MODERN LEGISLATION

Manawatu Standard, Volume LV, Issue 90, 14 March 1935, Page 8

MODERN LEGISLATION

I CORPORATION BILL CRITICISED. THE FARMING VIEWPOINT An outline of recent legislation as it affected the farming industry and criticism of this and the Mortgage Corporation Bill were expressed at Feeding on Tuesday by Mr H. 0. Mellsop. president of the Auckland Farmers’ Union, who is at present on a tour of New Zealand endeavouring to bring before farmers what lie considers the dangerous trend of modern legisla tion. Mr J. H. Mason, president of the Feilding branch of the Farmers’ Union, was in the chair and there was an attendance of over two hundred, including several ladies. Introducing the speaker, the president said Mr Mellsop was one of the '■'live wires” of the Farmers’ Union in the Auckland province and the Dominion movement as well. Mr Mellsop had made a special study of the Mortgage Corporation Bill and Mr Mason looked forward to hearing Mr Mellsop’s considered opinion or the proposed Bib. At the outset, Mr Mellsop advocated the interchange of visits between members of the various executives ol the Farmers’ Union with a view to ideas being broadened and an endeavour made to gain the other person’s viewpoint. Dealing with the subject matter oi bis address, the speaker said be was addressing the gathering solely as a member of the Farmers’ Union and did not in any way intend to make any reference or call on the views of any political organisation or opinion. Of late, he said, he had been greatly perturbed qt the trend (if modern legislation, which mainly tended to deprive the farmer of his liberty. He was opposed to any form of Socialistic legislation in tills direction, tbo first form of which crept in ' quietly in the Transport Act. This Act. it was said, would help the railways to regain revenue and lower the maintenance* costs of roads, but it had done nothing of the sort—it had simply resolved itself into a maze of restrictions and regula tions in regard to transport licenses, etc., the net result of which had been to seriously inconvenience farmers in the carriage of their wool, stock and other goods. To illustrate Ills remarks, the speaker quoted several cases in which the regulations had caused annoyances and interference with tin - funnels' liberty. Mr Mellsop went on to deal with the Dairy Emergency Act; his remarks on this subject being reported elsewhere, following which he went on to deal with wliat he classed as the country’s most Socialistic •legislation, the Mortgage Corporation Bill. Not everything in regard to the measure could be condemned, said the speaker, for it would firstly relieve the indebtedness of the country and it would provide a safe outlet ior capital—much safer .than the individual lending to farmers as existent at present. It would, however, in Mr Mellsop’s opinion, prevent a further falling in interest in New Zealand, where it was still higher than in any other country. It would place interest rates in the hands 'of Capital’s representatives. The comparatively small sum of £500,000 was to be paid into the Corporation by private people, and those people would have a definite say in the rate of interest ruling in New Zealand as the bonds to be sold were always to be 1 per cent, lower than the rate of interest charged. Through the Bill the losses of the Advances to ■Settlers Department would be disguised to a great extent, but whether this would i>s a loss or not the speaker was not prepared to say. What, however, Mr Mellsop considered whs the most important point of all about the Bill was that the handing oyer of all these mortgages to a corporation was a complete betrayal of those who bad worked to establish the State Advances loans, the soldiers’ loans, and other State advances. It meant that the Government was selling these mortgages to a semi-private institution, and what consideration were the mortgagors going to get in tins direction? Speaking of the soldiers’ loans in particular, Mr Mellsop said the proposal should be fought to the last ditch as time was showing that the ex-ser-vicemen were now arriving at a stage where they needed more humane treatment than ever before, and yet the loans tli-ey had raised from the Government in good faith were being handed over to a cold, unsympathetic body. In this regard alone Mr Mellsop condemned the measure as one requiring the staunch opposition of all. RURAL FINANCE. Continuing, the speaker dealt with the researches that had been made in rural financing, mentioning among others Mr IV. J. Poison’s efforts, and claimed that the Mortgage Corporation Bill was directly opposed to what had been arrived at by those interested in rural finance. In certain matters and things budgetary control was necessary and useful, but the speaker saw no hope for the farming industry in legislation which promised to put a host of inspectors in power and an accountant or some other official in charge of his farm. If a farmer could not conduct Ins farm without budgetary control he was better off liis farm and giving a chance to someone else who could.(Hear hear!) Mr Mellsop went on to sav that the country could be put back on a safe footing without the stops now being taken, and in this connection he quoted the names of several eminent world authorities who were all urging that the finance of the world should be taken out of private control and devoted to channels where it would bo used for the good of the people. There was nothing wrong with the production of the world in any commodity—it was only the pipe of distribution that was blocked. If the primary producer could be put on his feet tiie depression would soon pass off by the farmers’ money being put into circulation again. Touching on the position as it affected other countries, the speaker stated that the London Chamber of Commerce and the Southampton Chamber of Commerce had both set up committees of the mostlearned authorities on economic subjects and both of them had returned findings that the country must take over the control of its own currency for its own purposes. Even scientists and economists themselves, however, the speaker added, were not always in agreement and the reason for this was that they all adopted the line of thought of the past —a time of scarcity and not a time of plenty like the present. Therefore, it was not inconceivable that the solution of the present problems would come from someone who was not trained in an economic atmosphere, but who had followed his own line of thought through channels of his own creation. As an illustration - of his point, the speaker quoted the case of the most successful bank in Soviet Russia which was being conducted and controlled by a manager who previously had had no banking experience and knew nothing of banking law. Further authorities were quoted by the speaker in support of his contention that currency control was the (solution of the present problems, this being a step that would obviate mortgage corporations, devaluation of securities and all the other steps that had been taken to deal with the slump as it affected New Zealand. The trading banks had done good service in New Zealand and it

was not of them that Mr Mellsop said he was speaking. It was to tho higher authorities who governed the control of currency in the country that the, speaker alluded. Under the present system of currency all those who saved and hoarded money were doing wrong, because their savings lowered the purchasing power of the community when there wan already insufficient to go round. All the foremost authorities on finance in the world were firm on the point that the currency lever would have to be dealt with and selfgovernment in finance gained with the best board of trade possible working in conjunction. That this would eventually come about Mr Mellsop feu convinced, and the sooner it arrived the sooner the world would be made a. safer and a more happy I” ace anc j youth given something to look tot ward to. . ~ After answering - some questions, chiefly relative to currency control, Mr Mellsop, who had been very attentively listened to, received the thanks of the gathering for his address, the chairman stating it had been'a pleasure and an education to those present to hear the speaker’s views.