MAJOR DECISION

Gisborne Herald, Volume LXXIV, Issue 22314, 26 April 1947, Page 6

MAJOR DECISION

PRODUCE PRICES NEED FOR EQUALITY DANGERS OF INFLATION The necessity for farmers, as the group in the community which furnishes New Zealand's principal exchange medium, to take action to ensure that commodity prices are equalised in this country was emphasised by Mr, C. H. Cooper, chairman of the Gisbornebranch of the Federated Farmers, at the annual meeting of that bodv on Thursday. Reviewing the present conditions of life in the Dominion, Mr. Cooper pointed out that imports of manufactured goods and of raw materials for domestic manufactures are financed by the sale of New Zealand's primary produce overseas. Due to the war, there was a world shortage of materials, an an understandable tendency on the part of most countries to exchange surpluses only for those commodities of which they have the greatest need. “Given some alterations to existing conditions, there is little doubt that we could produce a greater quantity of materials which would find a ready exchange overseas, and to this extent New Zealanders are responsible for New Zealand's present' troubles,” con-, tinued Mr. Cooper. “We all recognise that the easiest solution lies in an increased effort by the whole community, and yet the effort is not being made. Why not? Mutual recriminations provide no answer. Demands by Organised Groups “We must seek the cause of the unrest before we can apply a remedy. We must recognise the effects of the mental and physical stresses of war, but recognise also that any tendency to accept them as a lasting excuse for lack of action will only make things more difficult for those we most desire to help. Organised groups are putting forward demands, the granting of which they believe will result in the smoother running of industry. “Most of these demands appear to have their origin in the scarcity of goods and the limited purchasing power of money. If they are granted without a corresponding adjustment through- H out the farming community, it seems certain that our production of food, the most acceptable medium of exchange in the world to-day, will be seriously disturbed. “We are forced to the conclusion that a balanced economy demands that conditions in all major industries shall be comparable. The farmer must do his best to see that his conditions are comparable and that his returns are in keening with his responsibilities and the capital invested. A Big Decision to Make “My personal view is that as still more favourable conditions are being obtained in other industries, farmers have a major decision to make. They may be doing New Zealand a grave disservice if they fail to do their utmost to ensure that farm produce prices are placed on such a level as to enable farms to operate on the basis of th« . 40-hour week. “The 40-hour week is operated by practically every industry, so the farmers themselves are the only.people in a position to oppose its extension. The grounds for opposing it may appear very sound, but before doing so we must realise that we are out of step with other industries. Partly as a consequence, our production of food is not all that could be desired. “The issue is quite clear. If other industries cannot accept the farmer's standards, then the farmer, so far as is possible, must accept theirs. “1 wish to support the many responsible people who have warned New Zealand of the dangers of inflation. Increased remuneration and better farm conditions will only aggravate an already dangerous position if they are accepted as gifts to make life easier. They must instead be regarded as incentives to still greater production. “Farmers have a wonderful record of service to the community. I am confident that an improvement in farm industry conditions would be quickly reflected in an increased farm output. This would give us a correspondingly improved bargaining position for overseas goods, the lack of which is crippling many industries to-day.”