MORTGAGES AND MARXIANISM

Manawatu Herald, Volume XLVI, Issue 2778, 30 August 1924, Page 4

MORTGAGES AND MARXIANISM

SEEKING THE FARMERS VOTES The N.Z. Socialist Labour Party having secured a number of seats in the Industrial centres by promising' the towns people heaven upon earth, think to do the same in the, country constitutencics. According to their own professions, their hearts arc bleeding for the working farmer and they promise him freedom from all trouble if in return |hev can only secure his vote. It surely ought to be understood, however, that the Socialist party’s promises are first of all very unlikely to be fulfilled and further, that several would lead to general economic disaster were they ever reduced to practical application. The latest appeal to the farmer is a promise that the parly will relieve him of his mortgage burden by the simple process of expropriating the mortgagees’ interest and right. The leader of the party (who avows himself a Marxian Socialist) has presented an amendment to the “Mortgages Final Extension Bill, ’ now before the House. Mr Holland says the Marxinnism is “scientific,” We are pleased that he did not add the word “ethical" as it would certainly ill-deseribe the proposals of plain injustice he makes in this amendincut. What is aimed at. in connection with mortgages coming under the Moratorium, is that the State shall become (he side mortgagee. This is in keeping with the party's platform which leads towards making the State sole land owner. Rightly understood the parly’s Socialist programme is to save the private farmer hv eliminating him. The stops indicated in this present amendment, which the party presents, are: —

■(1) That the Government shall borrow jC(>,000.000 a year wherewith to purchase the mortgages. (2) That the Moratorium shall continue in force until all the mortgages are taken over by the St,ate. (d) That the contract- between the Mortgagees and Mortgagors be broken and the State take over the mortgages on the basis of valuations of land and securities which may assess the mortgage debts at less than the loans made: the raoitga-gt-es to bear all such loss. (ft) Thai with respect to mortgages not discharged, renewed or transferred to the State, the rate of nteresl on the debt (o be in reduced alio to he fresh valuation of the and and securities; ilie'mortgagee o bear such loss also. WHAT THIS WOFLI) LEAD TO. For the Government to borrow ;ix millions a year in addition to all ■ Iher borrowing is a strange proa.sal to come from a (tarty which ieclares that New. Zealand should Yce itself from the “fetish" of the ■.oiulon money market. Such heavy /arrowing would force up the rate >f interest. In addition the State ■thick on private money lending by /leaking and amending of condiloiis of private contracts would undoubtedly drive investors to take their capital elsewhere. There can ic no doubt: that were the provisions of this amendment to be adop,ed it would result in driving capital •ut of the Dominion, make it much more difficult to secure money from .upside except, at excessive rates if interest and generally unsettle and dislocate the business of the • ountry. With much less private capital in circulation and money •dearer in every direction, which would in consequence follow, farmers, traders, industrialists and wage earners would beyond question, suffer severely. 'fhe only excuse that can be made for those who put forth such contract smashing, unjust theoretic assumptions as a remedy for trouble, is that they mean well but are ignorant of wliat. they are dealing with. The question remains, should we have as legislators men who can present such foolish and dangerous proposals? STRIKING THE FARMERS. The Socialist amendment is put forward ostensibly to help the farmer. As a matter of fact it would I fit. the farmers hardest of all. Who would lend anything on broad acres in face of silch Stale expropriation? What rates would the farmer have to. pay for such money as they could gel ? Excessively high rates. Kwn if they borrowed from the Stall! the Government could only Lend, what it had paid dearly for. The evil attaching to the continuance of the Moratorium is that it operates in checking the free circulation on capital and makes it. harder to get by the farmers who need i;.. This Socialist provision would make conditions very much worse.

To present a semblance ol' .justice lo ;i proposition radically unjust, tlu- AmemlmeiiL provides that Hie mortgagee who is a practical tanner may lie given possession on append In the Land Court. This discloses that the party seemingly does not know that the Act applies to mortgages of city lands. Town hinds and business properly as well as farming and pastoral land. They commit themselves to the absurdity that a mortgagee who is a practical farmer could get possession of a business property in town if he had. lent on it but a mortgagee (not a practical farmer) could neither get possession of town property nor country land on which he had lent. In conclusion we doubt very much if all the members of Air Holland’s paily can seriously support this Marxian policy of expropriation he has- but dare they express their real opinions.' (Contributed by the N.Z. Welfare League).