Slump and Rallies

Dominion, Volume 24, Issue 80, 29 December 1930, Page 7

Slump and Rallies

Sir,—lt appears-’that the present slump period is an ocasion for rallies by the various farmers’ unions. The farmers of this country meet and endeavour to instruct the Government and every commercial institution how to run its business. My opinion is that the New Zealand farmer is the basic cause of most of the depression prevailing in New Zealand. The freehold system of owning land has been a means of gambling.. The farmer for years has’ boosted up the price of his land, and has caused the Government and all valuers to follow his opinion. He has borrowed excessively on his land and stock, striking, values assuming butterfat to remain at T/6 and 1/3 per lb, as a production return, this amount being more than excessive; fid. per lb. return is ample to, form an estimate in valuing land and raising money for, a period of thirty years. Can you imagine any bank or commercial institution owning land or buildings to be constantly writing their value up: Banks; etc., write a certain amount Off their value each year, and this creates a reserve. i Are these farmers who tell us how to run the country the same men who had a big rally in the Wellington Town Hall a few years ago, acclaiming dairy produce control, and who were going to teach Tooley Street how to run its business? ... The present-day farmers attend a sale once a week, Whether they have anything to sell or not; they must have a knowledge of the markets and see what is offering and is being sold. This is a day’s work lost, of course, tp the land. Can you imagine all the master builders and architects having a day off each week to. visit all the i;ew buildings being erected in Wellington'! to study the latest methods of. construction, and new materials being put on the market? Now, why don’t the farmers .rally round the mortgagees and tell them they have erred and have caused the inflation 'of land values, have misjudged the permanent price of butterfat? It is their own business and they are supposed to stand or fall with it, mind their own business a bit more, work a bit harder and longer, and endeavour to meet all their liabilities. Discourage the Government from allowing valuations to be too high in the future so that they can establish reserves, and if they show, decent profits by this system they can pay larger taxes. . . In conclusion, if farms and produce prices are in a mess, blame your own methods and lack of foresight. Farmers should' get together and put their own business in J order, and not begrudge an honest working man 14/- per day when he has to pay 1/- per lb. for butter. — I am, etc., ALL AT FAULT. December 23.