STINGING THE FARMER
STATE AS MONEY-LENDER PASSING DEPRESSION CHARGES The position of the sheep farmer who has accepted financial assistance from the State in regard to depreciation of values following up[on war conditions was strikingly instanced in a letter received by Mr G. A. Morphett, of the Branch of the 1 Farmei'S' Union, front Ihe Lands Department, and forward-* ed by him to the Auckland Ex ecu-* live. An Illuminating Document. The letter reads : "With reference to your letter asking for a refuncf of surplus monies in your No. 2 acv count I have to advise that the pre* sent surplus in your account is £106 against which July charges to the Departmernt and a commitment to* 10 tons of lime, approximately £60, will he chargeable, leaving approximately £46. , "Included in the credits of th« surplus) is an item of £32 for 3(1 lambs and £23 for wool. The original advances for sheep amounted to £83 for 60 ewes and 3 rams. The present sheep on hand per your return are 54 ewes, 5 hoggets and 3 rams,. At standard values, 15s for ewes10s for hoggets and £2 2s for rams; the total value would be £49 or £3S less than the original advances. So far all proceeds from sheep ant? wool have been regarded as revenue, but to put the account in order if* will be encessary to transfer £35 from revenue to capital to covcr depreciation in sheep. (Signed L. J. PofT, Commissioner Crown Lands.'* Commenting on this letter, Mr Morphett wrote to the Executive z "Although my flock is a mere hand-, ful I consider the matter should be treated as one affecting all farmers who run sheep and of national importance, in that it is evident that the farmer isi being asked to carry the full burden of loss' both in capital and revenue —which loss may reasonably, be attributed to depressed markets following upon Government action in restricting killings, and in general to "syar conditions. Another point requiring investigation is whether the revenue transferred in reduction of capital account and treated as depreciation is sub* ject to taxation. The letter was referred to the seo retory for attention.
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Bay of Plenty Beacon, Volume 4, Issue 123, 30 June 1941, Page 5
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363STINGING THE FARMER Bay of Plenty Beacon, Volume 4, Issue 123, 30 June 1941, Page 5
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