"PRINCIPLE SOUND"

Evening Post, Volume CXXV, Issue 131, 6 June 1938, Page 3

"PRINCIPLE SOUND"

GUARANTEED PRICE

CLAIMS BY MINISTER

(By Telegraph—Press Association.)

DUNEDIN, June 5.

"The guaranteed price is as superior to the compensated price as gold to brass," said the Minister of Lands (the Hon. F. Langstone), addressing a meeting last night. "The farmer understands the guaranteed price," he added, "but I will bet a guinea to a gooseberry than even though the compensated price has been adopted by the National Party, neither Mr. Hamilton nor any member of the party could give a brief explanation of it. "The principle of the guaranteed price is sound and simple and based on New Zealand conditions. The dairy farmer estimating his production knows what his income for the ensuing twelve months will be. In addition to. being fundamentally sound, the guaranteed price acts as a shock absorber against booms and slumps. "The guaranteed price demands common sense, good will, and intelligent marketing, both external and internal. For the first time in New Zealand history the State becomes a marketing force, with the result that the individual farmer is protected and safe- ! guarded as never before." It was well known that only properlyconstituted Governments could make trade agreements with other countries, said Mr. Langstone. Under the guaranteed price system the Marketing Department, under the control of the Minister, was empowered to do such things as were necessary in organising and carrying out a proper Imarketing system. This was now a definite State responsibility, and there was only one source from which butter and cheese could be allocated to the butter trade in the United Kingdom. "There is an even greater and more fundamental virtue in the guaranteed price than those already mentioned " said the Minister. "When butter or cheese is sold the sterling exchange becomes the property of the State, and is available for payment of obligations abroad and the purchase of goods required from time to time by the people. Formerly these exchanges became the property of private banks, with the result that the Government had to go cap in hand to them every time it required accommodation for money, either to pay interest bills or to purchase equipment. "It is said by our opponents that control of his product has been taken out of the farmers' hands. The intelligent farmer knows that this is not so. The great majority of farmers lose control of their produce when the dairy factory takes delivery of the butterfat. It is true that in co-operative companies the directors have the choice of selling to various Tooley Street merchants or consigning the produce through them to London for sale, but at that point the dairy companies lose control. The markets are juggled shamelessly, and a small New Zealand dairy company was impotent in the face of 'bulling* and 'bearing' of the market by speculators and dealers. The Government is in an infinitely stronger position to meet such a situation than a company or a group of companies. No sane farmer would countenance a reversion to the old order."