N.Z. PROBLEMS

Gisborne Times, Volume LXXIII, Issue 11836, 18 January 1933, Page 4

N.Z. PROBLEMS

SUGGESTIONS' TO RELIEVE ECONOMIC STRESS. farmers AND BUSINESS MEN CONFER. / y . AGRICULTURISTS’ HUGE LOSSES IN RECENT YEARS. ESTIMATED AT £200,000,000. (Press Association.] WELLINGTON. Jan. 17. The economic problems facing tlie country in general' and the farming community in particular were discisscd at a meeting arranged by The Farmers’ Union, 'to which -invitations bad been extended to representatives of other sections of'tb'e eoniinifm'ty. Commercial interests were represented, and several members of Parliament, including four Labor representatives, were present. On a show of hands it was apparent that the meeting was evenly divided about whether the discussion would be in public or in private, bat eventually it was decided to let the

press remain. Mr. IV. J .Poison, M.P., in big opening address, said that it was their object to help tlie Government which was distracted by many, grave difficulties, and bad all classes of the community' to consider. Any plan they might evolve'should he of benefit to the community as a wbole.The farmers did not wish to. suggest that any section be spoon-fed. Good tinies had created a psychology re, suiting in undue extravagance: Air. Poison believed that it would be necessary to undertake further economies in New Zealand, and that further economies were possible. He thought it would be generally agreed that the farmers had played their part during the depression, and to a remarkable extent endeavoured to counter the decreased value or production. At the same time the farmers’ capital margin bad disappeared in many cases. He estimated that in tlie last few years the farmers had lost the staggering sum of £200,000,000.

Many smali farmers Were living in want and destitution, but their plight was not generally known because they were in the back country. It was his belief that the people in the cities now realised their recovery and prosperity depended on the recovery and prosperity of the fanning community. It bad to be remembered that- any plan they could evolve could only deal with internal conditions. They were hopelessly unable to do anything to control external conditions. The speaker suggested that there were four problems that could be dealt with ; (1) The high interest rates. (2) Tlie crushing effect of high taxation. (3) High costs. (4) The reduced purchasing and spending power of the community. EXCHANGE RATE SHOULD BE RAISED The first proposal submitted to the meeting was that the exchange rate should be raised to a point at least equal to that of Australian and Argentine competitors. This was moved by Air. James Begg u;liose opinion was that some advancement oi the exchange rate was absolutely essential. City values would inevitably come down to a degree equal to that of farming property. The only hope for city industries was the restoration of the purchasing power for the farming community. The raising of the rate of exchange to the Australian level would not put the farmer on his feet, said the speaker, but it would be some help to him. It would be only one of many necessary things, but would be a big factor. He was wholly in favor of free exchange if they could get it, hut free currency exchange presupposed free exchange of goods and services. The process of rehabilitation must be accompanied by drastic reductions in costs, and probably a further reduction in interest. Nothing could keep interest down until the Government refrained from borrowing mg. and prevented local bodies from extravagant borrowing. The British Government had interfered with the exchange rate, to what extent he did not know. At any rate it had put aside a huge sum to keep the exchange where it wanted it. Air. Alaehin seconded' the motion.

PLEA FOR CURRENCY CREDIT REFORAL Air. R. E. Talbot, Hawke’s Bay; said that the exchange question should have been decided 12 months ago. The bulk of the season’s exports had passed from the producer to the exporter, and by the time New Zealand could benefit there would be another export season in progress. Raising the j* exchange fate would not solve the problem. The essential thing was to tackle currency credit reform. Air. Alellsop, Auckland, thought that the Farmers’ Union should adhere to its former principles regarding free exchange, and seek some monetary reform that would give reasonable help to the man On the land. Air. Hall, North Canterbury. regretted that tlie motion was not accompanied by some reference to a Central Reserve Bank." . After further discussion the motion was carried by 3d votes to 7. TARIFF RATES. Air. Alellsop moved that. there should be an immediate substantial reduction in our existing tariff rates, particularly \ritli the Alotlier Country and the rest of tlie Empire, and that the policy of the Government' should be to effect gradual periodic reductions in those rates until Empire free trade w as realised. (Proceeding.)