FARMERS' BORROWING

Rotorua Morning Post, Volume 2, Issue 348, 8 October 1932, Page 2

FARMERS' BORROWING

BANK MANAGER DEALS WITH COUNTRY'S DIFFICULTIES. "Probably the most important barrier to be overcome in the depression is the question of eonfidence. Legislators o-verlook the important fact that legislation that tended to destroy eonfidence or to prevent revival ,of eonfidence also delayed recovery," said Mr. A. C. Davidson, general manager of the Bank of New South Wales, in addressing producers in Sydney. "If a farmer wants to enter into an engagement to-day, how can the lender safely give him assistance after the experience of the last two or three years ? He lhight enter into quite a reasonable contract to-day, and have it varied by force within a few months. "One of the great difficulties in.Australia," Mr. Davidson continued, "is that we have not been through some' of the disastrous experiences of some of the snialler eountries of Europe and other parts of the world. There are very few men living who have faced a situation where credit does not exist. , But it is quite possible that could hap- ; pen, ahd that such interference by the Legislature would not put the business communi'ty as well as the producing interests of Australia in the position that they could not obtuin credit. "All of us recognise that many farmers require to have their conditio.ns ameliorated in export prices, but don't let us drop the substance for the shadow. We must try to maintain eonfidence— build it up and pursue a policy to try to stop the drop in prices and restore the prices to the higher levels, and tben we can take up the question of meeting individual eonditions which have been made tob hard owiiig tb the drop in prices. , "I think all of you will realise that you can have plans offered to you tb ■help the men who were out on the margins of wool and wheat production which will not help them ih the long "ruh, but proye a burden upon the individual and upon the comhmnity."