POSITION OF FARMERS

King Country Chronicle, Volume XXIV, Issue 3239, 6 December 1930, Page 5

POSITION OF FARMERS

MEETING HELD YESTERDAY. • CAPITALISING INTEREST. A hurriedly-convened meeting of farmers of the district was held yesterday afternoon to consider the position that has arisen owing to the low values that prevailed for dairy produce and wool. Mr. A. Pettigrew was in the chair and Mr. W. J. Broadfoot, M.P., was also present. The chairman stated that the position of many farmers in this district, along with many others, was becoming serious, and the meeting had been called to discuss the situation and see if something could not be done to alleviate their lot. Mr. Hiorns said that unless something was done to prevent the present drift the farming industry in this country would be facing a serious position. Some weeks ago he had written to the acting Prime Minister, Hon. E. A. Ransom, suggesting that as a means of helping struggling settlers, payments due to the State Advances and other lending Departments of the State should be capitalised for the next twelve months. A reply had been received stating that the interest recovered from the settlers is required to meet the interest on the relevent loans, and if the suggestion were adopted a huge deficit would result in the public finances. For this reason the acting Prime Minister stated that he could not possibly entertain the suggestion. Mr. Hiorns continued by stating that the average farmer had no liquid assets. His farm was his bank and any money he possessed beyond his living expenses went on to the farm in the way of topdressing and other improvements. If his interest were capitalised for 12 months it would give time to review his position, but should he not get some relief many farmers would be swamped and a serious situation arise not only for himself but the whole country. Mr. Hiorns then moved the following resolution which was carried unanimously: "That in view of the present economic situation all over the world and particularly affecting this Dominion and this district in the Dominion, the New Zealand Government be asked to at once arrange powers to the Superintendent of the State Advances Department and other chiefs of Government Departments that accrued and accruing interest and principal repayments on loans be capitalised. -That a copy of this resolution be sent under a covering letter to the Acting Premier, the Rt. Hon. J. G. Coates Leader of the Opposition), and the member for Westport, Mr. Holland, as Leader of the Labour Party). Mr. Broadfoot stated that he would send the letter to the three members stated, but the suggestion opened up a very big issue. He said he fully realised the difficulties of the farmers, and how vital it was that he had cheap money. A meeting of over 1000 farmers was to be held in Hawera on the 17th inst to discuss the situation, and although it would be impossible for him to be present he felt sure that some good would eventuate from this meeting.