CAUSE OF THE SLUMP.

Gisborne Times, Volume LXXXIII, Issue 12703, 7 November 1935, Page 2

CAUSE OF THE SLUMP.

AIR. W. D. LYSNAR’S OPINION,

want of stabilised price FOR PRODUCERS.

In the course of Iris address in the City Hall on Monday evening, Mr. IV. D. Lysnar, Independent candidate for the Gisborne seat, stated that the Government had not grappled with the real cause of the- depression. Their policy had been palliative and had really aggravated the position. The root cause of the slump was placed by him before the Parliamentary Monetary Commission in Wellington on April 24, 1934," when' in the course of. his evidence, he stated :

‘The root cause of the present difficulties w r e are in, financially and otherwise, is want of stabilisation of the price that the producers get for their produce, and that is brought about by two causes—first, by want of credit through our present banking system, and second, because of a loose system in marketing operations ; and the trust combinations get in and take too big a share of the proceeds of realisation when it comes to the producers. Now', this process is going on. It forces down the price to the producer, and puts up the price to the consumer, w'ith the result that the finances and the commerce all the world over are controlled by a comparatively few' capitals to the detriment of the general mass. The question is: Who is to he nursed and protected?. Is it the few capitalists or is it the many producers' and consumers? Up to the present I have not the slightest hesitation in saying tho pow'ers that he have protected the few'. It is recognised and admitted by the leaders in polities that at the present time the Dominion is suffering from a. shortage of £20,000,006 to £30.000.000 in the value of its products. How' long is that to he allowed to continue? By taking steps to cut down wmges, provide unemployment dole, and other necessary expedients—that are necessary, I acknowledge, because of the conditions brought about by the cause—these are only palliative measures, and are not. dealing with tho root cause at all; and unless you realise wliat is the cause and remedy, it will go on and on, and matters will get worse and worse.”

MEAT COMMISSION - Continuing, Mr. Lysnar said he would also read Ihe following extract from the official record of his five and a-half days’ address to the Royal Commission (in '1925 regarding the sale of freovins' works to Messrs Vestv Bros:

“[ have said in (he country and to the meetings T have addressed, and T repeat it to the commission, that this fact Ims to he recognised. And unless it is recognised, the whole control of the sheep-farming industry as a. whole will he taken out of the hands of the people carrying it on ; and the whole body of producers will sink to no higher position than that of file shepherd? and tenderers of flocks and herds. And the whole effect of the policy of this country foi closer settlement, will he destroyed, and that policy, instead of promoting the growth pf a hardy, independent race, of free-holders and free men, will promote only the growth of a class subservient to, and dependentupon, European financial interests. “Holding these view's, and believing, as I do, that the first principle of the policy of this country should he to obtain and retain financial freedom, I regard with horror the attitude’ that has been taken up by the Minister of Agriculture, and the chairman of the Meat Board, in allowing these trusts not only to gain a hold in"’ in the country, but to so increase their holdings that their operations have become so extensive that already clear evidence has been given before this Commission that their methods' and competition are beginning to oust the farmers control. I have devoted my time and my efforts to this Commission not 'or my own ends, but to advance the principles which I consider vita o the progress and welfare of this country. I say that, wittingly or not the Minister and the chairman of the Meat Board have sunk the principle that should have guided them in preserving the interests of this country in' the manner they wore intended to- by the legislation which placed in them the power to saleguard the interests of producers. I say further, that none or tho excuses put forward .by them m a sufficient justification to excuse them in the eye of the country, or bcfoie this Commission, for what has been a dereliction of duty and departure from principle.’’ , „ “What I said then is true to-day commented Mr. Cysnai- at the conclusion of the reading ot the oxtracts. .