TO HELP THE FARMERS

New Zealand Times, Volume XLVIII, Issue 11046, 1 November 1921, Page 4

TO HELP THE FARMERS

£3,000,000 LOAN PROPOSAL DISCUSSED BY CENTRAL CHAMBER OF COMMERCE. SUGGESTION TO THE GOVERNMENT. The proposal advanced at the annual meeting of the Central Chamber of Commerce last week by Mr C. B. Buxton, that a special loan of £3,(XX),000 be raised for the purpose of advances to farmers, on the basis of a sliding scale of interest, was further discussed at a special meeting of the chamber last night. Mr Buxton spoke at length at the annual meeting. In extension of liis remarks on that occasion he stated that lie had secured the advice of eight i solicitors and lending institutions upon his scheme. The solicitors he had approached intimated that there was no chance of securing money on mortgages. ' That should show clearly there was a definite shortage of that class of finance. Personally, he believed that if a smash occurred amongst farmers the general public would feel the effect very severely. As a matter of business, the chamber should, therefore, see the producer through, and that the products of the country suffered no reduction. POSTPONING THE EVIL DAY! Mr L. A. Edwards -said that, looking at the matter from a point of equity, if the chamber was to give its assistance to the fanners it could not refuse a similar request from the commercial community. The soldier, farrier stood in a category that was entirely different, and they were in honour bound to see him through, even at the cost of some loss. The commercial man had suffered, and was still suffering; the farmer was in fexactly the same position. The fact that only' about one million more money had been deposited with accounts during the last quarter than had been withdrawn proved there was money in the country. A loan, in his opinion, would only postpone the evil day, and the evil day would, unfortunately, be inevitable it© many. Be contended that the economic conditions precluded: any possibility .that any of the lending institutions would lendl money at 7 per cent. He sympathised with any endeavour to -assist the farmery, but the economic position made it impossible to put matters right by any method they could devise. INFLATION OF LAND VALUES. Mr H. 3. Haxt said, that if economic loss were allowed to take their natural course they would more quickly arrive at a genuine solution of the difficulty. He was doubtful whether Mr Buxton’s proposals would result in _ any benefit. He regarded as an infinitely greater danger the inflation of land vahies, which van still continuing. Any further borrowing te assist the primary producer ;musb tend, if not to increase land values, to at least maintain. then#' They wanted to get at the real value of products, commodities and land. That was the crux of the whole financial situation. He- would hesitate in supporting any course that might tend to increase the liabilities of the country—anything that would depreciate present land values, whether actual or neal. More immediate relief would-be jiriven-by-raising loans, for developmental work to relieve unemployment. FJiRMERF HIT HARD. The president (Mr A. L. Hnnt) said he would'never be a party to a gamble.. The farmers’ had been hit by compulsory loans and taxation, and had been working on an overdraft. He believed they absolutely could not get money to-day with which to work their land. He doubted if money raised in London at 6( per cent, could be got out to New Zealand at 7 per cent. The expenses viooSd be more than J per cent. He did mot agree with the plea that the cases of the farmer and the business man were analagons. Mr Buxton said that bis original motive wap to lo away with the moratorium. ' His scheme did not involve any risk to the Government, and he was convinced that if it was adopted it would have an easing effect on the banks. ' - Mr 11. O. Oxley suggested that if a Government-guaranteed loan were raised in New Zealand and the interest paid monthly, a large number of small investors might be induced to subscribe. Mr Buxton thought that such a proposal would be hopeless, especially in view oJF the fact that the amount subscribed to the returned soldiers’ loan hfid fallen. £1,500,000 below the mark. AMENDED MOTION PASSED. After further discussion the motion was- amended and adopted in the following former- “ That this chamber communicate with the executive of the Associated Chambers of Commerce and the executive of the Farmers’ Union with a view to holding a conference to urge upon- the Minister for Finance the very serious financial position of farmers owing to the fact that there is an acute shortage of mortgage moneys for country investment and tee benefits that would accrue if the Government would Borrow forthwith a sum of, say, £3,000,000 and advance this money as fust mortgages on forms showing twofifths: margin on a valuation made for mortgage: purposes by a Government vatuer.”