“GROUSING”

Dominion, Volume 21, Issue 128, 28 February 1928, Page 10

“GROUSING”

Sir, —The -Minister of Lands, wants “grousing” slopped, your issue of the 16th Hist, states. Does ho mean criticism? The way to stop criticism is to remove grounds for criticism, which is then at least answerable. The worst "grousing” I have seen lately is Sir Harold Beauchamp’s statements to the Equitable Building Society. Advances to farmers have, lie says, been cut out. It should be plain to the poorest thinker that high rate of interest—not alone high rate to farmers, for they pay again in their costing account if the general rate is increased —is certain to reduce land values. tor the value of land depends on tho profit that can be made from the land, and whatever reduces profit reduces value of land. Those who care to examine banking statistics will find potent reasons for a slump in hind. Cutting out farm finance is criticism by act. AVhat I wish to point out more particularly is the gross inconsistency of Sir Harold Beauchamp’s attitude, past and present, and to place. on record, even if t speak alone, the opinion that he is again giving an altogether wrong lead. At Vancouver and Montreal, this gentleman spoke against the mission ot the Rural Credits Commission, and said that the assisting financial institutions were quite able to cope with the situation. According to Press reports he said that the commission was sent to find some way of “financing needy farmers whose position does not warrant them obtaining assistance through the ordinary channels—the State Advances to Settlers, the banks and financial houses.” Coming from a Government appointee, loth the above and the misleading figures used would carry weight and prejudice rural credit bonds. Now. Sir Harold Beauchamp is giv- ! ing a lead to further advances on city properties, so over-inflated already that they are drawing half the money available for mor!gages, in spite of the Government’s huge advances Tn 1916. rural lands drew 87 per cent., in successive years 7(1. 78. 79. 76, 71. 6°. 55. 50.1. .52 per cent, of fhe totals available. This is an extremely serious matter; how serious only lhe future can reveal. The result ot following such a load will be certain disaster. By hook or by erook, the Government’s pledge at last elections, to “redirect the (low of finance to the land,” must be honoured, or tho inevitable consequences will he ruin and starvation. All depends on the ujotitablo side of production. TTiere is no means yet discovered of producing a credit by adding to a debit, and the cities appear on tho debit side, not on the credit side, of the national lodger, where also appears every industry and every class depejiding on artificial arrangements for profits. —1 am, etc., A. E. ROBINSON. Auckland, February 18.