FINANCE FOR THE FARMER.

Shannon News, 20 July 1923, Page 4

FINANCE FOR THE FARMER.

LAND NOT OVER-VALUED. SCHEMES FOR PROVISION OF FUNDS. FAILING REINVESTMENT. WELLINGTON, Last Night. •It was desirable, said Mr J. D. Hall, at the Conference of the Council of Agriculture, to-day, to say a few words regarding farmers’ finance geb" erally, and. in particular to farmers mortgages now current, many of whiah were subject to the protection of the moratorium. Of the £240,000,000 worth of mortgages registered in New Zealand, it was roughly, estimated that about £50,000,000 was 'the face value • of the mortgages, ifor which provision had to be made at the end of next year, and it was believed that the greater part of this amount* was lent - by New Zealand investors, and very little came from abroad. The problem was (1) to satisfy these investors that the security upon which their money had been lent had not depreciated to such an extent as to justify the withdrawal of these loans, and (2) to obtain the re-investment of these moneys on reasonable termß as to rates of interest. “It seems," Baid Mr Hall, “as if the chairman and the ex-chairman of directors of the Bank of New Zealand were doing their best to destroy the confidence of these investors by- indulging in generalities as to New Zealand farm lands being overvalued. They are probably right as to some classes of land which have' been subject to over-speculation, but it is very unfair,to the farming community generally, and misleading to investors. It amounts to this: The basis of the business of New Zealand is the production, distribution, 1 and marketing of agricultural and pastoral commodities, and financial machinery has got to be designed and organised properly to accommodate this fundamental enterprise, and its aim should be to harmonise the system with the present process. Farmers want the help and sympathy of .the banks in the matter of arranging their mortgages, and it seems time ywhen. .-the bankers, merchants, and Chambers of Commerce should join hands with the farmers in the solution of their problems.; Failing any satisfactory arrangements with the present investors in the form of mortgages, there appear to be three - alternatives which might be adopted to provide for these mortgages: (i) That the Government should extend the accommodation provided through the Advances to Settlers Department, and further substantially increase ’ the. amounts of loans; | (2) the appointment Of a board of | valuers by the Government, and the I issue’ of Government .debentures up to |6O per cent, of , the ascertained | values of any farms, on the same terms I as to interest and repayment as in I loans by the Advances Department; j and, (3) the formation of a Farm- { «rs’ Land Mortgage Association, which should arrange - that * its farmer mem- ■ bers should assemble their securities and jointly pledge their credit to a substantial extent tfor the purpose of getting the investing public to buy the bonds of the Association, and thereby .provide funds to advance to its members, and that the State should, to some extent,; . guarantee such advances and assist in the initiation of the scheme."