BELIEF FOR FARMERS

Manawatu Standard, Volume LV, Issue 87, 11 March 1935, Page 5

BELIEF FOR FARMERS

THE GOVERNMENT’S PLAN. OUTLINE BY MINISTER. Per Press Association. AUCKLAND, March 10. \ The efforts being made by the Government to rehabilitate the farmer were outlined by the Minister of Finance (Rt. Hon. J. G. Coates) when speaking at the Kumeu Show.

Dealing with the Mortgage Corporation Bill, the Minister said a good deal of criticism hail come from people who contended that the Bill would not help the farmer or reduce his load of debt.

“It should be made very dear that the Mortgage Corporation is only part of our proposals,” said Mr Coates. “The main purposes of the corporation are to provide finance at lower interest rates and to place mortgages on a sounder basis —that is, long-term table mortgage. In addition, the corporation will lend up to 80 per cent, of the valuation of property in any case where mortgage adjustments are being made. “The Rural Mortgagors Final Adjustment Bill, to be introduced on Tuesday, is perhaps the major portion of the legislation.” continued the Minister. “This provides: (1) That no competent farmer will be put off his property merely because the depression has reduced his ability to pay his debts. (2) No creditor can sue him for debt if his is a case of which the Adjustment Commission approves. (3) For a period he shall work with his income so allocated as to give him reasonable living expenses, working expenses, etc., the rest to go to the creditors.

(4) At the end of the period the property is valued mainly on its earning capacity to determine what amount of debt it can carry.

(0) The rest of the debt will be written off.

(6) That where it is deemed fair and reasonable an equity of up to 20 per cent, in the property may be given to the farmer. This does not mean that in every case 20 per cent, equity will bo allotted. Every case will be taken on its merits.”

Mr Coates said the whole proposal was designed to put the farmer on a sound footing where lie would he no longer in danger of being sold up. No longer would fp.rmers be losing heart in the lace of an intolerable debt burden.