The Daily News THURSDAY, FEBRUARY 26. MORTGAGES ON FARMS.

Taranaki Daily News, 26 February 1931, Page 4

The Daily News THURSDAY, FEBRUARY 26. MORTGAGES ON FARMS.

The .movement in South Taranaki and elsewhere, which has for its object the assistance of farmers who have mortgages on their holdings to tide over the present time- of depression, is certainly prompted by the best intentions, and should be capable of conferring much benefit on those who are up against a serious state of affairs. By enabling such farmers to keep abreast of the work of production a valuable contribution would be made towards the welfare of the Dominion. No producer can put his heart and soul into his work when there is hanging over his head the fear of a mortgagee taking possession at any moment. At such a time as the present it would be almost inhuman to blame a farmer for having raised money by a mortgage on his property when the market value of his produce was at a high level. It is not his fault’ but his misfortune, that prices have declined below the level that enables him. to meet the cost of living as well as the expenditure involved in working his holding and interest charges, rates and taxes. It will be at once evident to everyone acquainted with business principles lhat if any effective measure of protection is to be given to farmers burdened with mortgages it must be done on sound economic lines under a well devised scheme possessing the requisite elasticity for meeting the generality of cases needing this

kind of assistance. According to the circular issued by the South Taranaki provincial executive of the Farmers? Union, a special honorary committee has been set up to mediate between mortgagors and mortgagees in laudable attempts to bring about equitable -compromises. The executive recognises, as do all unbiassed people, that it appears impossible to finance many farms for the 1931-32 season without some definite arrangement. It has taken a right view of the problem as it concerns £he farmers, the mortgagees and the banks, more especially the central phase of the whole problem, namely, the preservation of the security, not only of the land but also of the stock and chattels on which, money has been advanced. While, however, the voluntary committee appointed by the executive may be relied upon to do its best towards enabling the present occupiers of farms to carry on the business of production and work out their own salvation, it would seem there is some further power needed if the desired aim is to be achieved. For that reason the proposals emanating from the Otago executive of the Farmers’ Union appear to merit due consideration. That executive evidently has arrived at the conclusion that mediation between the farmers and mortgagees, as well as bankers, should have the official backing of the Government, and. that a mortgage and finance adjustment board should be set up in each district of the Dominion, such boards to endeavour to arrange adjustments between mortgagor and mortgagee. The outstanding difference between the Taranaki and the Otago proposals is that under the Otago scheme .power would be given to boards, in the event of disagreement between the mortgagor and the mortgagee, to declare a moratorium for a definite period, as well as to make a periodically equitable disbursement of all income from the farm. It will be claimed that the existence of such an alternative having all the force of law behind it would be a lever to bring both parties to terms, but it is certain that the reinstitution of the moratorium would not be received with favour; It has to be recognised that some provision has to be made for bringing pressure to bear in. the interests of production and the general good of the country, and it is certainly advisable for unity to be exercised in a matter of such, vital interest to the Dominion. But the moratorium is a very dangerous weapon, if only because it creates a feeling of ■ insecurity in the minds of those who have capital that could be used to help the Dominion, and this is a time when the whole of the country’s resources should be employed to the best purpose. Moreover, the proposal that the board should not only impose a moratorium but also take control of all- the income from a farm to which the moratorium applied is not altogether happy. Would it be in the best interests of the mortgagor to relieve him of responsibility and at the same time to rob him of his greatest incentive to work? It is not the man who is incapable of managing his Own business upon whom boards and committees should expend their energy, but the man who has the qualifications and the qualities by means of which, with a measure of sympathetic support, he can pull through the time of difficulty. The first aim of any scheme of help for farmers should be to ensure such protection as is necessary for those who in the national interest, are worth protecting. It may be found that voluntary organisations will require the reinforcement of some form of legal authority, which should be devised with extreme care, but the main object is to inspire in the man who has the will and the ability to weather the stqrm courage and faith in the future.

BRITISH LABOUR DISPUTES. The information cabled from London on Tuesday that the fate of the British Labour Government’s Trade Disputes Bill is very doubtful will occasion no surprise to those who have watched its progress so far. Indeed, it would not be surprising if the Government itself fell upon this measure, which was an endeavour to bring to fruition somo of the most definite promises upon which the Labour Party won the last election. The only hope of passing the Bill was in the assured co-operation of a large section of the Liberals in the House of Commons. That assurance is no longer available, largely because of the fear that tlie Bill would allow trades unions to resort to a general strike with impunity. Great Britain has .not yet recovered from the damage to trade and industry caused by the general strike of 1926, winch led, among other things, to a tightening of the law limiting very considerably the political powers of trades unions and making it clear -beyond doubt that to organise a general strike would be to take part in an illegal action. These are the two matters in which the new Bill is considered obnoxious. Its second reading was carried through the abstention of Liberals from voting, and they stated then that they reserved the tight drastically to amend the Bill in committee. Apparently the amendments proposed are unpalatable to the Government and its supporters, and it has now to decide whether it will stake its existence upon the proposed alterations ffeing withdrawn. What is most unfortunate is that the support of the Liberals is only on account of party tactics. They prefer a Labour to a Conservative Ministry lest with the election of the latter the free trade policy of the country should be reversed. It is pitiable that the party whose old slogan was "trust the people” and which was ready to submit any ■big question to the electorate should now fear to allow so vital a matter as the fiscal policy to -be decided by the country itself. If ever Great Britain needed a strong Government it is today, yet so long as a Ministry’s existence depends upon party tactics So long will it be impossible for it to acquire the strength required to deal satisfactorily with the troubles that surround the nation.