FARMERS’ PROBLEMS

Wanganui Chronicle, Volume 84, Issue 95, 24 April 1940, Page 9

FARMERS’ PROBLEMS

RISING COSTS CURBING PRODUCTION CHARGING OF COMMISSION Members present at the annual meeting of the Waimarino branch of the New Zealand Farmers’ Union were of opinion that rising costs are preventing much needed increases in primary production in this country. Interest and commission charged by stock and station agents were considered too high, and after several had spoken and given instances of what was considered unfair, it was decided to send a remit to the Wanganui Provincial Executive, for the provincial conference, asking that, as a war measure, agents should not be allowed to charge commission unless some service is performed, and interest should be capitalised only once a yeat.

One member said he knew of a case where a farmer had compound interest added to his account every month.

Another said his solicitors showed him he was paying nearly 12 per cent, interest. Objection was taken to agents charging two commissions on the one transaction, and an example was given where a man sold some rams to his wife, living on the same property, and he had to pay commission to his agent and his wife had to pay to her firm, although no agent came near the place. Mr. A. S. Ashmore quoted figures from returns alleging that the farmer was not getting sufficient money for his ewes, as the result of the guaranteed price.

Mr. D. F. Scarrow said that many farmers were not in a position to increase their production, and he resented the statement that he had seen in a pamphlet that the farmer wanted to get paid for his patriotism.

A member said he wanted to increase his production and asked his firm for some fertiliser. This had been refused and he was told his returns last year did not warrant it. Under those circumstances he could not increase production.

The chairman, Mr. H. E. Frederick, pointed out that meat was a necessity for the troops for the winning of the war. Farmers’ stock should be considered first-class security. Mr. E. T. McLean said land was

giltodge security, but stock would never be considered first-class security. A snowstorm might deprive the lender of his security. I

Mr. C. D. Lynch was or the opinion that when the Government pegged the price to be paid for the farmers’ production it should have also pegged the cost of the various items incurred. The banks regulated the rate of interest charged by the agents. Mr. H. W. Littlewood urged that the time was now opportune for a thorough investigation into the whole question of interest and credit by the