COMPENSATED PRICES

Press, Volume LXXIV, Issue 22435, 23 June 1938, Page 8

COMPENSATED PRICES

TO THE EDITOR OF THE PRESS. Sir, —In to-day’s issue there is another letter from “T.V.W.” in reply to a previous one of mine. He states that he is only in partial agreement with me because he is a moderate protectionist, and since I am an absolute free trader, there can be no agreement between us. What is “moderate protection?” Is it 50 or 100 per cent., or is the sky the limit as it is in the “protected” industries’ view? He wants to know what is to become of the workers whom he says will be displaced if free trade is gradually adopted. The j could be employed in the distributing industries. It would pay us to pension them off, but there is no need for them to be unemployed. Free trade would reduce the production costs in secondary industries as well as in primary production. The cost of raw material and'machinery is increased by the tariff. The price. of local material and machines is raised also by the tariff to the producers and passed on in high internal costs to the farmer, who cannot transfer it. If the secondary industries require assistance they could be paid a bonus out of the ground rent fund, which belongs in equity 'o the State. Regarding guaranteed and compensated prices, Professor Murphy calls them doles. Like myself, he is a free trader. These doles were introduced to sweeten the farmer, who is penalised by the protective tariff. They cannot help him because any increase in the price of foodstuffs must create a demand for higher wages. Neither the primary producers nor the manufacturers can sell at lower prices when their costs are increased by the tariff Like Professor Murphy, I. can see no

difference between the Labour Parfjf and the Nationalists in this matter The latter party is owned by the Manu4 facturers’ Association. The votinjff power of the employers is small, bus they can influence the votes of theif employees, who fear to lose their job* if : increased “protection” is- denied them. When this vicious system ol tariffs and subsidies takes root no gov* eminent can resist the demand to? more backsheesh. As you truly say» the position now is that all Industrie® are demanding subsidies. Who is to pay these doles but the consumer, mid how can they be paid if all industries are operating at a loss? lam not married to Mr Savage. I would vote for any party that stood for freedom of trade and social individualism. My power of option is narrowed down to a choice between Socialism and Fascism, and while I am not a Socialist I consider Fascism a far worse evil Regarding land values, the high price of land is responsible for most of the farmers’ troubles. He can never benefit by land speculation because hj* interest is in production and not id speculation. No farmer can live on rent.—Yours, etc., _ F. W, BOURKE. June 21, 1938. LSubject to the right of reply of G. W. Dell, this correspondence i® now closed.—Ed., “The Press.”!