FINANCING FARMERS.

Otago Witness, Issue 3612, 5 June 1923, Page 18

FINANCING FARMERS.

WHAT THE GOVERNMENT IS DOING. NO TROUBLE IN OBTAINING MONEY. (B’eom Oub Own Correspondent.) AUCKLAND, May 31. Referring to financial matters at the opening of the Waikato Winter Show, Mr Massey said the position in regard to the moratorium was not quite as serious as some people imagined. The moratorium would end next year, and he knew that a great many mortgages had already been arranged for. Fie would ask the mortgagee to meet the mortgagor in the matter. The Government could not interfere to tear up agreements that had boon made, but the golclon rule should be remembered: “Do unto others as you would be done by.” The Government was now able to lend through the Advances Department up to £2OOO to any settler to pay off old mortgages. It was not going to stop there. He was going to ask Parliament to raise the amount to £3OOO. The interest charged would be according to the rate at which the money was borrowed. If raised at 4j per cent, it would be lent at 5 per cent, only one-half pec cent, was chargeu by tne Government to meet the expenses of tne department. There would be no trouble in obtaining the money. A large sum was in the Advances Department ready for use, and much more would be available. He knew of two cases in which sums aggregating £I7OO had been lent, and the rate of interest had been 5g per cent. “We want to get to that stage when investors w'ill look on broadacres as the best possible security,” added Mr Massey amid applause. An experiment was being made in the Advances Department of lending up to £SOO on chattel securities. This was being done to assist farm workers and share milkers to make a start on the land. Referring to the efforts of the Valuation Department to make arrangements between mortgagor and mortgagee to enable the former to carry on, Mr Massey said that in this district such arrangements had been completed by the department in 150 cases. A reduction in taxation was forecasted during the coming session by at least £2,(X)0,0C0 a year. Referring to the Dairy Control Bill Mr Massey said that if the Bill were passed during the coming sea , ''>-n it would be because people connected with the industry wanted it. If they did not want it they should say so. -There was no political interest attached to it, but ho would like to have some expression of opinion from tho people most cncerned. A house divided against itself could not stand. He would like to see unanimity on the question. One example of the benefit of control could be found in the Meat Control Act. It had worked well. The board had done excellent work because it had not been pushed along too rapidly. A reduction in freights had been brought about, representing a gain to tho dominion of £578,000 a year.