POSITION OF FARMER

Hokitika Guardian, 14 February 1931, Page 7

POSITION OF FARMER

LIVING ON REVENUE. CHRISTCHURCH, February 12. “In the near future our only straight course is to live on our revenue, small as it is. 'l'llis means a sacrifice on our part of most of the comforts and luxuries we have been used to, and means the acceptance by all of our creditors of only a proportion of interest, rent, rates, and taxes,” declared Air L. R. C. Alacfarlane, president of tlu> Canterbury Agricultural and Pastoral Association at a meeting of the General Committee yesterday in urging that until the present economic position righted itself we should avoid borrowing altogether. MASS MEETING REPORTED Air Alacfarlane reported that as a result of the mass meeting of farmers held in December, and acting on the suggestion of the meeting, a committee was formed, a meeting of which was held in Dec., when considerable time was spent in discussing the position. A scheme of voluntary farmers’ relief submitted by the speaker was very fully discussed, and the conclusion was reached that legislation was necessary before any definite results could be achieved. A sub-committee was appointed to go into the question of publicity, and early in January this sub-committee met and satisfactory arrangements were made. The full committee later in the month met and again discussed general matters and farm relief. A resolution was passed and forwarded to the Prime Alinistor urging the Government to do something giving farmers a definite line of action to follow, and some definite protection against- foreclosure. A REMEDY “Speaking for myself, and not for the committee,” said Air Alacfarlane, “1 should like to make a statement on the -farmers’ financial position to-day and the remedy as I sue it. “When we each of us study carefully our own financial affairs, several facts are dominant. No matter how we farm or how wo are situated, our farming operations arc being carried on at present at a loss. “We owe money which we cannot pay out of revenue. Alost of us are honest men, and not to pay our debts is naturally abhorrent to us. But I ask you, what else can we do? Some of us can borrow money from one creditor to pay another, hut as Euclid says, ‘that is absurd.’ “Are we wise to borrow money while our currency is being deflated? Are we right in adding to our liabilities on a falling market? No, T think one fact we all of us recognise is, that the slump has taught us not to borrow money. “NO OTHER AYAY.” “We draw out n balance-sheet showing our true position to-day. Then we make out a- budget for our next year’s incomings and outgoings. AVe expect to get £750 for our produce, and we find that £IOOO will he needed to pay taxes, rates, rent, or interest on land, interest on bank overdraft, and our living and working expenses of the farm for the next twelve months. “All we can do, then, is to pay our creditors three-quarters of what wo owe them. There is no other way. All Government penalties and conditions.

all finely-worded mortgage deeds, and chattel securities to-day are not worth the paper they are written on “Can we help ? AA’e must he more selfreliant. AA'e must refuse to deal with salesmen visiting our farms in ears. AA> must stick together and fight on for ever and ever and ever.” BURDEN OF HIGBAVAYS. Afr H. E. Perymnn said the County Councils should have given a lend in the direction of reducing costs. Some had done so, hut not the majority. Tt was the wages paid in the cities that kept up costs, not the wages paid in the country. Alost of the farmers wore paying little enough in the country. Another matter for complaint was that the rates were too high. He was anxiously awaiting statement- from the Prime Minister on the question.