The Dominion FRIDAY, NOVEMBER 18, 1932. POLICY ISSUES RAISED

Dominion, Volume 26, Issue 47, 18 November 1932, Page 10

The Dominion FRIDAY, NOVEMBER 18, 1932. POLICY ISSUES RAISED

In view of the ruinously low prices still obtaining in New l * export markets and the relentless pressure of supplies, it is no wonder that some Coalition members of the House should be impatientof legislative sideshows. They probably have a restless feeling that fundamentals are being neglected in favour of . Some justification for this mood can be found in the miscellaneous collection of small measures introduced m the last few days by the Government. Typical in this class are the Bills requiring the dehorning of caSte and the numbering of hens. Whether they represent urban or rural constituencies, members have more serious things to think a^°U The core of the problem —and it is not peculiar to New Zealand —lies in the disparity between prices and costs. Incomings will not balance outgoings. Something has been done to lessen the• b u it still yawns openly. It cannot be ignored,. With the best will the world members cannot settle down to minor issues and they have taken their questionings to the Prime Minister. What to do about it. That was to act openly and reasonably. There is no point in magnifying such a deputation into a political coup. It would also be a mistake not to recognise the earnestness of those who stated their viewpoint to Mr. Forbes. In the country there is a feeling that the ground is steadily slipping from under the farmers’ feet. They are doing their part with production but financially they are going back all the time. And this is more than a feeling, it is a fact. Again, what to do about it? .... , . r , . That sort of question cannot be bottled up. It is far better to bring it out into the open. Indeed it is time there was a stocktalcing, a study of policies, an attempt to get down to fundamentals. Pullets can remain undocketed and cows’ horns be spared a little longer while attention is directed to essentials. Is there any remedy for our economic ills that rests within our power to apply? Certainly there is no complete remedy unless it be to continue reducing costs until they are again in equilibrium with prices. Others besides politicians would shrink from the sacrifices involved m the drastic readjustments such a complete policy of deflation would entail. The process of liquidation and writing down would have to be universal, embracing all values —labour, capital and land. The cure might prove worse than the disease. So the deputation of M.P. s suggested two other possible remedies, bounties on exports or a higher exchange. If either be considered, it should be recognised not as a cure but. as a palliative. Both are but cushions to break the full force of the price fall. They need not be ruled out on that account but .it is necessary to recognise that as a specific they are temporary and incomplete. It should also be remembered that New Zealand is already working on a high exchange. Her currency is over 40 per cent, off gold. The degree of depreciation may be carried to 60 per cent, and still not win economic salvation. ,

What members should avoid is any attempt to stampede a decision. They are right to declare plainly the precarious position of the farmer on whom we are all dependent, to bring the whole question into the forefront, and to insist that it is paramount. But fences should not be rushed. The various policies should be carefully examined to discover which is likely to prove the most practicable and effective, the least damaging now and later, and the fairest for all classes.