HARASSED FARMERS.

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

HARASSED FARMERS.

BURDEN OF MORTGAGES.

INQUIRY BY GOVERNMENT.

COMMISSION APPOINTED.

[BY telegraph.—own

WELLINGTON, Thursd&j.

Dairy fanners in the Waikato and Taranaki districts have been asking for relief from some part of tho heavy financial burdens that they assumed in the years of high prices and abounding prosperity. Their difficulty was mentioned in Parliament many times during the recent session, and the Prime Minister was asked to establish a tribunal before which mortgagors and mortgagees could appear. Mr. Massey made it clear at the time that he could not interfere arbitrarily with private contracts, but ho undertook to consider the appointment of a commissioner to examine the situation.

It was announced to-day that Mr. F. W. Flanaghan, the Valuer-General, bad been appointed commissioner to make the inquiry. His order of reference is now beiner prepared.

Mr. Flanaghan visited the Waikato district recently at tho request of the Prime Minister to see what could be done for tho Distressed mortgagors, and lie reported on his return that he had been ablo to adjust some individual cases where the mortgagees were prepared to make somo concessions in consideration of tho reduced prices of produce and the consequent reduced value of tho land.

Since then the Government has made provision for exempting from gift duty any amount that may be written off a morteage as a concession to the mort-

gapor. The business of the commissioner will be to make full inquiry into the situation and prepare a report for the Government. The farmors who are in trouble now are men who .bought their land in recent years at boom prices, and they_ are not covered by the ordinary moratorium law. In anv case they would not be helped very nruch by an extension of the moratorium. Their need is a reduction of capital values and interest charges to meet the conditions of to-day. The Government would not reduce mortgages compulsorily even if it had the power to do so since that would amount to a confiscation of a part of the mortgagee's capital, but it may provide on the recommendation of the commissioner, for bring-

ing the parties together.