“OLD FARMER” AND EXCHANGE.

Taranaki Daily News, 10 February 1933, Page 2

“OLD FARMER” AND EXCHANGE.

(To the Editor.) Sir,—l read a letter in Wednesday’s issue of the News from an old 'farmer who apparently requires a little education, and having a little time to spare I don’t mind doing a little of this inuch:needed work. In the first place the increase in the exchange rate is a very doubtful relief for the over-biirdfehed farmer. It is brought about only, at a very heavy expense to the country', to relieve the fanner, who at tlie present price of produce has his farm over mortgaged. To those who have little or no mortgages on their farms the increase is a gift. A better way out would. be to put the mortgages on a sliding, scale with the price of butter-fat. For instance, if a mortgage is worth £lOOO with but-ter-fat at a Is a pound, with butter-fat at 6d a pound the mortgage should come down to £500; and then suppose butterfat went up to 9d a lb. the mortgage should go up to £750. By this means the hard pressed one could be helped without helping those who are not in the need of it. The suggestion that merchants are making fortunes out of the increase is rubbish, and is only maintained by those who have no idea how business is conducted. Oh the contrary most of them lose thousands because they work on a 60 or 90 days note, which means a tremendous lot of the goods .they have sold in the last two or three months, including the Christmas trade, at the old prices. They themselves are being charged 15 per cent, extra, and so “Old Farmer” need not say anything about the merchants passing it ori. In the building figures “Old Farmer” is again hopelessly at sea by the prices he is quoting. He is apparently comparing a concrete worker’s dwelling built in the towns a few years ago when building prices were at their peak with a- wooden dog box of a dwelling built in the country at the.very bottom of the slump. If he took. a trip into town these days he would find he could build a mansion for £lOOO.. Hoping “Old Farmer” will have a better grasp of things now.—l am, etc., • / “COMMONSENSE.” Opunake, Feb. 9.