FARMERS’ UNION.

Hawera Star, Volume XLVIII, 28 June 1924, Page 3

FARMERS’ UNION.

SOUTH TARANAKI BRANCH. NOT DEAD YET. NEW EXECUTIVE ELECTED. ADDRESS BY MR. POLSON. The meeting called to decide whether the South Taranaki branch of the Farmers’ Union should elect a. president and executive for the coming year or disband altogether was held in the Oddfellows’ Hall, Ha wera, yesterday. There were about forty farmers present, Mr. A. R. B. Pierce presiding, and aider the Dominion president (Mr. Poison) had delivered an address, the meeting elected an executive and decided to carry on the branch. Ylr. Poison said he had read with some consternation the notice calling the meeting, which suggested a post sible disbandment of the Farmers’ Union in South Taranaki, and he could not help thinking that there must be something wrong somewhere when matters had come to that in such a rich district as this. Either there was something wrong with the Farmers’ Union or there was something wrong with the farmers, but he assured those present that there was nothing wrong with the Farmers’ Union. He had just returned from a tour of the South Island, and there he had had large attendances at all the meetings held in each little wayside place. What the Farmers’ Union had done in the last twenty years alone justified the farmers standing by it to a man. even if the Union had nothing constructive to put before them at the present time. However, this last was not the case, for the Union had at the present time a constructive programme—a constructive programme which was also a cooperative programme. The Union was anxious to achieve something similar to that which had been achieved by cooperative methods in other countries. There were four planks which the union was working on at present, the first three of, which were 'co-operative banking, co-operative shipping, and cooperative marketing. During the last session of Parliament a committee set up by the Government had been discussing shipping, but could not arrive at anything definite. He happened to meet the chairman of that committee, and so told him about the union’s shipping scheme. The chairman had not heard of it, but he was given a copy of it. The result was that during the last week of the session the committee recommended Parliament to adopt the scheme as proposed by the Farmers’ Union. Although they in Taranaki might not be aware of it, leading producers who were members of the Farmers’ Union met month by month in Wellington and threshed out questions which were of vital importance to the producers. The Farmers’ Union, in fact, existed to tackle these big questions.

The next important question was that of co-operative marketing, the advantages of which had been emphasised by the Meat Control Board, ivhioh ansaved the meat producers of the Dominion £1,000,000. He was also confident that the Dairy Control' Board would save the dairy producers a great deal of money.

There was a good deal of misconception concerning the agricultural hank which the Farmers’ Union proposed. He noticed that Mr. Hawken, at Eltham, had referred to a statement to the effect that an agricultural hank could find money for the farmers at per cent. Personally, he had never heard the story before, but, of course, he knew it was ridiculous. However, he thought he knew where the statement had come from. Recently a leading Danish gentleman of high standing had been visiting New Zealand, and he had stated when interviewed that the Danish farmer through his agrciultural banks had never paid more than 2>per cent, interest for his money. Continuing, Mr. Poison said that as he journeyed about the country he was usually asked three questions concerning the proposed agricultural bank. They were: (I) Is this a cranky notion of the Farmers’ Union? (2) If you established such a bank, where are you going to get the money? (3) Supposing that your hank is successful, how •is it going to be bettor than the State Advances Office ?

“Imagine,’’ said Mr Poison, “that New Zealand is a country possessing an agricultural bank. The system is to cut the country up into areas with a centre in each area. Say that Hawera is the agricultural hanking centre of this district. The success of these hanks is due to the system they have adopted of appointing their valuing officers, the committees consisting of outstanding farmers in each district. These committees value the land of applicants for loans from the hank, but they not only value the land, but they value the farmer, so that a good farmer would get a greater advancement than a poor one. The loans recommended are forwarded on to the Dominion centre' at Wellington, all the valuations having been made on the producing value ol the land, and nor on the selling value. At Wellington it is found that the loans recommended total t:2o0,00(), and so the head office issues a block of bonds for that amount of money, the bonds being sold wherever most suitable. Some people would here say, ‘1 knew there was a catch in it somewhere; how are you going to seel the bonds. It is one thing to issue them, but quite another thing to sell them.’ The bonds are so gilt-edged,” said AllPoison, ‘‘that trust funds are invested in them. The security is of _the best, and the financiers advance the money at the lowest rate of interest.” Tilt; speaker said that New Zealand was the only civilized country in the world winch did not possess an agricultural bank, or was about to possess one. England, America, all the Stales of Europe and the Latin Stales ui South America all possessed them, and he defied anyone to give him one instance of an agricultural bank being a failure. Less than one per cent, covered the working costs of the American agricultural banks, and with that one per cent, included, the New Zealand producer could get his money at oh per cent. He certainly could not get that unde rthe ordinary mortgage system prevailing to-day. Actually under the present system it cost the producer about 7 per cent, when the legal expenses, etc., were reckoned in. Also another point was that under the agricultural hanking system a person could pay off at any time part of his loan. The farmer's land would therefore become his bank. He would borrow lor improvements to his land, and as those improvements yielded their return his land would grow in strength behind him.

Mr Poison said that the New Zealand State Advances Department was a crude sort of agricultural bank. It could only lend money when it had it, and often when money was most wanted. it was not forthcoming. In conclusion, Mr Poison said that the whole keynote of the union’s work was co-oneiation. Seventy years ago Denmark was the poorest country on the face of the globe, hut she set about tiie establishment of co-operation, and to-dav she was the wealthiest country

on the face-of the globe. He was of opinion that Denmark owed her present position to her eo-operative movements and her agricultural, bank, which gave her money at 31 per cent. Co-operation was necessary to' give the producer sin adequate return for his produce. New Zealand producers to-day were not getting 50 per cent, of the wealth tfiey produced; and it was this fact which was driving people from the country into the towns. Because the middleman was getting more than the pro- 1 ducer in New South Wales, they were faced with the position that one city alone in that State contained more.--than half the whole population. Twenty-five years ago in It-ew Zealand the population was distributed 60 per cent, to the country and 40 per cent, to the towns, but to-day the position was reversed. Tlie Farmers' Union was worth support. Every other industry and profession was thoroughly organised, and if the Farmers’ Union was not successful, then the fault lay with the farmers themselves, who had not put their shoulders to the whe.el. (Applause). Mr A Haseltine then moved that the Farmers’ Union continue its organisation in South Taranaki. He thought that it would be a retrograde step to allow the South Taranaki branch to go.

Air E. J. Betts seconded. He said that he was not altogether in agreement with the notice calling the meeting. Air Buckeridge said that as the person responsible for the moving of the motion calling the meeting, and the notices which had been sent out, he had no apologies to offer. The position at the conference at Patea was that they had only got three men out of lo who were willing to take office, and those three only accepted under protest. Personally. after years of work, he was ashamed to state the number of nrtan-"ia-1 members of the Farmers’ Union in South Taranaki—they did not number one per cent, of the farming community. He was not sorry they had taken the course they had at Pateif. because it had brought about the visit of Mr Poison to the district, and after the address he had given he would leave it to those present whether they should not infuse new life into the union in South Taranaki. The following -executive was then elected: Afessrs A. Haseltino (Tok-iora). E. J. Betts (ManaiaL W. T. Seed (Matapu), H. Hodge (Alton), H. A. Sutherland (Alton), S. Huston (Kakaramea), W. ATeL’Dowic (Alatapu). W. Lyndon and J. C. Duff (Auroa), J. Stevenson (Kapunii. A. L. Camnliell (Eraser Koad), E. Burke (Otakoho), T. Winks (Ararata), J. Forbes (Normanhy'i. The matter of electing a president was left to the executive. Mr A. K. Fyson was appointed secretary. Mr A. _U. I>. Pief'e win appointed deloguic to the Dominion Coilerem e. Mr Johnston proposed a very hearty vote of thanks to Air Buckeridge for Ins past -efforts on behalf of the union. II the union had not been a success in South. Taranaki so far it was not due to any lack of effort on Air Buckeridge’s part. The motion was carried hv acclamation. The meeting then concluded with a hearty vote of thanks to Air Poison for his verv able address, and to the chair.