SOLVENCY OF FARMERS

Taranaki Daily News, 13 February 1935, Page 4

SOLVENCY OF FARMERS

BANK ACCOUNT EVIDENCE CHAMBER OF COMMERCE INQUIRY. REPLY TO MINISTER OF FINANCE. “IMPORTANT FIGURES" ADDUCED. By Telegraph—Press Association. Wellington, Last Night Recalling that his association had recently questioned the accuracy of a public statement of the Minister of Finance (the Rt Hon. J. G. Coates) that there were said to be 50,000 farmers who if the bankruptcy law were applied would be bankrupt, Mr. A. O. Heany, secretary of the Associated Chambers of Commerce, said to-day that, his association had since made inquiries from the trading banks, which had obtained from each of their branches' statements as to the number and position of their farmer customers. . The Associated Banks had advised his association as follows: “The number of farmers having bank accounts either overdrawn or in credit on January 28, 1935, was 48,519. Of these bank managers reported that 3039, or 6.26 per cent, of the total, were known to be in serious financial difficulties. These figures account for at least half the farmers, in the Dominion.” Mr. Heany said that if the Government’s proposals for the rehabilitation of farmers’ finance were based on the belief that there were 50,000 farmers virtually in a state of bankruptcy the figures relative to the state of the farmers’ bank accounts were of great importance, and their significance should be weighed by the Government, Parliament and the general public before the enactment of any panic legislation.