Farming Column

Hokitika Guardian, 19 March 1932, Page 8

Farming Column

FARMERS’ UNION NEWS AND NOTES.

Considerable doubt exists at present regarding the procedure to be adopted in order to bring a case of hardship before an Adjustment Commission, appointed by the Government to examine cases of hardship under the Mortgagors’ Relief Act. Legal advice taken as of the opinion, that an Adjustment Commission may with, the concurrence of the Minister of Finance on application by mortgagor and mortgagee endeavour to promote a voluntary modification by the parties to any mortgage' of their mutual rights and obligations. Under this provision the mortgagor does not have to wait until the mortgagee takes action to enforce the, powers of the mortgage and the mortgagor can himself originate proceedings for relief. The points for’ consideration by each Adjustment. Commission are:— (a) The effect of the continuance of the mortgage upon the security thereby afforded to the mortgagee. (b) The inability of the mortgagor to redeem the property either from his own moneys or by borrowing at reasonable rate of interest, (c) The conduct of the mortgagor in respect of any breaches by him of the covenants, of ‘the .mortgage, (d) Any hardship that would .be,, inflicted on the mortgagee by the ' con-; tinuance of the mortgage or upon, the mortgagor by the enforcement thereof. (e) The extent to which any de-i fault by the mortgagor has been caused by' any economic or financial conditions affecting trade or in industry in New Zealand.

The following figures show the steady growth in the business actions of the Rural Intermediate Credit Board since its inception:— (a) £32,260 worth of business for year, ended’ 30th June, 1928. (b) £273,244 ended 1929; (c) £590,246 ended 1930; (d) £840,301 ended 1931. The position generally with regard to loans granted by the Board either direct or through cooperativfe rural intermediate credit association is very satisfactory, and the repayments, from borrowers are in the large majority of cases proceeding regularly. Where, however, borrowers hay* been unable to make the required repayments the Board has been willing te grant concessions on very favourable terms to enable the borrowers; concern; ed to carry on during the present difficult period. , .; What is considered a desirable Jmpiovement in the administration of the Rural Intermediate Credit system, relating to further advances was 'recently approved by'the Central Beard in Wellington. The previous quired all applications for further advances to be dealt with by the .Central Hoard, or in certain, cases,.. theDistrict Boards. As many of the further advances were required to meet essential seasonal expenditure, such as, e.g. the providing of winter feed, shearing and harvesting expenses, the Board has delegated subject to certain condit tions, the power to grant such further advances toi committees of its District Boards, and to District Intermediate Credit supervisors, where it is essential for the amounts required to be advanced if the borrowers are to be permitted to carry on for the ensuing season Since the Department of Agriculture introduced its scheme of certifying ryegrass seed the demand has been greatly in excess of the supply with a consequent increase in price for the three grades for which certificates are issueu These grades are:—(1) N.Z. Perennial Rye certified Mother Seed. (2) N.Z. Perennial Rye certified First Harvest Seed. (3) N.Z. Perennial Rye certified Permanent Pasture. Seed. Recent inquiries made by the Department of Industries regarding price were confineoi to Wellington merchants who obtain supplies of (1) and (2) from seed merchants in the Hawke’s Bay and Poverty Bay districts and (3) to some extent from seed merchants in Canterbury. Wellington merchants have been paying seed merchants in these districts the following prices:—For No. 1 seed 20/- per bushel of 201bs; 2 seed 18/6 per bushel of 201bs; 3 seed 12/6 to 15/per bushel of of 201bs; and have been selling as follows: —No; 1 seed 22/- to 25/- per bushel; 2, 21/6; 3, 15/- to 17/6. These profits are regarded as reasonable and no exception can be taken to them.

During the past six months the people of tlie Dominion have been inundated with pamphlets, letters in the 'Press etc. ...suggesting sure cures for our financial ills, with the consequent result that everyone is suffering from severe mental headaches from the surfeit. The latest pamphlet ha* jus; been released to the faming community by Prof. Belshaw of Auckland University in collaboration with some oi bis lectures; the “pills” ecommendc. 1 to be taken by this coterie of economists are by no means sugar-eoated, and to be effective must include: —1 As a first step the exchange rate should be raised to 25 per cent and hold at not below, that level until conditions stabilise overseas. The currency should then he re-valued in terms of sterling at a level to he determined bv an ex-

pert Committee. 2 A ••eduction •" interest and other fixed charges should he imposed, subject to exemption in the case of hardship. 3 The Government and the banks should agree to a leveling of deposit and “over-the-counter ’ rates. 4 A further reduction of wages and salaries of Hi ner reel sln.m " imposed. : 5 Tim Government Id efl'erl economies to the extent of t:l.OMfUtlO contemplated in tho Financial |4lat,“menl.. October.. 1“” . ■< tlier ,(V1 ,(K¥i.O(K), including a Id per ,ei,t reduction in the salaries of Civil

servants. 6 A plan should be prepaied to balance the Budget 111 two or three years, deficits in the meanwhile to he financed by Treasury Bills or other form of internal loan. ,

A committee consisting of the following Cabinet Ministers, Hons. Forbes, Coates, Downie Stewart and Masters has been set up to prepare a fiscal policy that will best meet the needs of New Zealand as regards intra-Em-pire trade. Most probably the N.Z. Farmers’ Union will he asked to submit its views to this Committee before the N.Z. delegates leave for Ottawa Conference in June. Up to the present no definite agenda has been set out by the British Government, but it may be assumed that two of the major matters for consideration will be, (a) the extension, by customs tariffs of further assistance to Empire industries, and (b) some comprehensive scheme of Empire preference will be evolved which will replace individual trade treaties, between Dominions. The fiscal policy o’ the Union is very definite, , viz. that taxation through the Customs shall be for the purpose of raising revenue, and: not for protective purposes.

. Last August a reciprocal trade treaty between Canada and Australia was ratified by the Parliaments of both countries. According to the. Australian Minister of Markets it is estimated that Australia would gain at least £4 m. from the agreement, and that these benefits would mainly go to the man on the land. Among the main concessions gained by Australia were h ' A preference af 5 cents per lb. on fresh meat in lieu of 3 cents previously •(b) An increased preference on canned’ meats from 12} to 20 per cent. (c) Australian butter gained an advantage o' a least 14/- per cwt. over that of New Zealand, (d) Australian cheese got an increased preference from 3 cents to 6 cents per lb against all countries except Britain, (e) As soon as Australia could supply Canada’s requirements of rice it would enter free, while rice from sill other countries would become liable to 25 per cent, ad valorem. The concessions, secured by Canada, in return were:—(a) The admission of Canadian canned salmon under British preferential tariff with an increase in the general tariff from 2}d to 4d a lb., thus giving Canada a greater trade advantage over U.S.A. (b) The duty on : foreign timber was to he increased so as to give Canada a preference of 2/per 100 sq. ft. (c) General tariff rates on unassembled chassis were increased from 5 per cent to 17}. The under-ly-ing idea of the treaty was to divert trade front foreign countries to the two Dominions. BRITISH FARMING. Tlie air, is clearing, and there certainly seems a more hopeful outlook for stock farming as well as wheat growing in this country (says the agricultural correspondent of the “T|he Times”). The Government’s decision-tr adopt measures to reduce the nation -. dependence on foreign sources of sup ply will be very welcome to farmers, though it may be based on the adverse ' Via nee 0 f trade rather than on considerations of the distress of the home ’ nr'cultural industry. It is evident that the Government are viewing the position as business men, and farmers will he expected to view the new opportun ities in the same light. At the present time there appears to be more than enough of every kind of foodstuff in this country. Nevertheless, if supplies from abroad are to be diminished by the action of Parliament, British agriculture will be called on to fill the gap, and will be expected to maintain ample supplies without detriment to the interests of the consumer. This can he dene. But it will need organisation. Farmers are ready to tackle the business. They are weary of glutted markets and the consequent stagnation *n their industry. A new spirit was evident at the annual general meeting ol the National Farmers’ Union, when the delegates, drawn from every county, were almost vehement in their determin'ation to have done with the old • wrnnglings over Dr. Addison’s Marketing Act and other political business. The industry has come to such a pitch that farmers are ready to adopt any reasonable means of securing a better market for their proiuce. ff organisation under this Act. -is it stands or in modified form, is a necessary corollary to the restriction of imports, it is evident that the main body of milk producers and other sections of the industry will throw tbpir energies whole-heartedly into marketing schemes. CO-OPERATION NOT A CURE-ALL. By practising co-operation, the dairy •’antlers of Australia have dotte great things, states an Australian writer, but every competent observer will admit that much more could have been done if sometimes the co-operation bad been of a higher order. There is an o'd aying that “a chain is no stronger than its weakest link.” Co-operation : s no stronger than the combined strength of those co-operating. Tt is no wiser than the combined wisdom of those co-operating. If there is no vis'on >tt the mem hers of tt co-operative organisation, and none in the management, the organisation cannot hope to suc- ■ cod against a proprietary concern than has vision.