Distressed Farmers

Manawatu Times, Volume LVI, Issue 6519, 7 April 1931, Page 8

Distressed Farmers

ATP IN SOUTH AFRICA. LOANS FROM THE GOVERNMENT. CAPETOWN, Feb. 10. The Government’s bill to help to tide the agricultural community over the present critical period of depression, provides for loans up to a limit of £IOOO secured on what immovable or movable property the distressed farmer mav possess. Such loans will not be advanced to the farmers themselves, but will be used to pay off their pressing creditors on the recommendation of the special board to be appointed. Applicants for relief must be Union nationals of good character who have carried on farming as their principal means of livelihood for not less than a year. They must show justification for having incurred debts, prove that they have no reasonable means of meeting their obligations, and that they are likely to suffer serious and irreparable loss unless such debts are paid wholly or in part. They must, also provide the security of a mortgage of immovable property or a mortgage of movable property, “of which the borrower is the owner, and in respect of which he has the right of use and disposal.” The loan shall bear interest at 6 per cent., and the period for repayment shall not exceed seven years. A significant clause states that any loan granted under this Act shall not be paid to the borrower himself, but shall be utilised to pay wth his consent and on his behalf such of his debts or part thereof as the board may determine on production of such proof of his liability therefor as the board may rcquire.” The chief criticism from the farming members’ point of view is that the bill proposes to do nothing for farmers whose position is already hopeless and who arc in dire need of a helping hand. The bill is interpreted to mean assistance for those farmers, who are considerd to b worth saving, but . those already bonded to the hilt will bo ruled out by the provision that security must bo forthcoming.