Critical Position of Farmers and Graziers.

Manawatu Standard, Volume XI, Issue 1648, 2 March 1886, Page 2

Critical Position of Farmers and Graziers.

. IBy an "Old Farmer." | The following is taken from the New ' Zenlan'rl Industrial Gazette : — The condii tion of the farmers of Great Britain has been a fruitful text for writers on agriculture i6r somo time past m the Old Country. Innumerable have been the suggestions to remedy the evils that have come like an' avalanche upon the British farmer during the next past few i years. But the only sure and permanent cure for-the tenant farmers -of .the Old Country is a great reduction m the rents, coupled with soina fair and commonsense compensation for improvements when about to leave their farms. The stern facts of ruined tenants and unoccupied lands will ere long compel the aristocratic landlords to lower the rents to* a figure that will enable agriculturists to live out of the profits of farming, and not as thoy, have been doing foir years" past, out of capital.. The position of the New Zealand farmer and grazier is m some respects andin some degree analogous at the present time with those engaged m the same industries m the Old Country. There is this difference, that m the case of our large graziers they are the tenants of the State, and our smaller farmers are chiefly freeholders. , The great fall m the price of wool, mutton and tallow has already seriously crippled many runbolder-s, , and; not & few are crying out for relief m some shape or degree, that cry patently assuming a demand for a reduction of rent. The low price of cereals and other agricultural products has m like manner affected m a ruinous decree the nominally freeholding farmers. The financial position, of , both is worthy of serious consideration, for unles ssomethjng be done,and that soniethiiig'be the rieh't to do m the crisis?,' the ruin of these most important classes of producers will be more or less complete before long. Of course there may be an upward rise m the values of their staple products, and ruin may be averted and prosperity restored. But there are but faint indications of any material and permanent change m this direction. The subject of affording relief to the runholder or farmer is surrounded with difficulty, and cannot therefore be treated r dog i lnaticaliy; • No one, ho weyer and sagacious, can presume to write or speak authoritatively on a matter involving as it does the delicate relations of landlord and, tenant, and still more difficult connection of mortgagee andjmort.gagor. Both m and out of Parliament 'there have been mooted projects for oW taming cheap, money fqr farmers, and^ Sir Julius Yogel with his usual facile rediuess has- propounded a method for realizing the ' desired object! ' But I have, m common, with every prudent -man, a decided objection to have thejGovernment interfering m the remotest de- , gree with financial operations ot such a nature, and experience of the extravagant management of any and every New Zealand Government where borrowed money is. being handled should at once and forever exclude the ' idea 1 of appealing to the State ' for assistance. The question as to the expediency or inexpediency of reducing pastoral rents may for the present be left m abeyance, aithough it is one that will ere long have to be. encountered and dealt with. Throughout the agricultural districts m the Middle Island the wail of the burdened, farmer is being daily heard, and failures are becoming . frequent. Distressing as these things ,are they By no means sufficiently > illustrate the actual state of the bulk of the farmers. Were the veil removed that for politic reasons is thrown over, the connection between the financial companies, banks and private moneylenders and the borrowing farmers, everyone would see the absolute necessity for a' re-adjustment on fair an/| equitable terms, of their respective re'la" tiohs. The wise 'man hath said "the borrower is servant to the lender," and that is precisely what a burdened farmer is m these timea, of depression. He is a|t the mercy of the' mortgagee when he fails to meet his interest at the appointed time, and is liable to be turned adrift out 6f his farm upon which he may have spent capital, 'time and labor. He is at present protected m some degree from : such Unpleasant 1 contingencies, because the lender mig'kt become a loser by. re sorting to extreme measures with the bprrowsr. .-interest is simply rent m another form r and if it bei necessary and expedient m bid times for landlords to abate their . demands,, then it may be equally desirable and judicious chat morgagees should be reasonably indulgent towards their debtors. It is a somewhat curious fact , that writers evidently connected with * financial companies, &c, iri the controversy now going oa-in-a- portion of the southern press about reduction of pastoral rents and throwing up : of leaseSj;^.,&c., are Strong advocates for State liberality and .State assistance They do not, however, give a. hint ot any inclination lor intentian'to set an example of moderation and forbearance. I dOjricjt mtend it to be. inferred- jthat I |f avor m the slightest degree anything like' repudiation of ; just and honest;debt; I presume that most of the mortgaged ; farmers were when they; accepted;; their 'loans, m a position to make freewill and fair contracts, and so far as. legal right extends .they are honorably: , bound; td 'fulfil such; contracts. But should .the. mortgagees insist upon (having " their r I pound of flesh" and, without consideia:; ! 1 tion of altered circumstances, determine' | that- these contracts ,6e fulfilled, to the absolute letter; they may bring;, about such universal rain 'and bankruptcy that tliey; will suffer 'serious loss and. may find themselves burdened with " white elephants'?- in the shape of properties for which there is no demand at the price,. se T presented by their advances to their unfortunate debtors. Even if > purchased again by adventurous farmers they may be'compelled toaccept terms of interest far^below what'they inexorably, although legally, demand fronv their present mort- . ffagqrs. I feel perfectly convinced that ■ if a general pressure was brought to bear . upon the ; indebted; farmers of .-the' colony ' at the present moment,. ; that the ; result would be ! nothing short/ of a national calamity, and that, bad as, the depression nowis, it is not within reasonable coinpanson with that which woiildfoJlow anysuch suicidal course', I. personally know, that •there are many mortgaged-, farms m the Middle Island that would, not realise, the the money advanced on them if placed; m the market, and - that- the occupiers,: strive and slave as they may, cannot continue to pay the : heavy i interest they; have' covenanted to' pay. Such farmers' must sooner or lateri aupcumb,; unless! they can secure substantial relief from' their masters'ithe money slenders, m re-i duced rates of interest and some assured guarantee of forbearance as well. Take away the stimulus of hope from a far-; mer and a verier slave lives ' not; Can nothing be done to obviate the dire calamities that ?re assuredly threatening the very existence of the yeomanry of New Zealand? When the best permanent interests of two classes m the com :i munity are mutually at stake, and .when a little, wise concession and' Mr arrange; ment oin be made between them, it does not seem chimerical to hope tnat'rijeasures will be taken to bring about a' desideratum, of such transcendent irnnqrI tanceto the colony. Of! course,; it is competent for the one party to push tb extremities and for; the other, to submit with brokenhearted humility to the ruin of himself and family, ratner thair compromise or negqtiate . for change. I Such an aftituVie of ' cruel greed on the one. hand and of the. pride of humility ion the other is' to be deprecated, for m the infallible injury to both the "country must participate. It is difficult to indicate the modus operqndi of a successful ap- ,

proach between the borrower and lender m connection with farm property. Agricultural associations, ..as the recognised guardians of the interests of farmers, should at the- present crisis be zealous m this matter of reconciliation. The question should be fully and plainly discussed at specially called meetings of farmers, and some decision arrived at as to the nature and extent of the farmers' needg and the mode and degree of relief required. These' things being ascertained and formulatea,- deputations might be appointed to wait upon; the chief financial companies, &c, and consider together, on a basis~.of . mutual -permanent, benefit what steps should be taken for the realizatiion of objects of 'almost , national ia. terest. The rate of interest that is now i being charged is too great for farmers to pay with prices of produce so low, with wages so^high,' and- with unparalleled taxation direct and indirect, and nothing short of _2 per cent, redmtion will avail much Even if this were conceded there would require to be some fixed understanding 'arrived .«•■ at that forbearance would be exorcised ;untit ; times improve. These suggestions^ crude .and imperfect I admit, are intended 1 'to be given effect to only m such cases ; as, of handworking, honest and moderately _skilful iaraiersV A ! mortgagee should not have . any sentimental tenderness with a mart who cared not how he ruined the security by bad and dishonest farming, and it is but too, evident that many farmers, who have borrowed heavily and who get irretriev* ably-bejiindiwithitheir; payments do get; reckless, and lower the value of the property which they know is only theirs nominally. The sooner such men are cast adrift the! better for the actual owner; for themselves and the country. They are unprofitable servants, all of them. Ido not claim to be an expert m financial matters but I do claim to know experimentally that there is a gloomy outlook for both borrowers and lenders, and that now is a time for mutual forbearance and agreement. There is at. present a proposal being made by certain politicians to introduce a bill for the purpose ;of buying up some Jar«e estates for subdivision into reasonably rized farms, and m some situations there maybe some good reasons for undertaking such a work. But generally speaking if money-lending institutions and indivi; duals elect to take possession of mort. gaged farms there seems ; every probability thapthe advocates of such.a measure will soon ba enable to acquire lands at sufficiently- l ow prices to; iaduoe settlement <m accordance with -their ideas. Until land is reduced m price to its: economic value there is no hope of the f armors' -condition -being bettered 1 ) and the f whole tendency of current events is towards the realization of a. better state of things for intending purchasers than has too 4<jng prevailed under the excitement of the > land mania.: Most of the evilsarising from heavy mdrtgageg- t are the' result of .land speculation, and this again- was the inevitable outcome" of the heroic ..policy .. of 1870. It . is time that the-.colony .was settling down to the steady and gradual process' of safe and Successful settlement of its lands, and it is; time, moreover,^for money-lenders ifti face the question ot concession or loss, anrFfor burdened farmers to organize .to» , obtain relief ia. 1 so^me. sufficient degree / so as to prevent the disheartening spectacle of a ruined yeomanry. It is earn* estly to be hoped that no * suchfate will befall our farmers, for should it occur to any extent a " great blow and heavy discouragement " would be inflicted on the colony asa field for the best kind of inw migrants--|-men with money, experience .,; and brairig. I trust the tentative sugges* tions thus modestly offered will lead to a full discussion .pf .the; subject by. meu :v bJßtter qualified than th 6 writer, add result m an equitable solution of the problem.