GUARANTEE PRICES?

Auckland Star, Volume LXII, Issue 38, 14 February 1931, Page 9

GUARANTEE PRICES?

DOMINION'S PRODUCE.

MR. RUSHWORTH'S PROPOSAL

"DIVERT MONEY TO PRODUCTIONS

(From Our Own Correspondent.)

MORRINSVILLE, Friday.

"Frankly, I am very much afraid o£ what may happen during the next 13 months," said Mr. H. M. Rushworth, leader of the Country party, in tha course of an address on the political and economic situation at Morrinsville yes-»* terday. About 60 farmers were present. After detailing the conditions on thQ gumfields of North Auckland, where thq people had gum that was now unsaleable and credit had been stopped at country stores, Mr. Rushworth added: "It is in moments like these I feel how we have frittered away the last five years. Wq had warnings that this depression would come, but we did nothing. "Frankly, I am not worrying if credit is stopped in the country," he continued, "It would not matter much. But thig stopping of credit will be felt in the cities." He was not blaming wholesalers for restricting credit to country retailers, for the wholesalers were having their credit restricted ,by the banks. He had been advised by an Auckland bank manager that the banks could not help this, for their depositors wera notifying that they would withdraw their fixed deposits. As a temporary remedy, Mr. Rushworth advised the Government, to guarantee a minimum price for our principal exports—dairy produce, wool and meat. Advances could be made by the Government to the dairy companies and sheep farmers on the basis of these minimum prices, and if the return after the produce was sold, was below the estimated price, then the balance would be made good to the banks from the Consolidated Fund. "Of course, the Consolidated Fund would have to be augmented," added Mr. Rushworth. He proposed to do this by drastically reducing Government expenditure, and also by temporary super income taxes temporary super import taxes. Critics might say the scheme was merely taking from one pocket to put into the other pocket, but the last pocket was the farmer's. It meant diverting money from wasteful to pro* ductive channels. The proposed remedy might not stand the acid test of economic principles. Emergency measures never did. But something had to be done immediately.' He quoted the opinion of the Canterbury Chamber of Commerce, a conservative body, that the reduction in the income of farmers would be £20,000,000 this year, compared with £8,000,000 last year. . Asked if he favoured the suspension or abolition of the Arbitration Court, Mr. Rushworth said he wanted to see the Court continue, so that it could prevent wages disputes being. settled by force. First he wanted Customs taxes taken oil wheat and other necessities, and then the Court could reduce .wages as the cost of living fell. ,