MAINTAINING PRODUCTION

Taranaki Daily News, 14 November 1930, Page 7

MAINTAINING PRODUCTION

FARMERS’ FINANCIAL NEEDS. The opinion that the Government and not the investing public should be responsible for providing finance for farmers was expressed by the chairman of the Wairarapa Rural Intermediate Credits. Association, Mr. A. ,Ross, when addressing the annual meeting of the association at Master ton on Wednesday. “I think it will be readily granted that farmers of all classes are in for a bad time, and that the machinery of the Rural Intermediate Credit Association will have full sjfrfpe for its usefulness,’’ he said. “A generous supply of farmers’ finance will be the most important problem facing the Government and. people of New Zealand. No doubt the immediate future will try out to the utmost this new avenue of farmers’ finance. Will it stand the test? Will it be able to keep good men on their farms? Will it keep up production? Will it keep the land from deteriorating? Yes; ’but on two conditions—firstly, that the Government and not the investing public be responsible for providing the money, and secondly, that a more sympathetic and generous administration of the Act be giv “The value of live stock, especially sheep, has fallen so low that many would-be borrowers cannot get sufficient to pav off existing liabilities on the present percentage of advance allowed by the Act,” Mr. Ross continued. “It seems to me that when values are so low they are a very much better lending security than when values are at the peak and would justify a greater per-cent-go of advance. A danger to the farmer in the near future is that of sacrificing his stock to meet his obligations and when the rise in prices comes, as it undoubtedly will, he will be caught short and will not bo able to participate in the benefit to the fullest extent. Another bad feature .is that understocking means land going back and production decreasing, with detriment to everybody in New Zealand.’