DAIRY PRICE

Press, Volume XCV, Issue 28314, 27 June 1957, Page 20

DAIRY PRICE

Mr R. G. Young Replies To “The Press” “In your issue of June 19, under the heading, ‘Guaranteed Price for Dairy Produce,’ you say: ‘This credit would bring no further goods and services into existence’,’’ says Mr R. G. Young, deputy-leader of the New Zealand Social Credit Political League, in a letter to “The Press.’’ “You overlook that this free credit issue would at least maintain and probably improve the present volume of dairy production for the benefit of all. On the other hand, a cut of, say, 2d per lb butterfat, would tend to reduce the volume of production, plus a shrinkage in the money supply of the country, to the detriment of all. Surely in New Zealand, we have a perfect right to pay any price we like in our own money. So long as there is no deliberate, attempt to undercut the British market, there can be no legitimate complaint by other traders. “In your final sentence, referring to the use of Reserve Bank funds for capital works, you compare that action with that of a private borrower. You say: he has something to show for his loan and so has the community-.’ Just where in the public accounts does the community get credit for these public assets? This is just what Social Credit is asking for—true national accountancy which does give the community credit for its own assets provided from past and present resources in manpower and material.’’ TMr Young’s assertion that to keep the guaranteed price at its present level would maintain or increase butterfat production while to reduce the guaranteed price would reduce production is at least arguable. It is certainly contrary to experience in the depression. But, supposing it were true, his plan would have the effect of discouraging either (a) a reduction in costs or (b) a switch to a branch of farming more profitable to the farmer and the community. If Mr Young asserts the right of New Zealand to pay whatever it likes for produce regardless of what it will bring on the market, he must concede the right of other countries to take what action they like to prevent dumping. As to the national assets built with loans for capital works, Mr Young can find them listed according to departments in the Appendices to the Journals of the House of Representatives.—Ed., “The Press.”]