FARMERS' FINANCE

Evening Post, Volume CXII, Issue 17, 20 July 1931, Page 8

FARMERS' FINANCE

(To the Editor.)

Sir,—-In your, issue of 11th July you print a report of a lecture on farmers' finance given to .the Fanners' Conference by Professor TockeiyM.A., one .of our recognised economists. In his lecture he states' that, amongst other tilings, wages paid in New Zealand constitute one-half of the total costs, of production and that those wages costs were passed on to 'the farmer. Wheil emphasising that, the' wage cost was. the predominating factor, in the cause,of the heavy losses being suffered by the basic primary industries, I wonder why Professor Tocker did . not also talk of the basic, primary factor in the cost. of production, namely, land values. Farmers are not unintelligent, and call see -the truth as quickly and clearly as most people. ■ . ■- ' ■ If rents and Customs tariffs are'high, then wages must-be as high comparatively. In no event can wages be fc 'lqwer than the cost of the reproduction of the power to labour. Had everyone the equal opportunity to produce, there would be no necessity for trades unions, but so-long as private property in land is legal, while one man can live on the fruits of auother's labour, so long will the workers band together to compel 'a living wage in spite of so-called economists. If wages at their minimum are not to be based on the cost of living, under the present conditions, they must be based on something lower, which, of course, would be worse than slavery, as the slave owner at least kept his slaves in good condition for work. . It is reasonable, to suppose, that* every healthy adult man is capable of supporting himself as well as a family from the proceeds of his labour by working;a few days a week. As ho cannot do so,', we must come to the conclusion that he is incapable and wages are too high.' If wages are too high., yet the worker dannot keep himself and a family,-in' decent comfort and the necessaries of life, then tho wages must be brought down. That being the case, he will be more incapable than ever of sustaining his family,_ so the State must step in and subsidise his earnings. For the Stale to be able to do this it must have funds, and to get the funds the State must tax, and who foots the greater part of the bill? Why, the worker. So this theory is brought to au absurd conclusion. No, Professor Tocker is mis-stating the true position. Is the farmer _a . more worthy citizen than the mechanic or the seaman or.the labourer? Is he some super being that he must have all this cheap labour given him when he: is in trouble? Or is it only to "broad acres" that the knee is bent? The basic cost of production is the cost of land; High fluctuations in the cost of land must bring about relatively low production. One of the worst evils brought by the ability of riiakihg a profit out of land is that the farmer and his sons do not remain long enough on the same farm to enable them to acquire a thorough knowledge of its capabilities and of the treatment required to bring it to its highest state of production.—l-am, EARNINGS OF LABOUR.