OVER-MORTGAGED FARMS.

Shannon News, 31 January 1922, Page 4

OVER-MORTGAGED FARMS.

PROTECTION WANTED. “POSITION MOST SERIOUS” (New Zealand Times) The need for some protection being given to farmerswho have become over-mortgaged, referred to in the douse on Tuesday afternoon, was discussed yesterday by Mr A. B. Fear, organising the Dairy f armers’ Union, in conversation with a Time srepresentative. Some farmers, he remarked, were so heavily mortgaged that their position was gravely serious. On top of this difficulty in regard to their land, he pointed out, it had to be remembered that the monthly advance made to the. farmer for his butter-fat had been reduced since last year from 2s to ,He could not be expected to carry on and pay his liabilities when he received such small advances. Mr Massey had referred to a reduction in mortgages. The Dairy Farmers’ Union, which was making representation/to Parliament, did" not ask for compulsory reductions of mortgages, but merely that protection and time should be given to enable the mortgages to be adjusted voluntarily. Stressing the need for something being done by the Government, Mr Fear stated th&t the present conditions were harassing farmers on high-pric-ed land all over the country. If they were forced off their land the ranks of the unemployed would be swelled, and the Government would have to come to their assistance. It was, therefore, felt that if immediate protection were given a lot of trouble during the winter months would be obviated. SPECIFIC CASES MENTIONED.

He mentioned as a case fn point a Waikato farmer, who had only one mortgage on his property and who had got six weeks behind in the payment of his interest. The mortgagee told him he intended to sell up on account of the non-payment of interest and the farmer had come to the union for advice. The mortgagee was a man in a good position and did not require the farm back. Mr Fear also mentioned the case of a farmer who had been eleven years on a farm of 140 acres and had improved it from its original state till it was now sown in English grasses and had buildings on it. The property had been Sold up on the non-payment of £l7l interest. It was at present shut up and non-pro-ductive and the farmer was living in Auckland. These were only two instances of several hundreds. A COMMISSION DESIRED

The power at present given to the mortgagee to sell up the farm in default of payment of interest, said. Mr Fear, simply meant that the farmer was deprived of his tools and put out of action. The union felt that if this, was not altered the credit of the country would be damaged; -while second, third and fourth mortgages would cease to exist. The union was asking the Government to stay all proceedings in connection with foreclosures until March 31, 1923, so as to allow time for a tribunal to investigate each case of distress. They were suggesting that a commission be set up for the purpose, representing the Government, the mortgagee &nd the mortgagor, and two farmers in each district. These men would act as arbitrators, and arrangements would be made for unusually high mortgages to be reduced and also for the reduction of the rate of interest to a reasonable figure. Where a farmer was holding more land than he could farm after; the adjustment, it was proposed that the farm should be divided into two or more parts, and be leased with a compulsory purchase clause, to the incoming tenant, the mortgagee to divide the mortgage in equal parts and thus relieve the farmer of half his liabilities. The Government was also being asked that the cost of necessary surveys in connection with sub-divisions and legal expenses in connection with transfers and readjustments should' be borne by the State.

If these proposals were adopted, continued Mr Fear, maintenance of production would be ensured, and the burden of the farmers would be alleviated. The mortgagee would be placed on a sound footing. In regard to returned soldiers who were in distress on high-priced land, the union suggested that a practical farmer be appointed by the Government to visit each settlement and give sound advice, and also to report on each case of hardship.