No Moratorium

Manawatu Times, Volume LV, Issue 7413, 22 December 1930, Page 7

No Moratorium

Acting Premier's Pronouncement

EXPERTS WILL REPORT ON POSITION WELLINGTON, Dec. 20. Hon E. A. Ransom, acting Prime Minister, to-day issued the following statement:— ‘‘The Government has had under consideration tho general position of tho country in all its aspects, and while it recognises the grave difficulties ot tho situation, duo to circumstances and conditions perhaps unprecedented in the history of New Zealand, it deprecates any attempt to exaggerate the position or to stampede the country into nasty and ill-considered solutions in tho first place on two questions that have excited discussion in the Press and at conference, and even elicited tentative pronouncements from jmblic men, namely, the fusion of political parties and the formation of a national Cabinet and the early summoning of Parliament.

‘‘Cabinet feels that these are matters that must await tho return of tho Prime Minister, who is entitled to a dominant voice in their determination so far as his Government and political party arc concerned. Then, in regard to the demand for an immediate assembling of Parliament, the Ministers do not consider this step cither necessary or wise at this juncture. I have recently announced the view of Cabinet, and tho Prime Minister has definitely declared from England that a moratorium is undesirable. These views aro supported by tho State Loan Departments, which provide nearly one half of tho total amount of finance for the farmers, and who say that there is not at present such a pressure from their clients as would justify the application of a moratorium, even if that kind of remedy were desirable, which, they emphatically deny. The Dairy Industry. ‘‘The Government, thinking that a diagnosis of the condition of each section of industry was necessary, and that it should bo carried out in a sane and practical way, as a beginning approved of the setting up of a committee of experts in tho dairy industry which would determine the extent to which that industry is embarrassed, and suggest tho form of assistance required. ‘‘The trouble may be far greater than is realised, or much less than .general statements make out. It is recognised to be serious enough owing to tho severe fall in the price of dairy produce, but tho perturbation of many dairy farmers may rather be in anticipation of the effects upon their finance and holdings of the slump in prices than in consequence of extreme financial pressure applied by mortgagees. ‘‘The committee suggested to investigate the condition of the dairy industry "ill consist of men who arc intimately acquainted with tho position of the dairy farmers in their respective districts. The Department of Agriculture is getting into touch with men whose names have been suggested. The committee will be asked to meet in Wellington early iu the New Year ana to carry out its investigations with all dispatch. It is hoped that on the Prime Minister’s return the actual position, with Cabinet recommendations, will be ready for action. Those in tho pastoral industry have made no direct approach to the Government for assistance. The Government took tho precaution a month ago to consult with tho Government directors on tho Bank of New Zealand, who advised that not (July was a moratorium undesirable, but also unnecessary at present. The Banking Figures. ‘‘The Government gathered that although tho banking figures showed the strain on the resources of all banks, accentuated in cases by the greater financial difficulties in Australia, all possible steps were being taken to maintain the strength of mercantile

firms and station agents to support landowners and to assist farmers whore they had exercised care and economy in tho management of their farms. The. Government recognises, as well as the heads of financial institutions and business men, that farmers who over-reach-ed themselves in tho purchase ot estates or in expenditure and have had difficulty in normal times in meeting current obligations will experience extreme hardship. It is prepared to meet delegations of each branch of the industry, which should bo ready to state its actual and detailed difficulties and its suggestion for the minimum assistance required of the (State. Public Finances. “The position of tho public finances is appreciated by the Government and has been the subject of the closest scrutiny and consideration.

“Revenue has fallen in a much greater ratio than expenditure, due to the same causes that have affected all branches of the industry, and more especially the primary industries. The charges on the Consolidated Fund cannot within tho financial year be shortened to the extent that will make up the decline iu revenue owing to the heavy rigid annual outgoings for interest, pensions and special permanent items that are the accumulation of a generation of Parliamentary and Government action. In tho annual appro priations for services the first overhaul of the departments, made last month, at tho earliest available moment after tho close of the session, revealed the extreme difficulty in tho face of sectional demands by institutions and the public in curtailing, deferring or cancelling the expenditure of items voted by Parliament. ‘•The economies proposed in certain departments, such as defence and the working of tho railways, will not be materially effective within the financial year.”