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The Pamphlet Collection of Sir Robert Stout: Volume 65

Government Assistance to Farmers

Government Assistance to Farmers.

The Committee recently appointed by a meeting of farmers to consider Mr Newlyn's scheme for the reduction of the rates of mortgage interest met on Monday afternoon, at Seafield, at the residence of Mr Parsons, who acted as chairman. There was a good muster of members, only one Committeeman being absent.

At the request of members generally, Mr Newlyn read the various letters upon the subject that he had written to the newspapers. Allusion was also made to the questions put to different candidates during the recent elections, and to the discussion which took place in the House of Representatives on June 21.

At the suggestion of Mr Rule, the original proposal—" That the Government should assist farmers," was then read, and an animated debate resulted, the unanimous opinion being that no public man had given practical expression to his desire to assist in reducing the existing rates of interest on mortgage before the appearance in print of Mr Newlyn's suggestion and letters to the Press. The promoter said that if the Government would carry out the original idea, and guarantee even 4 per cent interest on the total amount placed on mortgage through the aid of the State, it would be a great saving to the rural population, in time as well as money. If adverse influences quite put the first suggestion out of range, the State might reasonably be expected to assist indirectly, more especially if all farmers to be benefited were willing, in case of necessity, to submit to a special tax to make up any deficiency in interest arranged for. He could not see any risk to frighten the most cautious, as the lower the rate of interest guaranteed the better would the security become, because the farmer who could pay his present rate of interest would be much more able to find the lower annual charge. Again, the mere cheapening of money for his farming purposes would make his property more valuable, consequently, the security would, under the conditions he proposed, be a much better one for the mortgagee. Arrangements of an advantageous character might possibly be made with a strong bank by a combination of farmers; indeed, he could see no safer or more popular way of carrying out his scheme than by forming an Association of farmers. In any case, the united voices of two or three thousand able-bodied, and fairly discontented agriculturists, would be more likely to disperse opposition, than would the writings of the most capable man they could engage on their side. He thought that, if a company were formed with shares of one pound each, they would obtain sufficient support from the farming community to enable them to carry out all the preliminary arrangements. Unlike most companies, they would rapidly acquire a working capital, in the shape of the mortgages, which shareholders would authorise them to raise money on. Of course the Directory would have to exercise all reasonable care in examining the securities they proposed to accept, and to offer again as security; but, once accepted, the whole Association's land would be secured to the bondholders in England or to the Government in case of State assistance.

A Member: How would you assist the farmer to clear off his present mortgage, if you raised the money in England; the deeds would not be given up without someone released them?

Mr Newlyn did not consider that the question just raised need cause them trouble. Any person who desired to take advantage of the scheme would certainly have to give the Association reasonable notice of such a wish, say, six months before his existing mortgage lapsed. If things advanced sufficiently to enable them page 19 to raise the necessary money in London, there would be little difficulty in getting it, or its equivalent, out here. He considered that the business of the Association in bills of exchange would be a very large one.

Mr Parsons incidentally remarked that he agreed with the last speaker as to the advisability of forming an Association. One man writing or speaking for two or three thousand, all of whom were ready to back him up, would be able to do, and get done, things which would be utterly beyond the power of an isolated individual, or, indeed, of a thousand people acting spasmodically. He did not consider that the transference of the mortgage securities would be a difficult matter.

Mr Strachan said that he certainly had never noticed any proposal to get the rates of interest on mortgages reduced before he heard Mr Newlyn speak at Mr Wason's meeting. Many farmers had talked the matter over with their neighbours, but had seen no ray of hope. The scheme before them was the first attempt, to his knowledge, to put the matter practically before them, and he thought it was about time for them seriously to consider so important a subject.

Mr Vucetich said it was especially necessary for those who felt the shoe pinching them to take the opportunity offered by Mr Newlyn's scheme. He thought that the proposed Association should be formed as soon as possible. Though the shoe did not pinch him, his pound would be forthcoming when required.

Mr Bruce was of opinion that nearly all the fanners on the Plains would be glad to join the Association suggested in the scheme, for the risk was nothing, while the chances of benefit were very great.

After some further explanations had been given, the following resolution was i carried:—

"That having fully examined into the merits of Mr Newlyn's scheme for reducing the rates of interest on mortgage, as explained in his published letters and address, this Committee is of opinion that the suggestions contained therein are worthy of the careful consideration and cordial support of the Government and the firming community of New Zealand."

Mr Rule regretted that Mr Newlyn's recent address on the subject had not been waited fully, as farmers in other districts: were not aware that a subject so important to their prosperity, he would almost say existence, had been carefully thought out, even to details. He felt sure that many farmers would be willing to subscribe a larger sum than £1 if they could be made aware of the feasibility of Mr Newlyn's scheme.

Mr Parsons said that although he had heard previously that Mr Newlyn had gone into the matter, until he had heard the address on the subject he was quite unaware of the skill and ability that had been brought to bear in building up the scheme before them. He would like to see the address printed.

Messrs Vucetich and Bruce also spoke in favour of the publication of the scheme, and its author was requested to carry out the wishes of the Committee, who would be responsible for the necessary expense up to £1 each.

It was decided to hold a Committee meeting at the Pendarves schoolhouse on Monday, August 4, and to invite the farmers in the neighbourhood to join the District Committee. It was decided to hold a monster meeting at Ashburton as soon as possible, and the meeting adjourned after a vote of thanks to the Chairman.

Canterbury Times,