THE MORATORIUM.

Otago Daily Times, Issue 19086, 4 February 1924, Page 8

THE MORATORIUM.

FARMERS’ DIFFICULTIES

EXTENSION OF TIME ESSENTIAL.

(From Oob Own Correspondent.) MARTON, February 3. Many farmers are greatly concerned regarding the' lifting of the moratorium. Discussing the position, the Hon. Edward Newman, G.M.G., M.L.C., and ex-member for Rangitikei, who is one of the best authorities in the dominion in regard to the manner in which the moratorium affects the farmer, pointed out in the course of an interview that the prospects for farmers were wonderfully good, and there was only the temporary shortage of grass which had brought down, temporarily, the price of sheep. What was now troubling sheepmen, particularly those in the back-blocks, was the prospect of the moratorium being lifted at the end of this year, the unfortunate fact being that many of them had not had time to recover from the losses involved by the slump. Indeed, it would take several years of the present high prices of wool to put the sheep farmers back into the position they occupied before the slump. “It is.” said Mr Newman, “not only the slump in wool, sheep, and cattle that the woolgrowers have had to contend with, but it is the deterioration in farms owing to their being unable to keep down the scrub and second growth, or repair the fences and buildings during and after the war. This has caused their valuation to be reduced so that, lenders fight shy of farm lands in the back-blocks as security for mortgages except on large margins. After the slump the valuations of all sheep country were cut down vigorously, and now financial institutions and others talk about only lending up to half of the Government valuations. Much good that will do farmers. The action of the Government in increasing the amount that may he advanced by the State Advances Department to £3500 has set free a large amount of money for in-' vestment, and part of it is now available for mortgage on farm lands, but there are many of our most enterprising and Hardworking farmers to whom £3500 is no use. They have mortgages of larger amounts J o provide against. If they can only ge' tim 3 . with the present prices for produce, they will come out all right, and so wll all the mortgagees, but the farmers cannot, do it by the end of the present year. Mr Newman pointed out what the result will be if the moratorium is not a tended over a large number of years. These farmers will have to throw up their farms and mortgagees will step in and reap a, rich harvest either by farming the land or by reselling. “I have always urged,” said Mr Newman. ‘ ‘that the whole cf the mortgages protected now should not be allowed to fall due at the same date. If it is not considered in the public interest to renew the moratorium. then it should be tapered off, either by mortgages being made repayable on different dates, or by a portion only of the debt having to be paid off annually, until a safe position is reached. If this is done it is believed that there will bo a verv small number indeed of farmers who will not make good in a few years.” Mr Newman held that Mr Massey had always proved to be a good friend of the farmer, especially back-blockers and the men farming steep, high country of which the North Island so largely consists, who were fighting against great difficulties at the best of times. These were the men who._ in spite of the high prices now being obtained for their wool, would have to go under unless legislation in the direction indicated was passed. “These farmers are not much represented on the Farmers’ Union.” remarked Mr Newman, “and. indeed, have not got manv influential friends anywhere, but after all. they are the real backbone of this country in so far as wool production is concerned. B would have been enough for ibem to fall owing to low prices, but it will bo infinitely worse if they have to pass out when prices are so good that it only requires a few more years to save them.” Mr Newman expressed the hope that the Farmers’ Union would represent the matter to the Minister at once, and not wajt until all the legislation for the session had been decided. It might be too late then.