FARMER'S BURDEN

Evening Post, Volume CX, Issue 147, 19 December 1930, Page 13

FARMER'S BURDEN

INTEREST, NOT WAGES A REDUCTION IMPERATIFE "THE ONLY WAY"

(By Telegraph.) (Special to "The Evsning Post.") PALMEESTON N., This Day. Members of tho Manawatu branch of the Dairy Farmers' Union appear to be unanimous in the opinion that a reduction of interest rates would be of much greater . benefit to them than a reduction in wages. At their meeting yesterday ; some- strong remarks were made concerning the burden imposed by high interest, and a motion was recorded affirming that tho only way to help the farmer in his present crisis was to reduce rates of interest on mortgages. The chairman (Mr. is. Campbell) said he thought it was time some of of tho local bodies and institutions made a start with reducing overhead costs. The present low prices, he felt- sure, were going to prevail for many years, and something would have to be done. The primary producer had to bear tho whole brunt, and yet the farmers had 'no money. He thought drastic cuts should be started by the Government, from the heads downwards. It had seemed that the Unemployment Board might do some good, but what had happened? The. list of out-of-work men had grown by leaps and bounds since its inception. Then there were protective tariffs, like that on wheat, which were keeping up the cost of living, and they should be eliminated. WAGES NOT THE TROUBLE.. Mr. L. Poupard said that he was not feeling the pinch so very badly, but. all the same those farmers who were feeling it must admit that wages did not affect them very much. Yet when farmers got up and spoke of the present depression, all they could talk of was wages. It made one sick. A reduction of 25 per cent, in a farmer's wage bill was a mere bagatelle, but reduce his interest by 25 per cent, and he would be much obliged.1 Mr. Campbell thought that the Goyernmejit should make the start. . Mr. W. G. Short: "The Minister of Defence lias made a good job of it." The chairman: "We should congratulate him." Mr. Short: "A reduction in interest is the most important question to be tackled. We are paying from G to 7 per cent, interest on capital which is only.worth 12s in the &." "HIT THE MAN AT THE TOP." Mr. Poupard: "And it.is not a question of supply and demand; it is organised. Is there any solid reason for not reducing the interest? It can only hit the man at tho top who can best afford it." The chairman: "How can the Government do that? If it has borrowed^ millions at 5i per cent, and released it at 6 per cent., how can you expect it to bring the interest down?" Mr. Poupard, in answer to a question, said he would like to see the interest reduced 1$ per cent. Mr. M. Richardson: "That will not help the small man. much." Mr. F. J. Legg agreed with Mr. Poupard that the salaries of the men drawing £.14 per day should be cut rather than those only drawing 14s. There was too much in ,the way of overhead expenses in tho administration of tho Government Departments. Mr. W. H. Gimblett agreed that the rate of interest was the most serious hurdle that the farmer was up against. MINISTERS TRAVEL TOO MUCH. The chairman: "Wo have a Cabinet whose travelling expenses amount to £8000 a year above their salaries." . Mr. Poupard: "If a farmer is not worrying over his' interest charges he is all right." He moed: — That the only way that tho primary producer can be assisted in the present crisis is a reduction in the rate of interest on all mortgages. Mr. Short; "Everybody should bear the burden equally and not just one section." Mr. Campbell: "Quite so. There is no use reducing wages until the cost of living is brought down, and there is no use the Government trying to subsidise one industry and not another."

The motion was carried.