THE FUTURE.

Auckland Star, Volume LIII, Issue 4, 6 January 1922, Page 2

THE FUTURE.

HOPE FOB l-tODUCEBS.

PRIME MINISTER'S OPINION.

"To a certain extent we arc in difficulties," said the Prime Minister when speaking at the banquet extended to the visitors at the opening .of the Waiuku railway yesterday afternoon. Mr. Massey said that the times we were now passing through were somewhat analogous to those of the 'eighties, but he did not think we were going back to that: there was no occasion for despondency.

In a period such as this, when we were recuperating from the effects of war retrench—lent was inevitable. The country had been called upon to face a heavy burden, and now it had to meet the interest and sinking fund on the tremendous sums borrowed. Other obligations were tor the maimed in war and their dependents. During the war period, too, the employees in many of the State Mrvices had been granted bonuses to meet the cost of living, and the time had now come when the Government had to ask them to accept less. Expenses had to be cut down in other directions. In a couple of weeks the full details would be given of what had been done, and what it was proposel to do. Retrenchment waa a difficult matter at any time, continued Mr. Massey, but when it had to be done in the face of falling markets it was a most difficult task. After avowing that the life of a farmer was a gruelling one at any time, Mr. • Massey said that the future had lately assumed a brighter aspect. He had forecasted, on his return from England, that the wool position would improve, and was happy to be in a position to-day to say, "I told you so." An improve-" ment in the rate of exchange would be to further assist in restoring prices. "The butter slump is not permanent," continued Mr. Massey. He thought that the 40,000,000 cases, in storage in England would be consumed in a few weeks. At thfe present time a conference was being held in Wellington to discuss what to do in connection with our butter at Home, and he waa not going to interfere with the producers. Dealing with meat, the Premier said that the position had reached such a stage when the Government recognised that it hadl to do something to bring things into a better ttftt. He showed how the producers' share of prices realised has dwindled from 80 per cent to 46 per cent. He did not say that the fault was all on the other side. The cost of production in this country must be reduced, and he hoped to be able to reduce the freights on the railways in time. Tbe desire of the Government was to see- the primary producer getting a fair return for his labour and capital invested. It was a time for co-ordina-tion anad organiastion. He refuted the idea that the meat pool proposal was a Socialistic experiment. This was an occasion when the Government thought it right that the State should be used to benefit the producers and people generally- It was not Socialism —it was co-operation. - -■■ - I