DOMINION STABILITY

Evening Star, Issue 21116, 31 May 1932, Page 15

DOMINION STABILITY

SOLVING THE FARMERS' PROBLEMS IMPORTANCE OF OTTAWA CONFERENCE ADDRESS BY MR W. J. POISON, M.P. The importance to the whole of the Empire of the forthcoming conference at Ottawa was more than once stressed last night by Mr W. J. Poison, M.P., in an address given by him when opening the annual conference of the Otago Provincial Council of the New Zealand Fanners’ Union. Mr C. R. Shcat (president) occupied the chair. Mr Poison is the dominion president of the union. Mr Poison said that they were living in times that were entirely abnormal, and there were difficult things to put up with which had many people form the habit of discussing the slump from day to day, till one hesitated to say any more about it. However, he thought he saw already the beginning of an improvement on the horizon—though that improvement was nob with them at present. He had every hope that they would begin to climb in the immediate future, and lift themselves out of the slough that was affecting them so adversely. The time had come when they had to achieve results by way of remedial measures, or the position among primary producers would he such that they could not carry on. He hoped that the work of the Farmers’ Union would be helpful. It was the desire of those at the head to be on guard against extreme views which might irritate or act detrimentally to those who were _ guiding the ship of * State, and to give all possible assistance. LOOKING TO OTTAWA. Some countries were much worse off than New Zealand, and he thought that this small country could not look . within its own shores for an immediate solution. Nothing short of an international solution would bring about a permanent remedy. They were looking to the Ottawa Conference as the mainspring of anything that-might be done in the way of bettering conditions in trade and currency. _ He had persistently set his face against allowing anyone to ride his hobby horse before the union, for he wanted to see the statesmen of the Empire handle this big question at Ottawa., and then they might bo able to fit what was done there into their own work. To discuss all sorts of theories or follow any one school of thought could not advance them at the present time. TOWN AND COUNTRY. The remedies which had been devised in this country were going a long way towards reaching a balance in the meantime, and towards meeting obligations and keeping people from starving. Their exports were all primaryAll the burden, therefore, was falling on the primary producer. If they maintained or increased production they would go a long way towards rectifying the position. This idea could not be stressed too strongly to the townspeople, who were still nuder the impression that the farmers were reaching out for too much—for things to which they were not entitled unless the city people got them also. He could say that the Farmers’ Union was looking at matters from a national and not a personal viewpoint, and the farmers were very anxious to work hand in hand with their neighbours in the towns. (Applause.) He believed tbnt when the primary producers were able to export on a more satisfactory basis it would mean that the position in the towns would also be alleviated. Afte 7l mentioning production costs in the dairving industry Mr Poison spoke of the desperate state in which sheepfarmers found themselves, and expressed the hone that what was done at Ottawa would enable them to survive. By hook or by crook the primary producer must be encouraged to produce on a sound basis. A DASH OF POLITICS. “ The Farmers’ Union is a non-poli-tical body,” continued the speaker, “ but to-day, for the first time, there is a clear-out issue. Whether this country will become Communistic or continue on the way it has gone-in the past may depend on the outcome of this issue. There mav be different shades, but there are only two camps.” He had read about the outbursts of liot-headed young farmers in the north who had declared that they were the natural allies of the Labour Party. The farmers could never hope for relief from the policy of the Labour Party in this or any other country. (Applause.) During last session the statement had been made by the chairman of the Labour Party that, in order to save the country, it was necessary to cut out imports and increase exports. They all knew what happened in America when this was done. If thev cut out their imports and increased exports how could they be paid for those exports? It had been proposed also to increase the national expenditure in order to circulate money. Then there were the suggestions to increase wages and shorten hours. If they followed these arguments to a logical conclusion it would seem that they would attain the highest degree of desirability by cutting out work altogether. It was obviously absurd. The Leader of the Labour Party (Mr H. E. Holland) urged more production on the part of the farmer, overlooking the fact that a farmer worked 3,225 hours per year, while the industrial worker put in just over 2,000. It did not matter that the fanner was now working himself to death. He must continue to produce more, while Mr Holland tried to secure higher wages and shorter hours for industrial workers. Stating that he wished farmers to realise what the Labour Party had done, or had not done, Mr Poison spoke on what had happened in Queensland. PARLIAMENT’S WORK. Referring to the work of Parliament during the last year or two, the dominion president said he thought the Government ; had been a little too cautious in the legislative remedies it had sought to apply in the last two years. However, substantial help bad been given to the farming community by the reduction in interest, the National Expenditure Adjustment Act, the Mortgagors Relief Act, and the Mortgagors Relief Amendment Act. To-day tho man who frugally farmed his land could go to a tribunal composed of his fellow-farmers and get his difficulties discussed by it. Ho might thereby get his demand for interest postponed, his arrears of interest might he remitted, the amount of interest he had to pay might be reduced, or the date of repayment might be postponed. These things assisted many farmers who, in black despair, would otherwise have to leave their farms. In addition, Parliament had had to do a number of very unpleasant things. It had had to retrench, cut down costs, provide taxes to feed the hungry, reduce pensions, and reduce the wages of Civil servants.. These .were not

pleasant jobs, and the men who bad carried them out, knowing they were incurring great displeasure, were entitled to credit for having done the job and done it very well. (Applause.) He hoped this was only a temporary expedient, and that they would yet get back many of the things they had had to lose, but it was tho only thing it was possible to do. THE EXCHANGE QUESTION. - Ho thought that one of tho things the Government ought to have dope was to follow the policy of Australia and allowed tho farmers to get from tho markets of the world the just price of their products. (Applause.) The Government should have allowed tho exchange rate to go free. The soundest plan devised throughout the world to put a country back into a position of prosperity was through the means of exchange. Australia had already achieved results in that regard which Spoke volumes for the success of tho plan. (“Hear, bear.”) It had been suggested that exchange was actually inflation, but it was not. Exchange was an expansion of the currency when it operated in favour of the country. It was tho natural means of providing that economic equilibrium which must exist between all countries if finance was to be on a sound level. Exchange had these advantages: It prevented inflation or expansion from becoming unmanageable, it ienreased tho circulation of money, it increased the purchasing power of the. primary producer and the rest of the community, and it assisted the rate of circulation of money If they could increase the rate of circulation of money to two or three times what it was to-day they increased' the prosperity of every section of the community who participated in the greater flow. This would reduce unemployment and assist tho Government to get in its taxation. NO OTHER PLAN. To those who hesitated about exchange he asked, what other .plan is in sight? There was no other plan. Exchange was a natural assistance to recovery; otherwise, the country must continue to deflate capital, reduce wages, and still further reduce interest. This was the view of an Australian authority:—"Tho deflation that proceeded elsewhere was here tempered by a maintenance of the volume of credit which prevented tho Australian price-level from falling further in company with gold price-levels. It proved more practicable to alter rates of exchange than to push through a ruthless deflation of all prices and values.” In New Zealand the Government had adopted a deflation remedy, and had prevented the inflation that had benefited Australia. During the last few weeks the general manager of Dalgety and Co. *n New Zealand had paid a visit to Australia. As a result of his experience there ho went with a deputation to the Prime Minister on the question of exchange. He said he was amazed to. find bow beneficial exchange had been in Australia, and the people there were aghast at the idea that New Zealand had refused to adopt a similar remedy. “I want to say,” added Mr Poison, “ if this country is to be saved the only remedy is to lift the exchange, as Australia has lifted it, and that must be done.” (Applause.)