The Grey River Argus SATURDAY, August 14, 1937. COMPENSATED PRICES.

Grey River Argus, 14 August 1937, Page 8

The Grey River Argus SATURDAY, August 14, 1937. COMPENSATED PRICES.

If he is sure his case is all that he claims, there should be no need even to mention, let alone repudiate political motives so repeatedly as did Mr. J. H. Furniss yesterday in his local address on behalf of what is called the “compensated” price agitation. Sponsored by a Colonel S. J. E. Closey, this Movement may be an “offsider” for the Farmers’ Union, but it is entitled to examination. This is still a primary producing country, probably too much so, and exporters must be always considered in economic planning. The dairy producers are a very varied class, some mortgaged up to the hilt, others quite well off, and more now “rounding the corner. ” ’Whatever Mr. Furniss may say of the present Government’s policy, he cannot deny it has relieved the mortgagehold. Whatever he may say of the previous Government, he cannot deny it let that hold become a stranglehold. It appears, indeed, his movement is due to certain interests becoming emboldened by what the guaranteed price has done to demand a much larger dose of the same medicine. We do not for a moment imagine that the compensated price advocates reckon any Government would do’ away with the tariff. They rather count upon the guarantee being forced up by agitation. As a matter of obvious fact, the Primary Products Marketing Act provides for a price allowing the farmer to- meet all production costs and a living standard comparable with that of other sections of the community. Mr, Furniss deals preferably with what the position was before, rather than after the Act came in. He does not get down to tin tacks on the matter of production costs in any particular area, but arbitrarily asserts farmers generally need the guarantee of a boom price. What about farm workers? Mr. Furniss wants them to be deprived absolutely of any wage standard at all! Competitive rates, he demands, shall determine ’ their remuneration, and that means a competition in wage cutting. On top of that he would say the guarantee should be lifted to the dizzy limit. Why not allow that this is the first Government to regard the dairy farmer as entitled to security? Under the last Government, the Dominion’s currency was debased to suit the exporter, but now there are some who want it both ways. They would ask a payout of 200 s. per cwt. when butter touches 120 s. in London, but if it falls to 80s, the present guarantee does nicely. Contrary to previous declarations, it is . now said that to rid farmers of mortgages will not give relief. What, then, are the costs complained of? They evidently are in the estimation of the compensated price agitators comprised almost entirely in wages. If there is a host of workers without subsistence, it means bed rock prices. There is no need to recall the plight of everybody during the dole interlude', when the dairy farmers were as deeply in the soup as anybody else. A rush of labour for employment by farmers means low wages and, no doubt, lower costs; but there has been also such a rush of capital and people into dairy production that it could not but have ultimately a depressing effect too. Before Labour took over, many mortgagees were for evictions as soon as they might have a chance to replace mortgagors, their argument being that where replacement became feasible its justification would be that a better standard of farming would result. The present Government did not

stand for that idea, and its policy to-day see ( s dairy production' more than maintained, showing that the situation is not worsening, but improving. For one thing, all farmers are now treated fairly, and?the time was not long since when there was by no means a state of equality. It may be admitted that the best possible price should be guaranteed, because dairy produce bulks vary largely in our exports, but it would be shortsighted to demand so high a rate as to impose on the rest of the country a burden that could not be long borne. When the new price guarantee is announced it should be accepted, and by the great majority will be accepted, as the best possible, and a fair thing into the bargain.