MORATORIUM PROPOSAL.

Press, Volume LXVI, Issue 20105, 8 December 1930, Page 10

MORATORIUM PROPOSAL.

REQUEST OF FARMERS. CONSIDERATION THIS WEEK GOVERNMENT'S ATTITUDE. [THE PRESS Special Service.] WELLINGTON, December 7. In spite of the urgent request by the National Dairy Association and the partial support by the Daily Control Board for a moratorium on mortgages, in order to assist farmers over tho present, depression, the opinion is freely expressed in Government quarters that such a serious step will not bo taken if another way out of the difficulty can be found. There is likewise little real hope of the Government agreeing to the calling of a special session of Parliament if this step can possibly be avoided, though it is clear that the general economic condition of the country and the state of the national finances are at present exercising the close attention of Cabinet. With tho spectacular drop in -wool prices recorded at the first sale of the season, rumours immediately became current that a moratorium would be considered by the Government, with tho object of relieving the serious financial position, in which many primary I producers found themselves. The decline in wool values was the last of a series |of adverse price movements directly affecting the farmers and so serious was the reversion that undue alarm was expressed i in many quarters. It is understood on good authority that Cabinet had at no time seriously considered the granting of a moratorium until the definite request made by last week's deputation was placed before it. Information had reached it that a moratorium had been suggested by a certain section of the primary producers; but the measure was not given actual attention until the proposal was presented formally last week. Full Enquiry by Cabinet. Although the deputation that waited on Sir Apirana Ngata and the Hon. R. Masters emphasised that in its view the only way out of the present difficult situation was to grant a moratorium, it is understood that Cabinet is not disposed to accept the representations made without first making a full enquiry into the position. It was pointed out by Sir Apirana Ngata that the granting of a moratorium should be tho last step to be taken to assist those who find they cannot meet their liabilities through the reduction in the return upon produce. He emphasised that the making of such a serious concession would probably have far-reaching effects, and that the State itself would be involved considerably in the temporary removal of certain financial obligations. A considerable proportion of many farmers' cream and wool cheques finds its way into the State purse in repayment of advances, and it was made clear to the deputation by Sir Apirana that this question could not be overlooked by the Government. Apart from that, other important financial considerations enter into tho question of granting a moratorium, and as a result, it is understood that the Government will refuse to take any definite step in the desired direction until it has satisfied itself that other avenues of escape from this extreme measure have been closed to it. Consideration This Week. It was natural that Sir Apirana could not commit tho Government in the absence of both the Prime Minister and | his deputy; but Mr Ransom 'will be resuming his official duties on Tuesday, and it is understood that the general economic condition, and the part the Government will be called upon to play in its rehabilitation, will receive earnest attention this week. Several import ant questions have been held over until the return of Mr Ransom, and foremost among these is the question of finance in general and the position of primary producers in particular. The granting of a moratorium would require an Act of Parliament, and there is every reason to believe that the Government is far from anxious to call a special session, which might precipitate a political crisis before the General Election o* next year. It is well known that a Government can do as it likes in a recess without being called on to answer immediately for its actions in the House, and in spite of the fact that Cabinet is maintaining a studious silenco as to its actions, it is known that it has not ceased to impose extra charges in certain directions for the purpose of increasing reveni e. So far it has not seen its way clear to announce exactly what it is doing.

The Prime Minister made a statement in London last upon the moratorium proposal and hig disfavour of the project is reflected, in the attitude of other members of the Government. Jt is realised that the step is too serious to be taken lightly, No time has been lost by the Government in making an enquiry into the position of the primary producers, and it may be taken for granted, that if other forms of assistance can be given to tide the farmers over the depression, Parliament will not be summoned before the normal time next June.