FINANCE OF FARMERS

Taranaki Daily News, 20 April 1935, Page 9

FINANCE OF FARMERS

QUESTION OF SOLVENCY TARANAKI SPEAKERS CRITICISED. “POSITION WORSE THAN STATED” REPLY MADE BY MR. W. J. POLSON. Strong exception to recent statements regarding the financial position of the farming community was taken by Mr. W. J. Polson, M.P., in an address to farmers at Okaiawa on Wednesday. He said these statements were likely to be misleading. One statement was that 90 per cent, of the Stratford county rates had been paid. The other was that only eight mortgagors of the New Plymouth Savings Bank were causing any anxiety. Mr. Polson said he regretted to see such unqualified statements, as they were likely to cause wrong deductions and did not indicate the true position. As a matter of fact, only 85 per cent, of ratepayers had paid their rates, and the smaller men were finding it very difficult to meet their obligations. However, they did not like to be sued for rates, and struggled to pay these claims,, often allowing other accounts to get behind in their efforts. Mr. Polson quoted the evidence of experts before the Dairy Commission, who said that 50 per cent, of farmers were in difficulties. He did not think the Taranaki spokesmen had sufficient facts before them when forming their conclusions, and he considered that the good position of the savings bank mortgagors was due to the careful selection of the securities and to advances not being too great, rather than to the good position of the farmers in general. He did not think the views expressed would carry much weight in comparison with the evidence of the Dairy Commission. The statement of the banks concerning the position of overdraft accounts among farmers was amusing, said Mr. .Polson. It was not the farmers who were in difficulty who were allowed overdrafts. From five to 30 per cent, of farmers were already under budgetary control, -and the evidence before the Dairy Commission showed that the farmers were losing heart in face of high costs and low produce prices. ‘ It was clear the position was growing steadily worse, and the Commission was of the opinion that without protective legislation mortgagees would pursue mortgagors to the bitter end.