THE MORATORIUM.

Hawera Star, Volume XLVIII, 22 August 1924, Page 4

THE MORATORIUM.

REASON FOR. EXTENSION CRY. LAND BOUGHT TOO DEARLY. (by TELEGRAPH—TRESS ASSOCIATION.) AUCKLAND, Aug. 20. The financial position of the Dominion, with special reference to the moratorium, was reviewed by Sir Harold Beauchamp, and the financial difficulties arising from the purchase of farming lands at inflated values were clearly set forth by him. “In common with many other people,’’ said Sir Harold Beauchamp, “I consider that it would have been far better if the moratorium had expired on the signing of the Armistice, when money was exceedingly plentiful, *, condition brought about in particular by ‘boom’ prices which, under ths Imperial requisition, had created a, great condition of financial ease. Through not terminating the moratorium then, people who were able largely to reduce, if not, in many eases, wholly to discharge their mortgages, took advantage of the opportunity <>f investing in other directions, particularly in land at inflated values. It is due to the excessively high prices which those people contracted to par for land that those who are to-daj clamouring for a further extension of the moratorium are in trouble. “I am connected, as is fairly well known, with several important lending institutions, and I can say without fear of contradiction that in respect of all mortgagors who have adequate securities to. offer there has not" been the least difficulty in arranging for renewal. It is only those who have no margins to offer who are feeling the pinch. ( That class especially is urging the Government to assist in tin establishment of an agricultural bank It has been suggested that this ban! should be financed by the Government. to the extent of something life £IOO,OOO, and that the bank shouH be immune from taxation. To mi however,. it seems ridiculous to imagine that This is going to improve a panacea for £IOO,OOO, plus the v - emit a. bank might be able to obtain in Be shape of its deposits, etc., would be a mere drop m the bucket, and the btak would not be able to afford anythhobke the assistance that has been gmn ment Advances to Settlers Depatm.!rit C E° rd AV g a stateme nt recent* by Mf. Mwws, it is the inter, tion of the Government to eontim* lendmg to farmers at the rate of somt would fe l l- 1 *T k ’ 1 maintain would be courting disaster if it wen piepared to lend upon the kind of ee eW y ? h f fc would be otf ered by thi class of farmers to whom I have re i SriinT' 1 thoS * e "' h ° <*”“<* sW a maigm Q f security upon a reason ably conservative basis of value. Quite recently I read of a, bankrum ment ei ’<hscl lie Is ? aild whose s£s ment disclosed that in 1917 ho mir chased a dairy farm of H 4 acres it the° Wi i jf • "’men whs borrowed He fa t d baB o d *** cal culatioqs upon butter- ,• at 2s 6d Per lb, and attributed P oduct Ul<! H ° th€ fall P rice of that pioduct. Having regard to the repeatthe"last“!S S by h L nauciai People diming hetbf L rn r l ? seems the imiiL lat a ” y t - arm£,l “ «hould ilfff -Jo f- lfiWas justified in looktSL* 2 P® r lb butter-fat. H ' hen to ls lb' was J ‘ate received (by farmers, but then g od dairying land was valued upon- a • bas, s of £l2 to £ls an acre. Thi ,?■ c>Wnn '? flt ' ial assig,iee said that the circumstances unfortunate, and there was no evidence of dishonesty on the part oF the bankrupt, who‘had slump** ha,C tOl Gr caugllt by the

I maintain,” s aid Sir Harold, “that his misfortune was wholly and solely to the improper assumption that 2s 6d per lb was going to be the ruling figure for butter-fat We have heard a good deal of the so-called slump within recent years, but I can only recollect three slumps .which have occurred during the past quarter of a century, and those in each case lasted tor a, very nrier .time only. One occurred in 1903, when wool was sold in J ° n 7 n per lb, and fat wethers in shears were bringing 9s to 10s in There was another in IJO/ at the close of the American inoc! 1C! cri sis. The third occurred in fd2o, when wool for a brief period was selling at round about 4d to 4id per lb in this country. I refer to coarse crossbred wool. This low price of wool was due to the Imperial Government unloading large accumulations of wool which had been purchased for khaki pui poses. That staple! rallied in price until to-day it has realised the handsome figures we have seen in the sales both in this country and In other markets of the world. ‘I repeat that had it not been for the umvisdom of farmers in paying inflated values for land this country today would be one of the most prosperous in the British Empire. Indeed, if one disregard the small section of the community who are suffering from causes to which I have alluded, I would say that it really is the most prosperous country in the Empire. We Isee that in the great spending power of the people. One only has to look at the list of imports to see that motorcars, motor-bicycles and motor accessories were imported last veair to the value of approximately £3,300,000, the largest item on our list of imports, and I should not be at all surprised to see this figure topped by a few r hundred thousands of pounds at the close of the' present financial year.”