FARMERS AND FARMING. No. VII.

Waikato Times, Volume XXVI, Issue 2110, 16 January 1886, Page 2 (Supplement)

FARMERS AND FARMING. No. VII.

"U.SORY."— This ia the hUunbling block over which so many commence to come to grief. But remember this, their fust •tcp in the downward c*m»pr i» foolishly and voluntarily undertaken by most purchasers of land. It may be upon aul'tle advice, but then they should have the courage and common sense to see that it is but a temptation of the evil one, knowing full well that the end must be disaster. I must write of things aa they are, not as they might be ; this must comu after. The fact is patent enough to all observers, that the groit majority of farmers are groaning under an immen«e amount of mortgage. Not that the mortgaging of land is an error or wrong in itself; it is the " usurious " rates of interest charged by the lander and unwisely paid by the borrower. This is one of the evils of this country. For be it lemembercd that this money, amounting to many millions, is mostly English capital invested in this country, and through what medium? Principally binktf, solicitous and loan and mortgage companies, and you farmers know in a painfully practical way tho amount of interest churgod in this country, which so far as agricultural and pastoral land is concerned may bo safely placed at an average of seven and a half per cent, per annum. In the farmer's report f rorn'which I gave extracts in a previous letter occurs this sentoace — 41 that you can get money advanced at 6 per cent per annum on the security of land, a very common rate of interest in New Zealand (?) "And this on the authority of an Auckland province man. Surely he meant to use the words "very uncommon." On the other hand, at what rate of interest is the English money advanced to these banks, loan companies etc. I cannot say from positive knowledge, but a reasonable, and I think not inaccurate, conjecture would plane the per centage per annum received by the English capitalists at five per cent as an average, for I cannot for one moment suppose that these companies are going to conduct the business of the English capitalist at a less gross profit than 2£ per cent, per annum. In support of this view I can only ask farmers to remember that our New Zealand business companies won't sell them a pound or ten thousand pounds of wool, etc , under a* 2 per cent. " commission, and even then they refuse to take any risk. So instead of the farmers of this country paying one interest only, they have to pay " two," which is nothing if it is aot downright disgraceful plundering. The farmers must blame themselves for it. There are many men who hare made vast fortunes by this prooess, and you need not leave this province to find them. M. de Sismondi says, " There is spoliation; the rich man robs the poor when the rich man draws from a fertile and easy cultivated soil his idle opulence, whilst he who has raised this income, who with his sweat bathes every production, barely exists, without being able to touch it." It is this selfish dishonest tyrant of Usury, which has and does in a great measure— along with other circumstances—damp all industry and improvements in farming in this country, and helps not only to strangle agriculture, but also many industries which might be established here under flourishing conditions. What a delight, to contemplate the unbounded privilege of paying one shilling and sixpence per annum for every pound sterling borrowed on land ! Be it remembered that laud under most circumstances is first class security, if only for this reason, that it cannot run away. It is the lender's interest to see that that the money leDt does not come up to the full value by a very safe margin. Hence in the face of such a state of affairs or system of plunder as this the voice of the whole of the sufferers from this injustice should be unanimous in supporting and pressing the Government of this country to borrow money at a minimum rato of interest for tho purpose of making advances to farmers. Merely, however, as a temporary relief. Personally Ido not believe in this system of Government " relief," either to find money for farmers, on the security of tho whole of the comminrty, or for borrowing money to keep our unemployed at work. Only there is this difference between the t\ro. In tho first instance the farmer would pay, or should do so, all charges of managing tho loan on his behalf in addition to interest ; iv tho other the burden falls upon the •entire community, for public works in this country rarely, in many instances for want of management, pay working expenses and interest. There is a way by which farmers may relieve themselves on their own responsibility and guarantee. But that I shall consider amongst the remedies for his present position. It is the most sensible proposal that the present Government has put before ourj representatives, viz., that of borrowing money to lend co the farmer. If this is carried out in its entirety what an immense saving i it wil) be, not only to the farmer but to ifiVcountry at large ! And what a blow to that monster " Usury," which will have its venomous fangs drawn and its teeth so ground down that in future its bite will be comparatively harn^ess com- I pared with what it has been in the past, J though under the present Government proposals and existing circumstances •unrounding the farmer, it will have some little play. It behoves the fanner to boware of it, for I do not wish the fanner to think that " Usury " only exists in the shape of excessive interest on the firstclass security of land. You all know what buying cattle, sheep &c., on "bills of exchange " means. I shall deal with this hereafter. Finally, I exhort you to urge the Government to get their "farmers' borrowing proposal " put into practical chape and passed as soon as possible. Ut Prosim.