THE ECONOMIC SITUATION

Bay of Plenty Times, Volume LXXIV, Issue 14049, 2 May 1946, Page 5

THE ECONOMIC SITUATION

A BLEAK PICTURE

“Cataclysmic Conditions

Of Peace”

Annual Report To Athenree

Farmers’ Union

Although the year has been a vexatious and trying one from every point of view and a great deal of time has been taken up in considering matters affecting the proposed federation of farmers’ organisations, nevertheless the branch has continued to function as a representative body protecting and furthering farmers’ interests in the district,” stated the president (Mr C. A. Moore) in his annual report to the Athenree branch of the New Zealand Farmers’ Union.

“As an example,” states the report, ‘‘of the branch’s activities, it was early recognised that the drought conditions would seriously affect the farmers’ ability to carry their stock through the winter months so that the dairy herds would be in a position to commence the new season at anything like their previous standard of production. Representations were accordingly made to expedite fertiliser deliveries to the district, so that early autumn topdressing would assure a continuation of growth through the winter months. As priority had been given to the trucking of fertiliser to North Auckland the position was difficult and after protracted negotiations an agreement was reached, under protest, to ship fertiliser to Tauranga and thence by rail to Kati,kati at an additional charge of 4s 8d per ton to standard rates.”

“The shipping of hay from the South Island,” continued the president, “has not been entirely successful as a great many farmers have suffered such crippling losses that they are unwilling to incur a loan to pay the high prices ruling and so further mortgage their hopes in the future, to surmount the difficulties of the present. In view of the importance of food' production to the world to-day # as well as its importance to the national economy one cannot help feeling that the situation has been badly handled by responsible authority. The drought has been in the nature of a national calamity as an earthquake or any ether act of Providence, and measures taken to combat its evils, should have been on a national scale as a national effort paid out of national funds.”

“During the year,” stated the president, “we have experienced the change from cataclysmic conditions cf war to the equally cataclysmic conditions of peace. When it is realised that thousands upon thousands of human beings are facing the reality of slow starvation to-day, you will understand with an awful clarity that this is no mere spate of words. The stark inability of the human race to immediately reorient and reorganise itself from war to peace has been made glaringly manifest. The hopes of building a new- wo Fid economy based on the fundamentals of production and freedom of exchange on basic values has crumbled before the Bretton Woods agreement on international finance. The foundation of an efficient currency system are in a stable unit of value and an efficient method of maintaining it. Such stability does not exist when values arc fixed on the fluctuating values of a commodity such as gold. “Farmers in New Zealand,” he said, “arc eagerly awaiting the announcement of the next season’s prices for production. As the present, price agreement with Great Britain terminates in. June we are all conjecturing as to how far the straightened economic position of Great Britain will have its repercussions on the price levels of our export commodities and what adjustments will be made in our own Internal economy to meet such an eventuality as a lower price.

“In the meantime the rapid deterioration of our internal economy continues at such a rate that we aie rapidly approaching a position when it will be impossible to further prop up the jerry built frame work upon which it rests. In a recent assessment it was stated that we have in the Dominion some £4 0.000,000 worth of consumable goods whilst we had in circulation some £300,000,000 in currency. By the imposition of restrictions on trade and excessive taxation the Government have prevented the functioning of a freely competitive economy, whilst, they arc powerless to attempt-the discipline of the masses to assure production, so essential to a properly controlled economy. "Their avowed scheme, ’ added the president, “to redistribute the national income has resulted in placing tco much purchasing power ih the hands of those who spend it in the consumption of goods and in taking too much away from those who wou’d- normally spend it in increasing the production of goods. We are approaching a stage to-day when it is realised that to expand production above a certain level is to pay practically the whole of such expansion out in taxation. “In many secondary industries we observe a tendency to pay an everincreasing Wage rate under conditions that brings up the price level of manufactured goods above what is just and equitable. Under conditions wherein import competition has been eliminated and prices are fixed on costs by the Price Fixing Tribunal the consumer is lorced to

pay. „ , . .... -From this, brief resume, states the report, “members will realise something of the precarious nature of our present economic structure.” In conclusion, added the president,

he regretted very much to have to inform members that up to the present no solution had been reached of th’e differences existing between Federated Farmers and the Auckland Farmers’ Union. The bare facts wore that the Auckland Farmers’ Union had alpplied for incorporation under the 1908 Act. and the federation had refused to accept them. Negotiations were still proceeding and the possibility of the whole question being put to arbitration had been mooted. 1 However, one wondered, said the president, how a solution satisfactory to the requirements of the Auckland Provincial Farmers Union ' onl.T bo arrived at in vie*v of the set up of the Federation. This part, cf the constitution was ruled out of the order paper during the Rules Conference and now in spite of the diversification of farmers’ interests under modern farming procedure, members were forced to join up with their particular produce section in the federation, in accordance with z proportionate income qualification. However, the two representative farmers’ organisations could be of great service to the farming community provided they could work harmoniously together on matte) s ot common policy affect agimrefrhs

common policy affecting interests.

The president thanked those members. who had so cousin! o.utly attended meetings and assured them that their interest had greatly encouraged both the secietaij ami himself-in giving their time to conducting the business of the branch.