FARMERS’ BURDEN.

Wairarapa Age, 9 December 1921, Page 7

FARMERS’ BURDEN.

REDUCTION OF MORTGAGES. DEPUTATION TO PRIME MINISTER. Emphasising that a large percentage of farmers are at present in financial difficulties, a deputation from the Dairy Farmers’ Union waited on the Prime Minister yesterday with proposals embodying the reduction, where necessary, of mortgages and of the rate of interest. The Prime Minister, while refusing to admit the deputation was right in. its statement that “-scores of farmers have left their farms,” said the problem was an extraordinarily difficult one, concerning which he would have to consult his colleagues. The deputation suggested that a Commission should bo appointed to investigate the position, but Mr Massey indicated that he did not think this necessary. He was prepared, however, to give the services of an experienced officer to assist in bringing about an agreement in cases where the mortgagee and the mortgagor were willing to negotiate in the manner suggested by the speakers.

Mr A. E. Fear, of Te Awamutu, said a large percentage of the dairy farmers were at present in financial difficulties, and in scores of cases bad left their farms. The Prime Minister said that was a serious statement to make, and he would like to know where these men were. Nothing of the kind was happening in his own district. COMMISSION SUGGESTED. Mr Fear said that for these men to cease producing and the land to fall back into the hands of the mortgagee, who would not farm the land, would be detrimental to both the individual and the State. To obviate this trouble the union recommended, that a Commission should be set up. It was further suggested that where a farmer was holding more land than he could farm after the mortgages were readjusted, he should divide the farm in two or more parts, and lease with a compulsory purchasing clause to the incoming tenant, the mortgagee to divide the mortgage in equal parts. Legislation was sought to give the Government power as the third party to settle any disputes, and it was suggested that the necessary surveys and transfers should be conducted by state departments at the lowest possigle cost. Incoming men, where subdivisions took place, it was suggested should receive an advance from the State up to £3OO on a pound-for-pound basis at current rates of interest. SPECIAL VALUATION. .Mr T. C. Grace, of Pirongia, said if these proposals were not acceptable, the union had an alternative. This was that a Commission, should be set up to investigate all post-war second and subsequent mortgages, with a view to advising the Government to enact legislation so that, in all cases where the total value of existing mortgages on the property exceeded 90 per cent, of the average cash selling value during the year 1919, the Commission might request all the parties concerned to attend and show reason why the amount should not be reduced to that level. Further, it was suggested that there should be made a special valuation vf all agricultural land, basing the new value on productive capability and proximity to commercial facilities. WHAT FIVE YEARS HENCE? The Prime Minister said he was anxious to increase production, as that was the best way to lighten the bur-

den. He understood the difficulties of many farmers who had come in during the time when valuations were high. The law provided a way out- if a man was unable to carry the burden. He gathered they wished a commission to fix the value of the land of farmers in difficulties, reduce the amount of the mortgage, reduce the rate of interest, and give the man a fresh start. That looked very fine just now, but what would the deputation do in, say, five years or loss, when values returned to normal? Was the Government to reverse the position in five years for the benefit of the mortgagee? If he could see that a commission would do any good the deputation would be welcome to it. He would go into the matter. As a result of the increase in the amount of exemption from land tax granted in respect to mortgages, no less than 5000 small farmers had secured exemption by this means. After further discussion, in which it was again emphasised that many mortgagees were willing to reduce mortgages, the Prime Minister said that if he could send along a good officer to assist in bringing the parties to an agreement, he would be glad to do so.