CROWN TENANTS

Southland Times, Issue 22076, 25 July 1933, Page 12

CROWN TENANTS

NEW ZEALAND ASSOCIATION, MONTHLY MEETING The monthly meeting of the Crown Tenants’ Association took place in Timaru last week, when the following delegates were present:— The President Mr D. C. Kidd in the chair and Messrs Bell; Reid and Moyle, Waihoa Downs; J. J. Gregan, and M. M. Duffy, Teschemakers; C. F. Rose and Johnson, Hook; A. G. Morrison, St Andrews; Seivewrite, Washdyke; R. Henderson, Lawlor, Pleasant Point; E. R. Goulter, and Mackintosh, Fairlie; H. G. Hanmer, Albury; R.W. Wightman and C, W. Markham, Secretary, Orari Gorge. Correspondence was read from Hon. J. G. Coates, Minister of Finance. This letter was in reply to a remit passed by the last conference, asking the Government to pass legislation to compel a 50 per cent, reduction on interest charges, mortgages, and current accounts.

“The position of farmers with the present prices of primary products is fully realized by the Government, but even so it would be grossly inequitable to make a compulsory reduction of the magnitude suggested. By means of the conversion operations and every other method within its power, the Government is endeavouring to bring down market rates of interest on a sound basis. Arbitrary action as suggested, however, would utterly destroy the confidence of investors and in the future the necessary capital for carrying on industiy would only be obtained at very high rates of interest. “In this connection it should be realized that, while it is possibly within the powers of the legislature to inflict heavy reductions in the rate of interest on existing loans, people cannot be compelled to save, and if the incentive to save money is destroyed or seriously weakened, the result would be disastrous from all points of view. “Accordingly the Government _ can not agree to give effect to the remit in question as it is not in the real interests of the farmers themselves or of the Dominion as a whole.” Whilst somewhat disappointed in the reply some members remarked that banks had reduced the interest on. deposits so this could be taken as a move in the right direction.

A letter was also read from Hon. E. A. Ransom asking for definite particulars regard abandoned farms in South Canterbury district. The . secretary read particulars of some eight farms which were a fair sample of abandoned farms on the poorer ‘Foot Hills Country’ most of these farms having caused the ruin of at least three good farmers, and the approximate amounts lost by these men were included in the report forwarded to the Minister. In some cases the losses were treble the value of the land. The Minister was also asked to consider the establishment of a demonstration farm on some of the most suitable of these abandoned farms, to prove whether it is really possible to work this class of land on a profitable basis. At present many of . these farms are a snare and delusion to prospective farmers. On this and other pressing matters such as Budget Reform, Security of Tenure, etc., the secretary was instructed to write to the Minister asking him to meet Crown Tenants in Timaru and Ashburton on the occasion of his visit to the South Island in about a months time. Remit No 2. Regarding Expenditure of Public Money.—lt was resolved that this branch of the C. T. A. protests strongly against proposed expenditure of money on Public Works now authorized by the acting Prime Minister and considers it an unsound policy in view of the hopeless outlook for its primary producers. Much discussion took place and delegates’ opinions seemed to be somewhat divided. It was stated that the money was being borrowed at not more than 4 per cent, and it would find employment for many, and put money into circulation, doubt being freely expressed by others as to whether some proposed works could not wait till after the depression, and would these projected works pay then’ way. Works like the finishing of the Waitaki Hydro Electric were thought necessary, but some delegates were of opinion that it would be best if the Government issued its own money based on the total cost of the works and paid no interest to anyone. A cutting from the Herald of July 15th quoted Mr Walter Runciman President of the Board of Trade as saying . . . “Tire Government of England had spent £100,000,000 on public Works to relieve unemployment during recent years and the policy had been a bad one, and from his experience on the matter he would not. recommend other countries to do likewise, as it was a most unremunerative way of dealing with the unemployment problem.” It was decided to defer the matter till the next Dominion Conference to get the very widest view of the subject.