FARM MORTGAGE PROBLEMS

Hawera Star, Volume LIII, 27 September 1933, Page 10

FARM MORTGAGE PROBLEMS

SUGGESTIONS FOR RELIEF. MR. C. A. WILKINSON’S SCHEME. ADDRESS AT OTAKEHO. Members of the Farmers’ Union at Otakeho were addressed by Mr. 0. A Wilkinson, M.P., oil the subject of mortgage pi’oblems and his scheme lor relief to farm lands. There was a good attendance. A number of questions were answered by Mr. "Wilkinson. Mr. E. R. Putt was in the chair and welcomed the speaker. Mr. Wilkinson prefaced his remarks by stating that he had kept in touch closely with the larger affairs of the country and the Empire and had strong opinions on these questions. In his opinion one of the most important matters needing consideration was that of mortgages and interest rates. He had put his scheme before the Farmers’ Union in North Taranaki and at the executive meeting in Wellington and apparently it was considered too revolutionary for them. But he believed that the times needed something drastic, because when the farmer was in a bad way everyone! else t was suffering. This was indicated by the number of problems against which the people '.generally’, were struggling.. ■ • Mr. Wilkinson' said the farmers were competing in the world’s markets with people of other countries where the farmers paid little or no interest or rent, and therefore they needed relief. His proposal was (1) to free all farm lands from mortgage liability, both of capital and interest, and that no mortgage liability should in future he allowed; (2) that all farm land over a reasonable amount should be resumed bv the State for settlement am? «c quired on the basis of the reduction made through the abolition of inort gage debt. These steps would, he considered, place primary producers in a position to compete with the world and would serve to rehabilitate the country. He proposed also to bring land and money values into line with production and to base the value of mortgages on the average export values of produce at the present day. The State would take over the whole of the liability under the mortgages by issuing State bonds for the amount. An estimate of the interest on this amount was £6,000,000, and he proposed to meet this by an income tax on farmers’ profits,' a sales tax on all produce or stock, and the balance, if any, by general taxation. No loan would be raised, but credit would be created by these bonds. In his opinion this scheme would free the people and the country from the nightmare of moregage tax and the business firms would be secured oi their trade debts, , because farmers would be able to pay them instead of having to hand over most of . their income on interest payments. The farmers would also be able to effect improvements on their farms and to make more purchases, and thereby to make an imrriediato and beneficial change in trade conditions, providing for new and further employment and a transformation of the outlook of the community. A voice: You’re betrer than Mr. Oavey. Mr. Wilkinson: I can see daylight by cancelling impossible debts. ” He added that he would provide foi possible hardship on small mortgagee;.vho might be unduly affected. Mr. Wilkinson said that the war debts were of such a staggering amount mil so unfair and inequitable that they could not ever, nor should they, >e paid Ho considered there was no ither way of saving the world. The mly way to secure the conditions hoped for was to create or evolve a >ublic opinion in the Dominion and in he world. In the course of his address Mr Wilkinson affirmed that he had opposed the Coalition Government because, among other things, it .would not reduce interest and rent rates lie had been elected to the 'ommittoe set up to make suggestions for a solution of the troubles and he drew up a report of his conclusions. Curiously enough, practically all of his j suggestions were adopted later by the J Government—reduction of interest rates and rents, control of new coin age (the country to get the profit), tin power to write off loans instead of idling up a man, and to make the | mortgage rate 3 per cent. | Mr. Wilkinson referred to the quota.. and said that in his opinion Jins was | inevitable, .because England had to develop her farming industry. He -spoke of the unfairness of giving Australia in advantage of 25 per cent, on her industry, so that she could compete unfairly, in such a business as steel girders, with the Mother Country. In conclusion he said he had urged

in the House that a full inquiry should be instituted into the credit system, and he’ was convinced that much good might thereby be accomplished. ; Answering a questioner, Mr. Wilkinon said that it was not right that one man should have an unreasonably large area, of land, and that if a man bought land at too high a figure and paid cash for it lie should consider ho surplus amount just as a bad debt in business. He said also that no man should be allowed to buy land at a ■iah. value and pledge the land for a balance owing. He considered therefore that it would be far better if in such a ease a man was prevented from j buying. The land must be valued 'always on what "it could produce by legitimate fanning. Answering . a further question, Mr. Wilkinson said that South Africa had recently instituted a scheme similar to his own, but ho considered his was the simpler. Curiously enough, he added, the farmers gavo ( him the least support, and unless that was secured In. could not see any result from the scheme. In regard to international trade, Mr. Wilkinson said that no nation could sell to another without buying from the other country in return. On the motion of the chairman a vote of thanks was accorded Mr. Wilkinson in appreciation of his address and the amount of time and thought put into his scheme.