National Credit Issue

Dominion, Volume 30, Issue 130, 26 February 1937, Page 13

National Credit Issue

Sir, —In an article in Monday’s issue of “The Dominion” on London dairy values, the opinions of various members of the Wellington central provincial executive of the New Zealand Farmers’ Union show that the farmer is never satisfied.

The president of the quarterly meeting. Mr. J. L. R. Hammond, gives rather back-handed congratulations to the Government for its guaranteed price. He admits that the farmer would be in a precarious position but for the guaranteed price and then introduces the sinister word “commandeered.” I would ask Mr. Hammond in what other practical way could the Government give a guaranteed price without buying exports? Mr. Hammond is worrying about the lot of the taxpayers. I would remind him that newspaper propaganda would have one bglieve that trades unions put the Lab. our Party in office. This is not so. Had trades unions had that power a Labour Government would have been elected long ago. It was the taxpayers that elected the present Government, and should this Government try to pass Reserve Bank dairy account deficits on to the taxpayer —well, the taxpayer will give it to the present Government where the last Government got it—so why worry? Another member, Mr. G._L. Marshall, Marton, also has this worrying habit. His complaint is that foreign butter is selling at better prices in Britain than New Zealand butter, and he blames Tooley Street for this state of affairs. He might be right with regard to Tooley Street, for with our Minister of Marketing on the spot Tooley Street would probably prefar fields and pastures new. Cheap butter, as long as quality is maintained, should be a godsend to the undernourished millions in Britain. The New Zealand Government has not limited the supply of dairy produce for export, so the dairy-farmer can keep on producing and receive a price from the Government greater than he would receive on an open market. This being so, the Farmers’ Union should be grateful to a Govern ment that has lifted a branch of the primary industries out of the mire.

Uivery nation lias its Keserve Bank, which is always used when necessity drives. Britain is at present talking of •i £1,200,000,000 loan for armaments. A loan from where? Surely not from America, after the fiasco of the war loan! The Reserve Bank of England will provide

the credits for Britain’s national armament industries in the same way as our lieserve Bank is paying the dairy-farm-ers. Italy was supposed to be on the financial rocks, but when necessity arose money was found to wage a successful war, and later pass on surplus production to help a civil war. It has always been said that Germany was bankrupt, yet in one short year millions must hare been spent in rearming. If financial circles admitted, what is perfectly obvious, that any responsible Government can issue credit to finance anything for the national welfare,, the financial bluff of foreign prices for our exports and international loans would b_e ended, but by so doing the power of private money would be broken. —I am, etc., G. H. WILKIN. Wellington, February 23.