SOLDIER SETTLEMENT.

Shannon News, 9 June 1922, Page 3

SOLDIER SETTLEMENT.

IN A PRECARIOUS CONDITION. •»

R.S.A. DEMANDS IMMEDIATE REDUCTION OF LAND VALUES.

MINISTER SAYS THE TIME IS NOT

OPPORTUNE,

The deputation that waited on the Minister lor Lands and Repatriation (Hon. D. H. Guthrie) at the Kuku this week' introduced a subject in the revaluation of returned, soldiers’ Crown lands that will bulk very largely m the piiDUc eye between now anu the end ot ihe year. A at length oi the ease put beiure me Minister is given below lor tnai reason, and also* oecause tire matter has a direct and important oeai mg upon me prosperity ol mis district, rue deputation was organised by'ur. J. Graham Low, presiuem oi mo nevin n.a.a., and in addition to me speakers mentioned below, consisted oi li or 15 soldiersettlers irum the neighbourhood. Mr W. ii. Field, M.P., introduced the deputation, which met the Minister in the cheese store at the Kuku factory. The Minister was accompanied by Mr G. ft. McClure, District commissioner of Crown Bands, wnose Department handles the matter. "IMPOSSIBLE TO CARRY ON.” Dr. Gow, President ot t.lie Levin branch of the R.S.A., was the first speaker. On behalf of the-Association and tiie soldiers, lie expressed gratitude for the opportunity ot putting their case belore tiie Minister. The | Association recognised iully what liad been done by the country for the returned soldiers, and he quoted the opinion of Dr. Boxer, ex-Dominion president, on iiis return from-England, that the Dominion was doing more tor the returned meir than any oilier • country in the; Empire. The Discharged Soldiers’ Settlement Act had been asked tor by the’ soldiers, and they still believed, in spite of the present difficulties, that it would prove a benefit to the settlers and country. “But,” continued the speaker, “under the circumstances that have arisen, it will require immediate and decisive action on the part of the Government to extricate the settlers under the Act their present untenable position, and to make it possible lor 1 liem to carry on their holdings. The members oi this deputation, representing the settlers them-elves and every section of the business and farming communities of the county, have given serious consideration to this question, and we are 'unanimously of the opinion that the only solution lies in an immediate reduction of tiie capital value of the land and improvements held by the settlers under the Act. The present valuation was based on the earning capacity of the land when prices ot products were at a phenomenally high level, and tiie improvements were put on the farms when materials and labour were at peak prices. Now that prices of products have fallen, the valuations no longer hold good, and the soldiers here find it impossible to meet their liabilities. LIVING ON THE DEBTS.

“The IUS.A. has had the services of a skilled accountant, who has .gone into the finances of the settlers affected in this settlement, and at Oturoa, and we have prepared for your consideration a tabulated statement showing each man’s position. These 1 - figures will show That it is absolutely impossible tor these men to carry on, and unless they are granted immediate and permanent relief they will have noalternative but to abandon a hopeless struggle and give up their holdings.” The statement was handed to the Minister. Dr. Gow said that if the capital value of the land and improvements plus the stock purchased was taken and compared with the receipts for last year, it would be seen that the men were not receiving G per cent on the capilul value, or little mui e than their interest. That did not allow anything for overhead charges or the men’s labour. They had been subsisting practically on 1 their unpaid rent —living on their debts. No man was satisfied to go on long under those conditions. Ministers had assured the soldier-settlers That the Government will stand by the genuine triers and that they would put no man who was a trier off his farm. But wliat man wanted lo be kept on a farm when he could see no hope of ever mak'ng any headwav. Under present conditions not one of these men was as well off as the wage worker, apd every one realised that he is up against impossible odds. These men had proved themselves fighters, and the record of the New Zealand Division was prool of their tenacity and endurance. All they asked was" that, the odds against them should he reduced, so that with courage and endurance, and with strenuous endeavour they might make good eventually. IMMEDIATE RE-VALUATION NECESSARY.

What was the alternative if these men walked off their farms? asked the speaker. The farms would fall back.on the Government’s hands. They would deteriorate as long as they were unoccupied. Other tenants would not take them up until ihe valuations were reduced. Why not reduce them now before others got the benefit of the soldiers’ labour. What would be the mental attitude of the men themselves towards society, the country and the Government if they had to go destitute into the ranks of the unemployed through no fault of their own. Twothirds of the Kuku men were married, and the speaker stressed the effects the insecurity and the shadow of debt would have on their women folk. The Government was trying to* help by postponing their rent but the R.S.A. thought it was demoralising to the men to put off their liabilities. It was getting them into bad habits and their position would only get worse all the time rents were being postponed and so capitalised. The Minister said that was the very thing the Government stood up against. Dr. Gow said he stood corrected. They had been under the impression that rents postponed were added to tne total of their liabilities. The point did not- affect his main argument, however. Last week, he said, the whole

attention of the Domiriion was centred on the peril that beset the Wiltshire’s men. The Government sent up life-saving equipment and did everything possible without stopping to consider the cost. It did not say to the shipwrecked sailors: “You stick to the ship, lads, and when title storm abates we will see what we can do to assist you.” The returned soldiers also wanted immediate assistance, and that was the immediate reduction of their valuations. BUSINESS «EN’S VIEWPOINT. Mr D. W. Matheson, Mayor of Levin, said this district was rarely honoured by a Ministerial visit, and they were therefore particularly glad to see Mr Guthrie amongst them. He appeared to have been impressed by the clear and business-like statement made by the Returned Soldiers’ President, but he was going to be still more impressed by the actual figures and the evidence of practical farmers that would be submitted to him. Certain made a point for their own purposes of putting the whole blame lor the soldiers’ difficulties on the Government. But the R.S.A. did not take up that attitude and the men were satisfied the Government was not to blame, and that it was willing to co-operate with them in finding a solution. The problem must be looked at from the national viewpoint. It not only affected returned soldiers but every individual in this country. Every allowance must he made for the men, the conditions. and promises made to them when they went away, the experiences they went through, which they only could realise, and the unsettling effect of all that on their lives. The soldier settlers were not asking for any gift, but on their return they had to have a reasonable time tO' find themselves. The slump came on many of them before they could do that. • They had had to make necessary improvements at the highest peak of costs. The country must realise that the experiences these men had gone through, and their state ol mind, was such that they were inclined to throw up the sponge in the face -of their present difficulties. Here in the Kuku they had absolutely the finest land in the Dominion, and the men were hard toilers and honest tryers. If they could not make good under those conditions, what chance had men on the poorer lands throughout the Dominion? Mr Matheson said he was quite convinced the only solution was to write down the value of the land. That method was sound economically, and one every businessman had had to face. The difference in the soldier settler's case was that he had no reserve to fall back on—he had had no time to build up a reserve. The next question was: What were these men going to do for a living if they walked out of their forms? What would happen to their land? Who was going to take up the proposition? If the men went out on the road at the present time they would find no employment offering, and in the final result it would mean taxation to find them work. There was also the loss to the State by the deterioration of their properties, and reduced production while waiting tor another farmer to go ill. He believed that this loss would be very ' much greater than the reasonable, writing down of land values would entail.

Continuing, the Mayor made a idea on behalf of the wives of the soldiers, who not only had to attend to the housework and families, but go out on the farms to assist. What encouragement was offered them, and what chance had they of bringing up their families reasonably under the conditions prevailing to-day? What was the state of mind of these women, with the thought ever-present that at any time they migl>t have to give up their first home. That was a consideration quite apart from any material or commercial element. The men had made great sacrifices, and it was up to the general community to see that they were fairly dealt with. The Mayor said he was satisfied the Government would look at the national aspect, and would do all possible to relieve these men who were in such dire straits. So far as the deputation was concerned, its question was: What is the best form of relief the Government can give, and how: soon? Mr C. 11. Martin. President of the Levin Chamber of Commerce, added a welcome on behalf of Levin. He said this demand for revaluation was a spontaneous movement. The Chamber of Commerce composed largely xf businessmen and farmers, was In full sympathy with it. The men round Levin were real triers, and doing

their best. There was no question of blame in the matter. When the men I came back no Government could have i withstood the public demand for the purchase of land for them, and now j public opinion would be behind the

Government if it made a revaluation, and gave immediate relief.

NO INCENTIVE TO DEVELOPMENT. Mr G. A. Monk, chairman of the Horowhenua County Council, sais he v. ;S very pleased to welcome the Min-

ister to the county. He had little to add to the previous remarks. They were from the town point of view, and he could speak from a practical standpoint in, regard to the class of land. He believed the Kuku was some of the best land in the Dominion, but it required development. That was absolutely impossible under present conditions. There was no incentive for the soldier settlers to develop their land. If they could not expect any relief, then the Government must expect the land to go back. It was a matter that must receive immediate

attention. The men must be able to see some light ahead. If a loss had to be made, why not make it now and keep the men on their land? FARMERS’ UNION OPINION.

Mr A. McLeavey, President of the Ohau branch of the Farmers’ Union, said the Minister knew the Farmers’ Union never asked for anything unwarranted. He was just back from the Provincial Conference at Wanganui, and he would have liked the Minister to have heard the discussion on the subject there. The general opinion was that an immediate revaluation was absolutely necessary. Mr McLeavey said he knew everyone of the Kuku men personally, and believed that if given a fair chance they would all make good. As the Minister was an old farmer, he did not think the appeal would fall on deaf ears. PRACTICAL FARMER’S FIGURES. Mr R, G. Walls, speaking as a Kuku farmer, said he took up a section there ten years ago. He started with the idea that he could make the farm pay for its own improvements, but he found that quite impossible, and had to get other capital. Much more so to-day would a farmer just starting out have to rely on capital to carry out improvements. In some parts he could go into side-lines to increase his returns, but that was impossible in the Kuku, because when cropping had to be done it was always the busiest time of the year. Mr Wall said he was one of those who worked to have this block cut up. He considered; at the time that the block was a fair proposition. Butterfat was on the rise, and it .looked as if the men would make good. Several of the settlers ha l their parents near-by, and it was thought they would be assisted by them. But the slump came so soon that the parents were hard up against it themselves, and had had no opportunity oi helping. He had done all he could to advise the soldier settlers ar\d to help them on their farms, and he was sure they would make good if given a chance. Otherwise they would be put out on the road as casual labourers. That would be bad for the country in general. These men had had no capital to fall back on, and his experience was that it was quite impossible to take up a raw farm and make it pay out of profits. The Government was advocating a teduction of wages as a means, to reduce the cost of production, and it should also agree to a reduction of land values to be consistent. Butterwas down practically to'l/, and the general opinion was that for the next few years it would not rise above 1/3. He considered it., was impossible for any farmer to take up land at more than £SO per acre and make it pay at those prices. The Kuku settlers paid £65 and £75 per acre for their land.

Mr McClure: How much of it will carry a cow? Mr Walls said they could not allow more than a cow to two acres. Farmers could not go on the open market to replace losses in their herds. They must rear their own stock. In a herd of 30 cows this meant four calves the first year and four weaners and four calves the second year. A farmer would also need two horses to do his own work. Under these conditions the best of land would not carry more than a cow to two acres as a dairy cow r required twice the feed a bullock needed. Furthermore they must -guard against overstocking. Some of their nerds put up big returns but it took years to work up to that condition. It was a very good herd that averaged 25Qlbs of butter fat.

The Minister: That is a. fair average. Mr Walls: It is not a “scrag” herd. At 1/ per lb that meant a revenue of £l2 10/ per year per cow. Some of these men had to pay £ls to £25 for heifers when they went into these farms and it could, be seen that the revenue would not pay the'interest on the land and stock. The Government was taking from one-eighth to three-quarters of the soldiers’ cheques. ’l’he men had had to expend every penny ,of the surplus in the flush of the season and nothing had accrued for the winter and if the soldiers had all their cheques during the next few months there would be barely a living out of it. He urged that, the Government forego the winter cheques altogether in order to give the men a chance.

THE MINISTER’S REPLY. ’" LAND PURCHASED ON IvUKU FARMERS’ ADVICE. The Hon. D. H. Guthrie thanked the speakers for their kind welcome. As Minister in Charge of Lands, the Discharged Soldiers’ Settlement Act and Repatriation he had had a great deal to do with the administration of these Acts. -The Government had given a great deal of time to devising means and methods by which soldiers could be placed on the land on the most reasonable and satisfactory terms. He reminded the practical farmers present of the arguments Ihey used to convince him that the Kuku block was one of the best things offered to the Government and Ihat the soldiers would do well on it. He recognised then that it was good land, but that it wanted improvement, but he was influenced in its purchase to a very large ex-

tent by the opinions of the practical larmers of the district. He had never been one of those, who had looked for-

ward to the continuance of big prices for produce. He knew perfectly well that any business was subject to rise and fall in prices and that depression and prosperity went in cycles. The Government was blamed for buying high priced land and it was said they

should have put the men on unimproved holdings in the back country and allowed them to fight out their own salvation ,but. what would have happened if they did that. The Government was determined to do what was fair and right, and it was not prepared to send these men to break in gum and pumice lands, which was practically all this country had to offer at the present time in unimproved lana.

The Government saw that it would have to buy improved land, especially for men suffering from disabilities. Then there was Clause 2, enacted before his time as Minister, which gave the soldiers the right to buy land from

private owners. Part of the Kuku land was acquired under that clause. A great deal had been said that day about what the Government had done, and he was sorry to hear it because

it was crying down soldier settlement. The Mayor: That charge has not been made to-day, sir.

Mr Guthrie: The whole trend of the argument was in that direction. Dr Gow and the Mayor protested that the deputation had no such thought or intention. HONEST TRIERS WILL GET RELIEF. Mr Guthrie said that so long as a man was a straightforward trier the Government would give him relief. His rent could he postponed under three heads for one, two or three years as the; case might be. At the end of that time, it could be paid oil in instalments spread over four or five years. Or, under the deferred payment system, amounts postponed could be paid at the end of the term, instead of taking ten years to pay off the land, it would take thirteen or fourteen years. The soldier settler was not the only one in trouble. The unfortunate civilian settler was in just as great trouble with no Government trying to lift him out of it. The Department advised men not to capitalise their payments because that was heaping up debts and putting a millstone round their necks. The Government did not charge interns t. on the postponed payments, which any mercantile firm would charge, but the Government itseli would have to go on paying the interest on the money advanced, to the soldiers. Furthermore, in cases of absolute necessity, at the end of the period, the payments would be remitted altogether. Some men in the Kuku had been working without making any payment at ail, said the Minister. The Government said to each soldier: If you can show us that you are making a reasonable effort to meet, the position, there is not the slightest fear that one returned soldier will be thrown on the unemployed market. He referred to the fact that the Land Purchase Boards included men with local knowledge. It had been stated they had bought land at high values. He stated there had been 706 transfers of soldiers’ lands in the Dominion some because of illhealth or because the men were unsuited or had made a mistake in their calling. The valuation of those 706 properties at the time of purchase was £741,000. Something was put on them by way of improvements. Those properties were; sold for £820,000, showing that they had brought £120,000 over what was paid foT them.

Mr Field: Did that not include the improvements? Mr Guthrie said it did, but the figures showed that the country was not going to disaster. It always took a couple of years, perhaps five years, before a settler got his place in order and saw daylight ahead. Exactly the same thing occurred in all settlement. “For Heaven’s sake,” he continued, “don’t, decry soldier settlement.” Mr McLeavey: We don’t do that. The Minister said he paid a great deal of attention to Mr McLeavey’s assurances w’hen he was purchasing this land, because he knew he w j as a practical farmer. Mr McLeavey: You did quite right in purchasing the land.

“DON’T BE DISCOURAGED.” . The Minister said he was quite casehardened to criticism now. He would say this to the Kuku soldiers: You have good land and you are* strong and able-bodied. Don’t be discouraged because the sun is not shining to-day or because you cannot pay your rent. There is always a way out. The Government will help every honest trier. He will have no chance of being put out on the road. Do not be disheartened because you have struck two bad seasons—and stick to it.” The Minister recalled some of his experiences on taking up settlement.

NO REVALUATION FOR THREE YEARS. He said the present was not the time for a revaluation, and the law provided that there could be no revaluation until there had been three years’ residence. Then it was attended by a provision that if a man sold out at a big profit after the revaluation he would be called upon to pay on the original value throughout the period. He advised the men not to hesitate in taking their cases to the Department. In Mr McClure they would find a sympathetic listener.

A soldier said he wrote to the Department. on April 27 and again since and had had no answer. Another seitler said he wrote two months ago and had had no answer vet.

Dr. Gow said it was well known that if the soldiers could get in touch with Mr McClure they got a fair and sympathetic- hearing--(“Hear, hear” from the settlers)—but. he was well guarded by his staff.

Mr McClure took notes of the cases mentioned for inquiry. The thanks of the deputation were expressed to the Minister for meeting the soldiers and the interview closed. The. Ministerial party was subsequently entertained at lunch in Levin, and had a round-table conference with the deputation. As a result of this we understand hopes are entertained 'of certain measures of relief i other than those indicated by the Minister in his reply to the deputation.