FARMERS' FINANCE.

Manawatu Standard, Volume XLIV, Issue 762, 19 July 1923, Page 6

FARMERS' FINANCE.

MORATORIUM PROBLEM.

(Per Press Association.) WELLINGTON, July 18,

It was desirable, said Mr J. D. Hall, at the- conference of the Council of Agriculture today, to say a few wotds regarding farmers' finance generally, arjd in particular to fanners' mortgages now current, many of which were subject to the protection of the moratorium. Of the £240,000,000 vvorth of mortgages registered in New Zealand/ it was . roughly estimated that about £50,000,000 was the face value.of the mortgages for which provision had to be made at the end of next year, and it was believed that the greater part of this amount was lent by New Zealand investors, and very little came from abroad. The problem was (1) to satisfy these investors that the security upon which their money had been lent had not depreciated to such an extent as to justify tho withdrawal' of these loans, and (2) to obtain the re-investment of these moneys on reasonable, terms as to rates of interest. "It seems," said Mr Hall, "as if the chairman and the ex-chairman of directors of tho Bank of New Zealand were doing their ■ best to destroy the confidence of these investors by indulging in generalities as to New Zealand farm lands being over-valued. They are probably right as to some classes of land which have_ been subject . to over-speculation, but it is very unfair to the farming community generally, and misleading to investors. It amounts to this; The basis of the business of New Zealand is the production, distribution and marketing of agricultural and pastoral commodities, and financial machinery has got to be -designed and "organised properly to accommodate this fundamental enterprise, and its aim should be to harmonise the system with the present process. Farmers want the help and sympathy of the banks jn the matter of arranging their mortgages, and it seems a time when the bankers, merchants, and Chambers of Commerce should join hands with the farmers in the solution of thqir problems. Failing any satisfactory arrangements with the present investors in the form of mortgages, there appear/ to be three alternatives which might be adopted to provide for these mortgages: (1) That the Government should extend tho 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 the ascertained values of any farms, on the same terms as to interest and repayment as in loans to the Advances Department; and, (3) the formation of a Farmers' Land Mortgage Association, which should arrange that its farmer members should assemble their, securities and jointly pledge their credit, to a substantial extent for the purpose of getting the investing public to buy the bonds of the 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 the scheme."