FARM FINANCE ACTS

Taranaki Daily News, 11 April 1935, Page 4

FARM FINANCE ACTS

SOME GOOD ANTICIPATED

MR. BLYDE GIVES UNION’S VIEW.

PART PLAYED BY MR. W. J. POLSON.

LOGICAL ACTIONS IN THE HOUSE.

Support of the actions of Mr. W. J. Polson, M.P., in connection with recent mortgage legislation was voiced by Mr. H. E. Blyde, president of the North Taranaki executive of the New Zealand Farmers’ Union, last night when he gave a comprehensive address at the annual meeting of the Hurworth branch of the union on the Mortgage Corporation. Act and the Rural Mortgagors’ Final Adjustment Act. The work of the provincial executive during the last twelve months had included consideration of mortgage legislation, said Mr. Blyde. The union as a whole, and more particularly North Taranaki, could claim to have been largely responsible for bringing to the notice of the Government the necessity for legislative authority to make possible adjustments of the mortgage position of farmers. While disappointed with the measures brought down, it was possible that some good would eventuate in a number of cases. They could claim only a limited success in the matter.

Efforts were being made by statements in the Press to create the impression.that the farmer was not in as bad a position as he claimed to be, said Mr. Blyde. This was not the case. The fact that there were so many credit accounts, in banking returns was not an indication that the farmer was better off, but that his position was such that the banks would not allow a debit account. Bank returns showed that 6 per cent, of those under obligations to the banks were in serious difficulties. Banks were conservative concerns and all would realise that those in difficulties through liabilities to other lending concerns would far exceed 6 per cent. The farmer was in a bad way and had been waiting and hoping that something would be done to bring relief. There had been allegations of class sacrifices. The Farmers’ Union asked for uniformity of sacrifice, said Mr. Blyde. Until recently it had been the farmer who had made the sacrifices. It should be noted that the'Farmers’ Union did not consist entirely of mortgagors. The executives were in many cases composed of both mortgagors and mortgagees. MR. POLSON’S KNOWLEDGE.’ “We are told to keep on the farm and not meddle with something we know nothing about,” said Mr. Blyde. “In Mr. Polson we have got someone who knows more about the position than anyone else in the Dominion. Mr. Polson has had the opportunity of' studying the nosition from all angles, and when we are led by him we have a right to say we know what we are talking about.” . Mr. Polson’s political opponents suggested he was inconsistent because he did not deny the Mortgage Corporation Bill a second reading, although he was opposed to it. Mr. Blyde considered Mr. Polson took the right and only reasonable course. The second reading of the Bill was only a general discussion on the principles, contained, and afterwards it went to the committee of the House, when each clause was discussed and if necessary voted upon. Mr. Polson did his best to secure amendments and .voted in practically every case against the Government, a party of which he was nominally a member. He voted against the Government because it opposed his principles, the principles of the Farmers’ Union. Failing to secure the amendments, Mr. Polson voted against the Bill in the third reading. Mr. Polson proposed amendments calculated to remove some of the more objectionable features of the Bill, what was more, he put up a determined and fearless fight for every one of them. His vote against the third reading was the logical and proper attitude to take, said Mr. Blyde. In the Bill that followed Mr. Polson succeeded with the help of Mr. Wilkinson and others in obtaining amendments which greatly improved the measure and made it of some use to farmers. Having done this he was again consistent in voting for the third reading. _ Detailing the Mortgage Corporation Act at.length, Mr. Blyde said that from ,-n investing point of view it offered a very sound proposition to the .public. It was akin to a gilt-edged, security and would tend to keep interest up. If :t‘ came, to a crisis the Government would have* to assist the corporation as it had done the Bank of New Zealand years ago. In his opinion the legislation did not require the shareholder clause. It was most iniquitous that the borrowers had not equal representation with the shareholders. Referring to the Rural Mortgagors Final Adjustment Act, Mr. Blyde said the two were more or less wrapped up with one another. He detailed the sections of the Act and answered questions relating to both Acts.