THE ECONOMIC LAW

Evening Post, Volume CXII, Issue 50, 27 August 1931, Page 11

THE ECONOMIC LAW

NECESSITY FOE ACTION

SHEEPOWNERS' POSITION

Tho necessity for adequate attention on the part oil Parliament to the problems of to-day was stressed by Mr. H. D. Acland, president of the New Zealand Shecpowners' Federation, at the annual meeting of the federation yes-

terday. • ■ "Last year I said that dellation of costs must; keep pace with the deflation in prices," he said. "Unfortunately this is not happening at the present time. I also said that tho main questions to bo dealt Avith by Parliament and politicians were, questions' not "of polities but of eeonomi c s. It is hard economic.; facts that have to be faced by us farmers to-day, and we must deal with them according to economic law, or go under.

"As New Zealand is dependent on its primary products for practically the whole of its outside national income, this cannot be allowed to happen, and the farmers budget must be balanced. If it. is not, then the country's balance must be painfully short, and unemployment and destitution, that is vow being felt, must get steadily worse. "Parliament.had apparently not attempted to balance its Budget along these hues, and so far from taxation costs being reduced, they are being increased, while- with respect to unemployment the principle appears to have been laid down; that everybody has a right to demand wprk at an arbitrarily fixed money wage, and if any person is not ablo to obtain a living then such person :s entitled to be. supported in some reasonable degree <oi' comfort by the State, which jaeans, of course, by the balance of indusUy. *Iv effect this is the same- thing as a claim by- the primary producer that if the public cannot buy his ]-^oducts, then the Government must take them at a, fixed price whother they are good, bad, or indifferent.. Tho problem is an economic one, however,- and much as wo wish to bco nobody .hungry,!or destitute, it is ■practically an impossible principle to' carry into effect :as a continuing policy. NOT WORTH THE MONEY. "One of the main reasons why there is so.inucli .unoinployuiont.or destitution at:the present time is because it does not pay to hire : the .services of- the unemployed, the workJ done.. not being worth tho money price paid for it. The results of the labour cannot be disposed of at a profit, and in consequence most unemployment or relief labour is really a levy on capital resources which aro being gradually diminished. ■■"'::' "The position with regard to unemployment appears to be ridiculous, farmers arc' being asked to givo cortain classes of employment on,' terms wliero the farmer is to find, food ;.nd lodging which ho cannot:: afford,' while, on tho other hand, for work that is essential to be done in the ordinary course of farming production ho is forced, under statute and awards, to conform to, conditions and suffer restrictions, and pay on a.cash .basis, in many cases 100 per cent, higher, than the, product of >tho labour-will warrant. . ; "Iho' iDain'tciiahco oi' standards of money wages ,on the present basis, as advocated by Minion secretaries.'. ami Labour membersiOf Parliament can Only bo done at the price of further uneln> ployiheut and destitution, as it ainiply amounts to a demand that tho incomes of Arbitration. Court workers shah :be maintained on a, preferential basis 'at the expense of tho rest of. the community. •' , •» '.'With.;, regard .-.to interest,; I migh'ir point out that. iu.l9oC, the ruling rate of interest on, farm < mortgages \v,a& round about 4 J per' cijut., less a mortgage tax of 6s 3d, so that tho mortgaged got at that time a not roturn of about 4 percent.; There is-:,very!little land mortgago money available to-day, as land for primary production for export :is in many cases a liability and iiot'an asset, owing to'excessive "laud and general taxation and high local rating. . - OVERSEAS PRICES. "Tho second:problem that X referred to, .that is, prices for our products overseas, is ono Now Zealand producers cannot influence to any appreeiablo extent.; There is at the present tinie:a world movement1 in ; the irodu'etion of tho,money paid for all products.. This matter,is exciting very much■ attention m Europe, at thr. present time, and-it would appear .to,bo; really a currency question .and due to' what is known' as tho. gold standard, tho effect'of the restoration of which has been to cause an appreciation of gold and in effect sudden .appreciation of tho currency. If this is tho case,-then.aii appreciation ,o± the curroney is just as .much a social ln« Um ** is depreciation or inflation. The position we farmers in New Zealand find ourselves in at the moment is that we are being called upon to repay debts contracted when the £ was or the value of. 10s. in pounds which today, may be regarded, of the value of 30s. Not .only is this so with regard to farm mortgages,: .but. it applies equally to all mortgages and debts incurred by persons who have built houses and have a mortgage theroon. It means that their equity, has, in many cases been completely wiped out, and all their' savings havo disappeared. In, other voids, a largo proportion of tho thrifty people of the community-are to be "doprived of their life, savWs. I say definitely thut no -Government could or iSen^ 10^ SUCU * thhlg as this t0