PRIMARY.PRODUCT EXPORT VALUES

Evening Post, Issue 2, 2 July 1932, Page 10

PRIMARY.PRODUCT EXPORT VALUES

; (To the Editor.) \-<' \* : Sir,—ln an'article.'in your issue "of 28th June, dealing 'with 'diminishing numbers of live stock-in-New Zealand, 'you' 'use the termi '['the price level remain's "obstinateiy low."; -Had you,.used the term, exchange .'values1 of tfarm products remain obstinately out of level with, all other New Zealand values, you?would have more, correctly set out theposition. As "The Post" i» well aware, the internal price level of a country is arrived at, or made up from; average values of industry production, together with values placed upon wages, money,' rent, and a hundred and one other- charges of services. 'In a country such as New Zealand, -when exchange values of farm products are. completely out of equilibrium with all other values,, a falling off in .farm production is sooner1 or. later inevitable. Also ' when, as is the case with New Zealand, the falling! off takes place in the key or foundation I industry, the position becomes extremely serious for all sections of thepeople. I As has-time and again been pointed out by economists and others, unless overseas values materially and quickly improve for larm products, the only method of restores, equilibrium internally in.New Zealand to the price level, is either by monetary inflation of export values, or by further diastically cutting down air other \alues. "The Post" is insistent (perhaps nghly) that there must be no wilful inflation of farm product export values.^ Is The Post' equally insistent that other charges and services, such as wages, interest, rents,' etc.,, must by governmental action be further drastically reduced? If genuinely anxious to. prevent a falling off in farm production, "The Post" must answer this question, or show a third alternative. If ! "The ' Post's" solution is along lines, of further deflation, then it should sho\y clearly, where and how deflation is to take place. Th'e'day for generalities is past. ./ i-;^n;New Zealand there are some 45 million acres o£ occupied lands. Of this total, well on toward 20 million acres

are.; incapable ;of being farmed; for other than rasing wool anil .fclore stock*. Any stock fii'm will inform ''The 'Post" that over the past three years the greater poition of. this vast area -has Jailed, £o earn working expenses, much less interest or rent. Monetary reserves being now eaten up in most instances, capital iin the shape of stock is now being sacrificed. Perhaps with little reason, thousands of farmers' eyes are to-day turned toward Ottawa in the hope that a solution may there be found. Fanners therefore have some grounds for complaint against "The Post," in that it left no stone unturned in the. endeavour to prevent going to Ottawa the only Minister who from personal experiences knows all phases [of farming, and present difficulties attached thereto.—l am, etc., J

A. D. McLEOD, M.P.

SOth June.

.YOUTHFUL LOGIC

"W.T.C." writes:—

"I have a commodity for sale, niy willingness to. work, which no one will buy. I finished school last year at the W.T.C. Specialising in architectural drawing and building construction, I had drawings exhibited at the Winter. Show and was mentioned in thefannual report for my woodwork. My-father says the administration is comprised of able men who are making every effort to get the very persistent depression hanging' over us Jto movj on. He is at present living on his philosophy and relief pay. For myself I-am not old enough to qualify for relief camps. It is definite the majority of my schoolmates will receive no training in crafts until they are adults. It:is more than'possible they will never be absorbed in; any vocation for which our schooling was preparation. The proposition is 'Vocationartrainihg for a planned production and; a;nie&sure of distribution to make thisfGod's. Owi^'Country for all.'"