FARMERS' UNION.

Press, Volume LX, Issue 18041, 5 April 1924, Page 7

FARMERS' UNION.

CUST-EYRETON BRANCH. The Cuat-West Eyreton branch of the Farmers' Union held the first meeting of the season in the Masonic Refectory, Oust. Mr G. Cowens presided. The secretary, Mr J. Horrell. read, correspondence regarding the farmeii:' Winter school. It was decided to hold the annual meeting in tho West Eyreton Hall on April 29 ih Oho new member was elected. Professor Conalitfe, who was to deliv* a lecture, was then introduced by the piesideut. He was received with acclamation. A most interesting lecture on '"ilie Coui6e of Prices" followed, Prof. Condliffe 'jxprtssmg his pleasure at being able to meet a representative gathering of farmers in order to discuss with them one of the most important economic problems of the present time. He emphasised the importance of farmers interesting themselves in economic matters and statin? their views. In this connexion ho referred to the appointment of a Taxation Commission which had been mentioned in the morning papers. It was of real importance that the interests of small larmers should be definitely represented upon any such commission. He then exhibited, a large chart on which was ehown the course or imports and exports over the past ten years and their connexion with the movements of bank credits in London as well as in iNew Zealand. He pointed out the occurrence of regular periods of reaction from rising and falling price 3, and showed how, in periods of depression, over-importation caused a Btrain on the credit resources of the ' Do- t minion. It was unsafe to depend upon prices continuing to rise. The most prudent of people would always be prepared for pri.es to fluctuato from the present slight recovery. Any period of export prices rising was always followed quickly by an expansion of imports. Owing to the length of time that was necessary before any.change in the values of raw materials could be reflected in higher pr.ces of imported manufactures, there was always a possibility of a year of low export prices coinciding with a year of very heavy importation. In such a case the strain upon the credit resources of the Dominion was severe. The great increase of imports in 1923, though it relieved the public finances considerably, might easily lead to such another time of strain. The extra receipts for wool this year had rot been accompanied by similar risc 3 in the prices of other exports and the importance of wool values might easily be exaggerated and reflected in further heavy importations. Tho lecturer then referred to the extraordinary currency difficulties to.be seen at present in various parts of the world, and particularly to the position in Great Britain and the Lnited State*. He showed the possibility of decisions being taken that would lead bac* to tho geld standard and lower the level c£ values. Ho urged therefore that farmers ou-ht not to rely on higher prices but should place their reliance on ir.ore up-to-date economical method* ci production and the highest possible stanced of quality. It was not likely that the markets of Great Britain would ccntinue to absorb large quantities of raw materials at high prices. Competition was increasing as production lecovered in Europe and >'cw Zealand must eitner aim at a high ouality market or at maximum produciion at low costs To rely on a nj.ng price level to extricate them from the _ difficulties the*, followed in the train oi the boom vears was a policy that could only be described r.s a doubtful gamole. \t the conclusion of the lecture a most cordial vote of thanks was passed to Professor Condliffe.