RAPED FALL.

Press, Volume LXVI, Issue 20027, 8 September 1930, Page 3

RAPED FALL.

PRICE OF FARM PRODUCE. PRE-WAR LEVEL ALMOST REACHED. (P8833 ASSOCIATION TELEQEAiI.) INVEKCAEGILL, September 6. "JS'ew Zealand's trouble to-day is not wholly or even chiefly caused by the low prices received for farm produce. The main - difficulty is that one section of the community, and that the mostessential, the fanning section, has to suffer the whole of this drop in income while the rest of the community enjoy their artificial high standard," said Mr Adam Hamilton, M.P., in the course of a review of the present economic situation at the annual meeting of the Southland Farmers' Co-operative Association to-day. } Since, last year, he said, the farmers economic position had grown steadily worse and to-day was more unfavour-. able when compared with the average standard of living and reward for labour and capital than it had ever been in New Zealand's farming experience. If the present low prices for farm produce continued for long, coupled with the present high farming costs, not only would fanners generally, and less financial ones more particularly, be in serious difficulty, but the general financial stability and prosper--ity of New Zealand would be soriously endangered. Price Levels. Mr Hamilton produced a table he had prepared showing, a comparison of retail prices for all requirements of farmers during each successive year since the commencement. of the war, and the prices obtainable for export primary products. These figures showed that export prices had fallen to 18 per cent, above pre-war level while retail' prices for farmers' requirements were 64 per cent, above pre-war. The table, showed that for the farmer to receive an equal reward with the rest of the community he would need to receive nearly • 1925 prices for his produce. These prices were as follows:—Butter 17 Jd per lb, cheese 9d per lb, meat 7d per lb (average), wool 20Jd per lb. "Any thinking person will realise that these prices will not be obtainable and as farmers are now back approaching the 1914 level it behoves the rest of the community to get back to near that level. so that farming costs will nearly harmonise with the price of farm produce," he said. Herein lay the whole problem of land settlement and unemployment. It was unreasonable to. ask peoplo either to. take up land or stay on • the land under these conditions. Farmers would have no reason to complain of the low price they received for their produce proved the goods they had to buy wore likewise reduced. This problem of high internal costs was at present causing Australia serious financial and economic embarrassment, and unless all sections of the community in New Zea-. land were prepared in the immediate future to grapple with and rectify this inequality, the same serious result was not far distant in Now Zealand. Nearlng Pre-War Standard. "In my opinion this can and will be done only when farmers organise to; make their voice and voting power effec-;. tive in the councils of the Dominion.-' To prove the soundness of this ,contsiv tion we have only to take the' figures': of the 'Economist' of Great Bfitjiro whicK compiles statistics of. Vfcorld prices. These, figures show that since the war up 192? world prices havo remained; peO tween 40 iand 70 :per cent; above pr«- ; level,, but from the beginning ;of !• 1029 world prices. have been rapidly ■] falling, until- in June of this: year-'the?;' stood at only 13 per cent. ■= above Ijhe--191- level.: -It therefore behoves .New Zealand to' take serious heed of '-this important factor and set abotit putting' ;her-house in. order. It is impossible; for New Zealand to become a self-con-tained country. We are yitally affected by world prices as we have to sell our exports in the world's markets and pur present low prices for farm produce practically harmonise with world prices and these have all the appearance .of continuing for some time on this Tow basis."