EMBARRASSED FARMERS.

New Zealand Herald, Volume LIX, Issue 18018, 17 February 1922, Page 4

EMBARRASSED FARMERS.

The only possible justification for the action taken by the Government in regard to the financial difficulties of farmers, particularly those en-

gaged in dairying in the Waikato and Taranaki, is that it may prevent widespread disorganisation of an im-

portant industry and thus assist in maintaining production during a critical period. Those who have been representing the case for the em-

barrassed farmers during the last

few months admit that their difficulties are due to the inflation of prices of land and stock by reckless speculation, but they contend that in many cases the mortgagees share the responsibility for the overloading of farms with liabilities far beyond their earning capacity. The reaction was inevitable, and it has been precipitated and made more acute by the sharp contraction in butter-fat returns. It cannot be doubted that the country will be the better for the

restoration of sound land values, but the harshness of the adjustment may

be minimised if the parties actually concerned are prepared to discuss a

reasonable compromise. This has already been done in a number of

cases, both with and without mediation, with the result that fictitious values have been abandoned and interest charges have been brought within the capacity of the mortgagors. Wherever such mutual arrangements can be made, the interests of the mortgagee will probably be more effectively protected than if he resorts to the ordinary legal processes. Mr. Massey has very properly refused to place any restrictions on the powers of mortgagees, and it may be expected that this decision will be confirmed by the order of reference for the proposed commission. The position is therefore that while the services of an experienced Government officer are available in an advisory capacity, it remains for the parties actually concerned to make the best arrangements they can for the protection of their mutual interests. Such negotiations will no doubt be conducted with greater forj bearance and greater prospects of success where they involve the surrender of only " paper profits." while there are others in which a reduction in the rate of interest or the postponement of arrears will enable the embarrassed farmers to make a new start and eventually discharge their obligations in full. Readjustment by these methods will certainly bo .to the advantage of the country since it will ensure continued production from farms that might otherwise be abandoned and the maintenance of dairying herds that might otherwise be sacrificed.