AID FOR FARMERS

New Zealand Herald, Volume LXXV, Issue 23067, 18 June 1938, Page 18

AID FOR FARMERS

CHEAP MONEY POLICY GUARANTEE AND SUBSIDIES PRIME MINISTER'S CLAIMS [BY TELEGRAPH —-PBE.4S ASSOCIATION] DANNEVIRKE, Friday Speaking to a large and enthusiastic audience in the Dannevirke lown Hall, the Prime Minister, Mr. Savage, replying to a civic welcome, dealt with the assistance given farmers by his Government. He said it was a curious fact that the Government was being blamed for having loaded the farming industry with intolerable costs. Ihe charge was contrary to the truth, and he said without any fear of a valid challenge that the Labour Government had already done more for the farmer than those administrations which they knew as purely fartpers' Governments. The Government's policy of cheap money had been of immense value to the farmer, said Mr. Savage. Two years ago, on July 7, 1936, lie had said that the day of high interest rates had gone. How had the farmer fared as a result of that policy in practice? Today more farmers were getting cheap mortgages than ever before. For every six farmers with mortgages at 4J per cent in July, 1935, to-day 26 farmers were receiving the benefit of that cheap rate. Saving In Interest Rates It was the Government's deliberate policy that was keeping interest rates low. If the Government had consented to raising interest rates to local bodies all interest rates would inevitably have been driven higher. The saving in interest rates on new farm mortgages registered last year meant a difference of £183,400. On all farm mortgages (at nresent £135,000,000) as they fell dup for renewal, the saving was at the rate of £2,360,000 a year. The Prime Minister said the Government was doing everything possible to expedite mortgage relief. Farmers who were still oppressed by excessive mortgage debts should remember that the present Government did not put the financial yoke around their necks. Ihe cheapening of borrowed money was not the only benefit the present Government had given the farmer. Substantial assistance had been given in the form of increased subsidies. Guaranteed Price Policy In regard to guaranteed prices to the dairy farmer, Mr. Savage said, it had been asserted without any proof at all that the gain had been swallowed by increased costs. Every farmer knew that such an assertion was very wide of the mark. As a result of tho Government's policy of guaranteed prices the dairy farmer to-day was enjoying a' better standard of comfort and a firmer measure of security than he ever experienced before in this country. There could be no valid objection to the principle of the'Governmeiat'fl guaranteed price policy. The only complaint might be as to the adequacy of the price. "I have already said the Government is prepared to give tho fullest consideration to the complaint." said the Prime Minister, "knowing that no better alternative to the Government's formula for fixing prices is available. The desire of the Government is solely to give the dairy farmers a fair deal. The guaranteed price system is the greatest boon ever given to the dairy farmer in New Zealand's history."-