RESERVE BANK

Grey River Argus, 20 July 1945, Page 5

RESERVE BANK

FARMERS’ UNION CRITICISM OBJECTION TO WAGE INCREASES. WELLINGTON, July 19. The N.Z. Farmers’ Union conference adopted' a remit as follows: — “That the Government’s attention be drawn to inflation caused by use of credits created through the Reserve Bank.” Another remit was adopted as follows: “That the conference views with alarm a departure from stabilisation instanced by wage increases without any corresponding and immediate increase in monetary returns to primary’ producers, and’ urges that steps be taken forthwith to increase meat prices and other produce prices to counteract those increased costs.” The remit pointed out that, the Government could not expect maximum production unless primary producers were assured of reasonable returns. TALK OF DIRECT ACTIONF.A. WELLINGTON, July 19 At the annual conference of the New Zealand Farmers’ Union today. Mr. B. S. Williams (Havelock North) submitted a motion in opposition to the Government’s proposal to purchase the private shares in the Bank of New Zealand, on the ground that it had not obtained a mandate for doing so, The motion was carried unanimously. Mr. R. O. Montgomerie (Wanganui) said they had to take a' stand. He was adverse to direct action, but if they were fighting for a high principle they should go the whole way. If the Government took over the private shares of the bank, they would be a long way on the' road to socialism. Mr. W. W. Mulholland (president), said he had informed those concerned that he did not think the Union would take part in the big deputation of businessmen to Parliament, but it might take similar, action on its own account. Mr. S. Hannon (Fielding) said his district had sent him to the conference to ask for leadership. They would be behind any action the conference recommended. They wanted some direction as to what to do, and were not getting it. The feeling was not confined to his district only. He wanted to take back some assurance. If they were only to sit down and do nothing all was lost. Mr. R. G, Buckleton (Mahara) suggested that the conference stand adjourned to ascertain what action the Government would take regarding the banking legislation, the census, the country quota and stabilisation. This would enable the organisation of direct action to combat the Government’s intentions, which were a direct attack on the farming community and the foundations of freedom and democracy.Mr. R. W. Dunning said a committee on direct action was set up at the 1944 conference, but nothing had been heard of it.

Mr. J'. I-i. Furniss (Auckland) said that farmers would be unwise to rise in simulation of wrath on this issue. They had in the past. surrendered to exproprietory acts, the effect of which on farmers were greater than this one might be. What support had they received from businessmen in years gone by? He did not approve of taking over the Bank of New Zealand, but for years they had allowed unjust acts to affect them, and did nothing but pass motions. They would be called on at no distant date to conserve all their energy to defend their own interests. ■ They must not dissipate their spiritual and material resources on issues that did not vitally concern them.. They should concentrate on such issues as preventirfg the nationalisation of their produce, the country quota; and the unbearable burden of hospital taxation. Mr. A. E. Robinson (Auckland) said that when they fought for agricultural banking the Bank of New .Zealand was their biggest enemy. When they got intermediate credit, the bank howled for a counterpart, and got it, using the funds in part to finance a film company in Christchurch and a theatre in Auckland. It was decided to set up a committee on the bank question.