RENEWAL OF FARM MORTGAGES.

Poverty Bay Herald, Volume XLIX, Issue 16211, 23 August 1923, Page 4

RENEWAL OF FARM MORTGAGES.

(Parliamentary .Reporter.)

CHMSTCHUKCH, this day

An important matter affecting fanners was brought up in the'report of the Agricultural Committee of North Canterbury executive of the Farmers' jUnion which was submitted at last night's meeting of the executive regarding the renewal of farm mortgages. The report was submitted by the chairman, Mr. J. D. Hall, who stated the committee had discussed the question of the method that should be adopted in con-nection-with the renewal of farm mortgages, and it had been thought desirable that negotiations should be entered into between representatives of the Union and representatives of the legal profession, and of the leading Departments of the Government, with a view to arriving at some uniform method in respect of rates of interest, terms of mortgages and other matters. Tho chairman said that they must recognise that the prospects for the establishment ot the Agricultural Bank were somewhat remote. One of the essential condition? of that proposal was that tl*e Government should guarantee the bonds which were to be issued, in respect of farm lands. That had been all right until they got to tho Government, which did not see matters in the same light as the promoters of the proposed legislation. He Mas of opinion that it would be some considerable time before the movement advanced much further. I! had appeared to him that the limitation of advances to £3500 was hardly adequate to meet the requirements of fanners in this district, and that in the absence of assistance from that source, the present investors in farm indrtgugci should be the persons to provide I lie funds, but the question was whether the funds should bo provided under the old method under which the' individual farmer negotiated with the lender, or ins agent, or whether it should bo by negotiations on behalf of farmers collectively. The method might be all right if conditions were fairly stable, but there was considerable change in matters, and changes were likoly to come into existence in the near future. He thought it would be better if negotiations wero opened up on behalf ol farmers collectively. Ho had put the position in regard to tho Advances Office and the limitation of advances before Mr* Massey, and had asked if it would be 'possible to use other funds under the control of tho Public Trustand the Government Insurance Commissioner to make advances beyond the £3500 limit. Mr. Massey had 'replied: "I shall be glad for the Public Trust and the Commissioner of the Insurance Department to meet farmers' representatives to discuss these matters." If that were the j case'it seemed that the present was a; good opportunity to appoint rcpresenta tives of the Farmers' Union, and to arrange with other organisations like the Sheepowners' Union, also to appoint re presehtatives to meet the Public Trustee and the Insurance Commissioner. Ik did not think it could do any harm; it might do a substantial amount ol good. Ho did not see how tho individual' farmer Mas going to have a fair run when he was out to re-arrange his finances in such a critical position as things were at present. A great many of those who had lent money on farm hinds were .contemplating asking farm ers to reduce Iheiij loans. This meant in respect of advances made When, possibly laud values were more stable. Perhaps it was not worth more, but it was thought to bo worth more than it was to-day. When it came to renewing them, that tho fanners, unless in very exceptional circumstances, might be faced with, the request that tho amount be reduced by 25 per cent. It was a pretty serious matter for tho farmers, and it had to bo faced as there were quite reasonable prospects that the post tion as he had put it would eventuate. As far as farmers were concerned, hi; idea was that they should appoint representatives to discuss the matter with lenders and heads of the Government lending departments, whom Mr. Massey told them were prepared to discuss it with them. The report was adopted, and effect will be given to Mr. Hall's suggestion by the executive's general I committee.