PRICES THEN AND NOW

Evening Post, Volume CXXVI, Issue 89, 12 October 1938, Page 8

PRICES THEN AND NOW

FARM AND FACTORY

REDUCED PRODUCTION

The claim that "prosperity is here and that the farmer and manufacturer benefit because the Government has placed purchasing power in the hands of working people" is challenged in a combined statement issued by the New Zealand Farmers* Union and the New Zealand Manufacturers' Federation. "It has been admitted," they state, "that farm costs are equal to those ruling at the time of peak prices in 1929. In addition to this the graduated land tax has been imposed. When, however, prices ruling in 1929 and prices ruling at the present time are compared, the result is illuminating. The following prices have been brought to, the same currency basis for purposes of comparison:— Stg. stg. sts--1928-29. 1937-3 S. 1938-39. Butter, per cwt 158/- to 184/- 112/- 124/3 (Guaranteed price.) Wool, per bale £21 £11.3 £! , "The value of our exports expressed in terms of New Zealand currency was £3,000,000 less last year than it was in 1929, while at the same time the farming community produced in volume of goods half as much again as it did in 1929. So far as the volume of production is concerned, however, it should be pointed out that our dairy production is starting to diminish. Last year the volume of dairy production declined by 6.6 per cent. "In regard to the manufacturing industries, while there is no doubt that the year ended March 31, 1937, was one of high production and high employment, the warnings given to the Government by leading manufacturers have, since then, been justified only too amply.

"In one city the following are the employment figures for three industries as at June, 1937 and 1938, respectively: 506 workers reduced to 376; 339 workers to 219; 305 workers to 258. Every local industry subject to the competition of imports from lower-cost countries is faced with a most serious situation. The gap between costs and selling prices has now so severely shrunk that inducement to enterprise is being slowly strangled.

"Meanwhile, New South Wales is in a very different position, simply because industry there has not been subjected to unceasingly increasing costs. In July, the 42 large factories which the Government Statistician uses as a regular basis of comparison, were employing 1100 more workers than in July of last year—an increase of 5 per cent, in employment.

"In New Zealand, on the other hand, the relentless course of ever-increasing costs is a march out of industry into public works paid for by unemployment funds —and when industry is destroyed the source of the unemployment luncls is destroyed also,"