THE MORATORIUM.

Stratford Evening Post, Volume XXXXII, Issue 58, 6 May 1924, Page 4

THE MORATORIUM.

(To the Editor, "Stratford Evening Post") Sir, —As a great number of the farmers in this country are now confronted with the problem of re-fiu-ancing their farms, it is time steps were taken by the Government to prevent them being exploited by the mortgagees, as is happening to a number of farmers to-day. To explain my meaning, I will give one instance that has been brought under my notice: The farmer in question bought a farm five years ago at a little over £SO per acre, on which he paid £IOOO deposit, also cash for stock, implements. Qtc. In five years he has spent £BOO in improvements. During the five years the whole of his cash and any surplus over, interest payments and other expenses, have been sunk in the farm.

Being now compelled to re-finance, and unable to raise sufficient to pay off the vendor's mortgagee, the vendor compels him to reduce his mortgage and then raises the rate of interest on the bilance, rhorel y compelling the farmer to pay intercut .amounting to £3 per acre, or forfeit, the whole of his life's savings and remove to some town where it will take himself, his wife and children all their time to gain an existence. Unless something is done to protect thi s class of farmer we will find, within a year or so, a great number of our best farmers who have weathered the slump will be compelled to leave their farms. Reduction in taxation as carried out by the present Government brings no relief to this class c f farmer. In the case of the farmer quoted hi s reduction was under a shilling while a local publican received a reduction of £250 under the same Act. Another man with house and business property got a reduction of £4OO. He gave no reduction in rent to his tenants, but in some cases rose hi 3 already exorbitant rents, which reveals in no unmistakable manner that the muchvaunted reduction taxation proposals of our present Government are no panacea to assist the small farmer to meet the financial difficulties with which he is confr':n*ed to-day, 'vut rather the reverse.

I would commend the following suggestions to members of Parliament, both Reform, Liberal and Labor, whose desire i s to assist the man on the land: —First—That they differentiate in legal rate of interest chargeable on a raised loan and a vendor's mortgage. No vendor to be allowed to increase his rale of interest on unpaid purchase money as would increase the original amount of interest payable on the farm. No vendor mortgagee whose interest lias been paid to be allowed an order from (ho Court to sell up, or resume a farm or house property without recompensing the present owner by at least half of his money paid as deposit on the said land or bouse.

Another suggestidn that might relieve the Government Advances Department and provide plenty of money for the renewal of mortgages when the moratorium is IPed, would be to make all m;.ncy ad vanced v,r\ farm security free of income tax for live years, provided the rate of interest charged doss n:>t exceed SJ. per cent. Apologising for trespassing on your valuable space and also ÜBiii~ a nom do plume, as the reason is obvious.--! am, etc.,

MGRTCAGL'I '"S u ' BORER