny the confidence of these investors by indulging in generalities as to New Zealand farm lands being overvalued. They are probably right as to some classes of land which have been the subject of over-speculation, but it is very unfair to the farming community generally and misleading to investors. It amounts to this: Tho basis of the business of New Zealand, is tire production, distribution, and marketing 1 of agricultural and pastoral commodities, and tho financial machinery lias got to be designed and organised properly to accommodate this fundamental enterprise; and its aim should be to harmonise tho system with the present process. Idle, farmers want file help and sympathy of tho banks in the matter, of arranging (heir mortgages, and it seems to bo lime that bankers, merchants, and chambers of commerce .should join hands with the farmers in a solution of their problems. Failing any satisfactory arrangement with tho present investors in farm mortgages, there appear’ three alternatives which might bo adopted to provide for these mortgages: (J) That the Government should extend the accommodation provided through the .Advances to Settlers Department, and, further, substantially increase the amounts of loans; (2) the appointment of a board of valuers by the. Government and the issue of Government debentures up to 60 per cent, of tiro ascertained values of any farms, on lire same terms as to interest and payments as in loans by the Advances Department; (3) the formation of a Fanners’ Land Mortgage Association, which should arrange that its fanner members should assemble their securities, and jointly pledge their credits to a substantial extent for the purpose of getting tho investing public to buy the bonds of tiro association, and thereby provide funds to advance to its members; and that the State should, to some extent, guarantee such advances and assist in the initiation of tiro scheme. GENERAL BUSINESS.

On the motion of Air D. At. JPLean (Masterton), it was resolved—“ That now that the country is in a better financial position, tho Government lie urged to adopt a more progressive policy in regal'd to training future farmers.” Mr M'Lean said that a visitor had stated that one could see a racecourse every fifty miles Imt, not a single agricultural college in the North Island.

Remits were carried empowering the, executive to proceed with the formation of the Royal Society’s first show, tu be held in Palmerston North, and the second at Christchurch. Charter donations of £I,OOO each had been promised from Messrs R. D. M’Lean and W. D. Hunt, in addition to a similar sum already promised by Sir Walter Buchanan. In regard to local body loans on debentures, the executive had considered these, and it was considered that the low taxation operating on such investments diverted tho moneys which ordinarily would bn lent on first mortgage on farm properties. Tho fact that the interest on morlgaces was taxed up to the maximum of 7s" 4d in the .£ precluded farmers from obtaining the, financial aid necessary to the development of the country. A remit was passed that (ho Government should give serious and prai Gcal consideration to a drastic cut in the railway freights, as such would tend to reduce heavy lorry traffic, which is doing so much more damage to the main roads. —Sir James Wilson said that they would bo surprised at the amount of overloading on four-ton waggons carrying sixton loads, which did tho most damage to the roads.

A protest was made against the heavy taxation, which was crushing tho primary industries*

It was also stated that the published remarks of Sir Harold Beauchamp and Sir George Elliot, that tho land of Now Zealand was over-valued, were doing harm (o the dominion in destroying public confidence.