AID FOR FARMERS

Timaru Herald, Volume CXXXIX, Issue 20028, 8 February 1935, Page 8

AID FOR FARMERS

CHEAPER RATES OF INTEREST PROPOSALS BY STATE By Telegraph—Press Association WELLINGTON, February 7. Addressing the executive of the New Zealand Farmers’ Union to-day on the National Mortgage Corporation proposals, the Rt. Hon. J. G. Coates said that the corporation would not be a monopoly as there was no reason why other corporations should not compete if they could survive. The proposals would give the farmer an opportunity to convert to a lower rate of interest. It had been stated that only 5 or 10 per cent, of the farmers were in difficulties to-day, but on the basis of the Dairy Commission’s report approximately 50 per cent, of the dairy farmers could not meet their liabilities. That figure would probably not be exaggerated if it referred to other sections also. There was a very unhappy feeling among farmers. In the last three or four years arrears of interest had been postponed, and it might be found necessary to continue the moratorium in 1937. But what about the man with a family growing up who had liabilities which it was impossible for him to meet? There was a hopeless feeling, and the next step would be deterioration. The question took on a national aspect. He had the greatest respect for contractual engagements, but it had to be remembered that the farmers and people of this country had nothing to do with the catastrophic fall in prices. Those men had made contracts in perfect good faith, and having made them were keen to carry them out. But the point was could they carry them out? While the legislation might have the effect in the minds of some people of detrimentally affecting contractual rights, was it realised, perhaps, that 1 or 2 or 3 per cent, was being gladly taken to-day, and that the rest of a mortgage really might not be worth anything at all? Mr Coates said he thought that they were entitled to look at the position from that point of view. In any case, was there a fairer system than to allow three men, a judge of the Supreme Court and two assessors as a Court of Equity to decide at the end of a period of five years what should be done? But if contracts one way or the other had the effect of hindering the production of the country, then he thought the problem had to receive consideration. Reply to Criticism Referring to criticism that the proposed legislation was too extreme, Mr Coates said that it was the duty of those responsible for guiding the country in difficult times to take steps very often to save people from themselves. “They won’t thank you for being a grandmother, I admit,” he said. He could think of no better system than the one we had at present, but if /that system did not fit in with the changed conditions and ideas, then it was right to see that it was made to work with the conditions that existed. The system was not being destroyed, but, prima facie, it might appear that contracts were being interfered with. But if those contracts were based on fallacious values and prices over which there was no control, then surely the welfare of the majority was the first consideration, and when they got down to real facts they found that in the farming industry lay the basis of the country’s past, present and future prosperity. MR C. A. WILKINSON S ADVICE By Telegraph—Press Association HAWERA. February 6. Mr C. A. Wilkinson, M.P., addressing the South Taranaki Provincial Farmers’ Union at Hawera to-day, said his advice to farmers was to wait for the Mortgage Finance Bill, and if it was not satisfactory and would not end the present intolerable situation, to refuse to accept the Government’s proposals, especialy any stop gap legislation; also to remember that the election was only nine months away, and if the situation was not satisfactorily met then to wait patiently for that day and cast the Government out of office and put in a new Government which would do the job.