FINANCING PRODUCTION

New Zealand Herald, Volume LXI, Issue 18730, 9 June 1924, Page 9

FINANCING PRODUCTION

NO HELP IN MORATORIUM.

EXTENSION OPPOSED,

DAIRY FARMERS' UNION VIEW.

MANY ADJUSTMENTS MADE.

The views of the Dairy Farmers' Union on the question of the moratorium and the relief of farmers financially embarrassed have been expressed by the secretary, Mr. J. C. Wynyard. Referring to the suggestion made to the Prime Minister by Mr. A. E. Fear that the termination of the moratorium should be postponed, Mr. Wynyard states that tho telegram was not sent on hebalf of the Dairy Farmers' Union, and that this body accepts no responsibility for the statements it contained.

Sir. Wynyard , writes: —"My union recognises that the moratorium was a war measure and that its continuance much longer cannot bo justified; that by this time all those who are in a position to weather the storm of hard times, following after the previous boom in land values, have had ample time to make the necessary financial arrangements to meet the lifting of the moratorium, and that the extension of the moratorium will not assist those who are so financially embarrassed that they are on the verge of walking off their farms. Cheaper Money Needed. "It is an undoubted fact that many farmer's have lost all their capital by the fall in land values coincident with the fall in the value of farm produce, and it is difficult to imagine how men so situated could have been helped to weather the storm. Possibly, through no fault of their own, their position became economically unsound. The expenditure on the farm was greater than the revenue, and sooner or later the crash came. In many cases the mortgagee met the situation, and, as a matter of business it paid him better to write a considerable sum off his mortgage in order to give the farmer a chance of making good and so meeting his interest charges. Certainly, no mort- ! gagee who is not in a position to farm wants a farm on his hands which he cannot sell, and so, in the six years since' tho war, mortgagees and farmers have sorted things out to a large extent and the mortgagee has been a loser. There are, no doubt, still cases hanging in the balance, and many positions might bo saved if- cheaper money was available •to producers and this is the important matter, not the lifting of the moratorium.

Confidence and Security. '"My union is fully aware of the necessity of offering sound security to lenders, whether private individuals or Government departments, and the retention of the moratorium will have the reverse effect to restoring confidence. The high price of land has been quoted as the cause of many failures. While this is, undoubtedly, the cause in many cases, high cost of living and high cost of production, consequent on the higher cost of all farmers' requirements, and the fall in the value of produce have equally assisted toward the present position of dairy farmers. My union is out to assist in the reduction of the cost of production and to improve the selling conditions of dairy produce, and this is a matter of Dominion importance, for, in a, country such as New Zealand, if we can make the primary producer prosperous the whole Dominion prospers. Elements of Success.

"In conclusion, I would like to say that land must be valued, by the farmer and mortgagee alike, at its producing value, but that it is worth what it can be made to produce, and with sufficient capital at a cheap rate an intelligent farmer can still make good, provided he has not too much land and has sufficient capital and labour to work what land he has. There are a number of farmers possessing a valuable asset in their farming experiences and industry and some means must be devised to give these men a fresh start in farming and so prevent them from drifting to the towns, and that speedily. Should it be a Government scheme or can some of our friends in the towns offer suggestions to this end ?"