LOANS TO FARMERS

Gisborne Times, Volume LXXXIII, Issue 12703, 7 November 1935, Page 3

LOANS TO FARMERS

LABOR LEADER. DOLEFUL OVER RECENT LEGIST ATI ON. ‘ NO IMMEDIATE RELIEF.” ‘‘SQUEEZING LAST OUNCE OUT OF INDUSTRY.” t-Pres.. Association.> WELLINGTON, Nov. G. Criticism of recent legislation in connection with financial assistance to farmers was made by Mr M. J. Savage, Labor leader,, in bis address at Wellington last evening. The Agricultural (Emergency Powers) Act, said Air Savage, provided fo 1 ’ a virtual dictatorship in the primary industries. The Executive Commission of Agriculture which had been appointed under tho Act had almost unlimited powers. The purposes of the Act appeared to be to squeeze the last ounce out of the industry concerned rather than to find means of paying for the increasing production which was already an accomplished fact. Tho Executive Commission of Agriculture, with a fairly substantial guaranteed price for their services and with the power of a Hitler, were at present engaged hi bringing the dairy-farmer up-to-date. The fact that the dairy-farmer had doubled his production in ' ten years without any increase in bis income was not seriously considered.

The Mortgage Corporation of New Zealand had been substituted for the State-lending departments, continued Mr Savage, and to the extent that it had co-ordinated those departments it was justified. But the introduction of private capital (£500,000), which was a mere bagatelle and only an excuse for drawing dividends, together with semi-private control, meant the end of Slate-lending institutions so long ns the present Government existed. The corporation was presided over by Hie managing director of WrightStophenson Ltd.—a competitive lending institution with mortgage interests all over the Dominion. JTo was also a director of other privatelycontrolled lending institutions. How could justice ho done by any person v/ith conflicting interests to serve? Tho policy of Labor was to place the Mortgage Corporation on a basis similar to the State Advances Department.

The Rural Alortgagors Final Adjustment Act provided no immediate relief for farmers in difficulties. It completed the dictatorship provided for in the Agriculture (Emergency Powers) Act by placing all those seeking relief under direct supervision for a period of five years in order to provide a basis for valuation for the purpose of readjustment of equities in the securities involved. During this period the farmer will he subjected to budgetary control of a type apparently similar to the inquisitorial methods of the Unemployment. Board in dealing with , relief workers. If a. farmer happened to have a wireless set, decent furniture, or anything else that .might make life worth living, be would he treated as the relief worker was to-day.