FARMERS’ UNION

Manawatu Standard, Volume LII, Issue 50, 29 January 1932, Page 8

FARMERS’ UNION

PROVINCIAL EXECUTIVE

VARIOUS MATTERS DISCUSSED,

The Wellington central provincial executive of the New Zealand Farmers’ Union met at Feilding this morning, Mr K. W. Dalrymple presiding. Also present were Messrs G. L. Marshall. f. H. Mason, L. Hammond, J. H. Thompson, A. H. Marshall, A. P. Howard, F. Cash, J. B. S. Dudding, L. Lambert, A. W. Amon, R. Hogg, D. D. McLean, G. Watt, W. L. Grice, W. Craig, D. L. Younger and J. B. Bradley.

COMPULSORY CONCILIATION. Referring to a letter from the Dominion secretary concerning the sending of the report of the National Industrial Conference to the executive, Mr Hammond said he had noticed that, whilst the Wellington executive was in favour of the total abolition of the Arbitration Court, the neighbouring executive at Wanganui was in favour of compulsory conciliation. • It was a pity , there was not unanimity in the matter. The chairman: The difficulty always is to get a group of farmers to agree about anything. Mr McLean said life was made up of compromises, and he was inclined to the view of the Wanganui executive. He .thought the view of the Wellington executive was inclined to antagonise the aims they were working for. ( The chairman said he could see no reason why the, executive should reverse its opinion at present, and m view of.the early session in February there was time to hold another executive.meeting to discuss the matter if it was. considered necessary. The discussion then lapsed. CAPITALISING OF INTEREST. The Rangiwahia. branch forwarded a remit to the effect that the capitalising of interest as carried out by the Public Trust Office was not in the best interests of the country. Mr Thomas, the Rangiwahia delegate, said he had nothing to add to the remit —it was just the general opinion held at Rangiwahia. Mr McLean said he knew of no Government department which conducted its affairs better than the Public Trust. He thought it would be wrong to handicap the Public Trustee in this matter, for undoubtedly the best was being made of the problems which cropped up. The Public Trustee administered money from deceased estates and the results obtained were evidence of the capability shown. Mr Grice said he was in support or Mr McLean’s ideas and'thought that as it was trust money that was. being used there should be no restrictions imposed. Mr Cash said he could not see any objection why a mortgagor who had paid off a considerable sum of ms principal, and had got behind in his interest payments, should not be able to have his overdue interest capitalised. Overdue interest payments were inclined to prejudice a mortgagor s affairs with the banks, and the capitalising scheme would.help him out. Ihe ■peaker thought that perhaps the executive could put forward a suggestion in thiß direction to the UovThe chairman said it waß a difficnlt matter as there were so many different points to watch. He went on to quote reports of applications for relief under the Mortgagors Relief Act. Mr Howard said Mr Cash had spoken only in the direction of table mortgages, and merely wished the department to have power to capitalise overdue interest. . Mr Cash Baid this was quite right and, although he understood that capitalising was carried out in certain 'cases, it would bo better If it were regularised and the department given power to apply it generally. In reply to a question as to the objection of the Rangiwahia branch to the capitalising of interest, Mr Thomas said the motion was not carried unanimously, hut the feeling was that overdue interest where a farmer was doing his best should be waived Bl Mr l “ > McL?an al h“d that the danger or unfairness of the proposal was that a lot of these remits were inclined to protect the mortgagee against the mortgagor or vice versa: As a matter of fact, at the present time the mortgagor was in a better position than the mortgagee, and undoubtedly the latter’s interest had to be protected for the security of the Dominion On behalf of the Rangiwahia branch Mr Thomas moved that capitalising of interest be not allowed, Mr McLean seconding the motion pro foma but on being put to the vote, no support was given it. Mr Cash then moved that authoritv he given to State lending departments, and under the Discharged Soldiers’ Act and the Public Trust that where a borrower was unable to meet his interest payments those payments should be capitalised.. Mr Cash said be would leave the time of the capitalisation indefinite, but he could see no hardship to capital in the motion. Mr Howard seconded the motion, suggesting that the limit of the capitalisation be the extent of the payments made off the principle of the mortgage. . The motion was carried. RECONSTRUCTION LEAGUE.

The Pelorus- District Farmers’ Union forwarded a circular outlining proposals for the formation of a New Zealand Reconstruction League. The chairman: What is the good of forming another league to try and do the same thing that the Government and everybody else is losing sleep trying to do now? Exchange questions and everything else contained in the proposal are the subject of the Commission that has been set up, and forming another league won’t help it. Mr Howard: I move that the letter be received. • This was agreed to. EXCHANGE POOL. Discussing the exchange question the chairman said it was a pity that the matter of the primary producers’ position should be stressed so much. It gave other sections of the community the opinion that the farmer was always only moving in his own interests and such was not the case. Mr Dalrymple thought the question at all times should be approached from the point of view of too welfare of the whole of the Dominion. There was no disguising the fact, he said, that the Government had heavy payments to make and if the farmer was going to try to do the settling of the matter of exchange he was going to do a big thing. Some authorities were in favour of a high rate of exchange, but there was no unanimity about the m Mr*McLean said there was no doubt that New Zealand was penalised at present by the exchange rate. New Zealand was in a better position than Australia with its Budget and yet its exchange position was worse. Mr McLean went on to refer to the exchange position of other countries when the chairman- interrupted to point out that as the subject was such a big one members had better stick to the New Zealand point of view. Mr Dudding contended that the exchange rate at present amounted to an export tax and he was in favour of giving free exchange a trial. Mr Howard also could not under-

stand why New Zealand should take a stand against the law of supply and demand. . The steps adopted in Australia seemed to be acting very well and he quite disagreed with the stand taken by the authorities in New Zealand.

■ Mr G. L. Marshall said it appeared that the banks and the importers at Home “had a crucifix hold on the Government,” and he could see no way out of it.

The chairman thought this was hardly the case and pointed out that life Government had 14 million sterling to find in London and would hardly sit down to a 10 per cent, exchange rate fixed by someone at Home. ' Mr Marshall argued that the anoihhly of the thing was that the exchange had always been against New Zealand in good times and now, when the farmer wanted every penny he could get, the exchange was rising to 10 per cent, and the experts were of the opinion that it would rise to 25 per cent. He was emphatically of the opinion that the farmers should press for a free exchange and non-interfer-ence from the Government. Mr Hammond then moved: That this executive strongly supports the Fanners’ Committee in demanding freedom of exchange, and urges the Government to immediately cease pegging the exchange rate which at the moment is acting detrimentally to the producers of the Dominion. Mr Grice seconded the motion, but Mr Howard thought it was hardly what was required. It was the exchange pool that was the objection and so long as there was a pool there could be no free exchange. Following a short discussion the motion was amended to read: That this executive strongly supports the Farmers’ Committee in demanding freedom of exchange and calls upon the Government to immediately abolish the exchange pool, thus allowing the law of supply and demand to operation without restriction.

The motion was then carried unanimously. , , Mr Dudding: Now what are wo going to do ? The export season is going on and if ever the Farmers’ Union should fight I think it is now. I think we want another Order-in-Council. - Mr G. L. Marshall: I am afraid that there will be so much quibbling about the matter that the export season will bo over before anything is done. The chairman: I think we can leave it to the Farmers’ Committee to watch the matter in our interests. The discussion then lapsed, DERATING OF FARM LANDS. Mr Hammond moved: That this executive is in favour of immediate steps being taken to derate the farms of the Dominion for all main highway purposes, and urges that this, would be possible by increased petrol taxation without increasing the g resent cost to the consumer. Mr [ogg seconded the motion but in discussing it the chairman thought it was wrong to ask for increased taxation.

Mr McLean also spoke against the motion stating that the. Government was helping the counties in rebates on rates from petrol tax monies. He thought that if any motion was carried it should be one of thanks for what assistance had already been given. Messrs Dudding and Younger spoko in similar vein, the latter pointing out the increases that had been made to county councils from the Highways Board for highways maintenance subsidies. The chairman observed that derating was one of the policy planks of the Dominion executive of the Farmers’ Union.

Mr Grioe said he could not support the motion if it singled out main highways. The highways were necessary to carry business to the backblocks. Mr Hammond said he was certainly in favour of total derating if it could be brought about. The reason why he had included “for main highways purposes” in the motion was because he thought that something would be obtained and “half a loaf was better than no bread.” f

Half the pounty rates collected at the present time were going for maintenance of main highways and although Mr Younger had pointed out that the Highways Board had certainly increased its subsidies it had to be remembered also that during the last 10 years practically every local body had increased its rutes and almost solely for main highway purposes. However, Mr Hammond was pleased to alter his motion, by the deletion of “for all main highway purposes.” Mr Mason moved an amendment that all reference to increased petrol taxation be deleted, this being carried. •