THE Wairarapa Age MORNING DAILY. THURSDAY, MAY 19, 1932. WHAT IS TO FOLLOW?

Wairarapa Age, 19 May 1932, Page 4

THE Wairarapa Age MORNING DAILY. THURSDAY, MAY 19, 1932. WHAT IS TO FOLLOW?

On the whole, the outcome of the meeting of Masterton County ratepayers held yesterday to consider the possibility of making more work available on farms must be regarded as disappointing, though perhaps not surprisingly so. No great hope was held out that much work will be offered, even in the special conditions made possible by the operation of the unemployment relief scheme. This is due evidently, not to any want of inclination on the part of fanners to do what they can to help themselves and other people, but rather to the fact that so many men on the land to-day feel themselves financially gripped and pinehed in a degree that goes far to preclude any new enterprise, even on a modest scale. One of those present put the facts bluntly by observing that too many felt that any development work they might do now would amount only to improving the farm, for the mortgagee. It is recognised freely that many mortgagees at present are extending very liberal consideration to

their mortgagors, but it is natural that the farmer should look ahead a little and ask himself what the ultimate outcome is to be.

If nothing better is in prospect than that mortgagees, when times improve sufficiently, or the virtual moratorium now in operation is lifted, will enforce their rights as fully as possible and automatically take over any part or equity in farms possessed by occupiers, then obviously farmers heavily mortgaged have no incentive to exert themselves in improving upon their own existing conditions and those cf the country. On the other hand, in the extent to which a stable and permanent adjustment was effected now, assuming such a thing to be in any degree possible, the way would at once be cleared for a resumption of effective enterprise. That is to say, it would become the interest of every farmer so placed to make the most of oil his available resources in obtaining the greatest possible return from, his land.

State intervention in the affairs of mortgagees and their debtors has gone as far, presumably, as it can go and it is unfortunately clear that a mere continuance of the existing state of affairs is bound to work out badly in the end for both parties. In the extent, if there is any, to which voluntary and stable adjustments are possible now between the parties to farm mortgage .contracts, it is evidently wery desirable that this adjustment should be effected. It is only on the basis of such an adjustment that normal production and. normal trade can be re-established. The position as it stands may be modified, but is hardly likely to be remedied completely, by the improvement of oversea prices and by the reduction of local working costs. If, for instance, this country becomes a party,, at/ the Ottawa Conference,' to the stabilisation of sterling at a moderate level of inflation, some rise in produce-prices may be expected to follow. There is no visible prospect, however, of such a recovery in these prices as would in itself lift farming industry out of its present difficulties. The question appears definitely to be raised whether it would not be wise to effect now the adjustment of mortgage contracts that must in many cases be effected sooner or later —an adjustment that presumably will not be easier and will mot offer better results if it is made a' year or two hence than if it is made now. These observations, of course, apply only to cases in which voluntary adjustment is reasonably possible in ieohditionsj fair to both, parties. •' _