SUGGESTED MORATORIUM

Hokitika Guardian, 5 December 1930, Page 3

SUGGESTED MORATORIUM

DAIRY INDUSTRY. (By Telegraph—Press Association Vi v * WELLINGTON, December 37 . The serious plight of the dairying industry as the result of the 'fall in the value of' butter and cheese was stressed by a" deputation representing the National Dairy Association and the Dairy export Control Board to the Acting-Minister of Finance, Sir A. Ngata, and .the Hon. Mr Masters, today. It was suggested by the speakers representing the National Dairy Association that Parliament be called together jn'February vfor the purpose of declaring a moratorium, as many of the dairy farmers "were afraid that they would be unable,;, to meet their obligations. Other ’speakers that other means of assisting the dairy farmers be devised. Sir A. Ngata said' that the sum- ! 1' moning o'f Parliament was a matter for Hon. Mr.'Fof.bes,,. and it wouldte have to staiid over till his return. ..In-1 v the fhea'ntime, howiver, 'he'would dis- j ' cfes'' the prbl)lefh7with his colleagues, j and, in collaboration with representa- ! * t : ves of the dairying industry, an inquiry would be made into the posiiion of the industry. A COMMENT. AUCKLAND, Dec. 4. Commenting on the suggested moratorium, Mr Robinson, the Auckland Farmers’ Union Secretary, said l.v believed it necessary merely as a bridging policy to give farmers a fair deal to prevent the Dominion from losing a great many expert farmers. A short moratorium "until Parliament could deal with the question more thoroughly seemed to indicate something' much more drastic might bo necessary if the present prices continued.

A financial authority was opposed to the proposal, saying the cure was worse than the diseas. He did not see what good a mortarium did before or what good it could do now. Tn stitutions lik’d always helped the trier and! 'the non-trier deserved no consideration.''

' ■ FURTHER CRITICISM. ' WELLINGTON, Dec, 4. ' Triferviewe'd Sir Harold Beauchamp expressed the 'View that the moratorium was miwisp, and 'impolitic. Ho stated it would have been Wise had the moratorium been lifted after the sisriihs!: of the Armistice, when owing to high prices farmers would have been ablb to discharge' or largely reduce their financial obligations, instead of purchasing high price lands, the result of which had been so disastrous to the farming community today. Ab though many farmers, unable to pay interest, were being treated with the utmost leniency by mortgagees, financial'institutions recognise it as unwise to force 1 the farmers to walk off their lands and therefore say “carry on and do '+best von can till the financial conditions improve.’'' In addition, the moratorium would have a most deleterious "effect upon New Zealand cred-

it elbroad, particularly the London market. " Furthermore the people in VNew Zealand would look askance for applications for money to l>e advanced on land. It was only a o nest ion ■: of time before the State would be the so'e mortgagee, which was a position none would care to see.