PRESENT-DAY PROBLEMS.

Hawera Star, Volume XLVI, 24 May 1927, Page 8

PRESENT-DAY PROBLEMS.

MR. POLSON’S ADDRESS

At the Grand Theatre last night, Mr W. J. Poison, Dominion president of the Farmers’ Union, delivered iaoi interesting address to a large audience on “Present Day . Problems.” tLs Worship the Mayor (Mr. E. A. Pacey) presided. Others on the platform were Messrs H. G. Dickie, M.P., Hon. O. J. Hawken, and members of the Ghambei of Commerce. Mr. Poison at the outset ot his address stressed the fact that, although lie was going to talk politics, he avus not connected with any party. A° Government was perfect, anti fie aa as «*oing to criticise the present party from the farmers’ point of vieu. There was no need far panic in connection with the present condition of the primary products; things had been worse. But neither was it any use adopting the tactics of the ostrich and ignoring the dangers. The people should get together. The townspeople knew that many farmers were having a hard struggle; they were not spending as much as usual, and this was due to the struggle to make the l farms pay. . By taking counsel together the position could be retrieved. . . In examining the position, the speaker said that 97 per cent, of the exports of the country came from the primary products of the land. If primary production was successful, everyone was prosperous; il; the primary product® failed, then everyone suffered. Last year the imports had exceeded the exports by £4,600,000. Ten millions sterling was the amount that the conn try was in arrears for a year. He hau been criticised by the Hon. W. Downie Stewart, and took the opportunity oi replying. The contention of the Minister of Finance that loan moneys were being brought in as goods did not affect the position. Comparing New Zealand to a farm, the products of which just balanced the outlay, the speaker said that if the owner wanted to. borrow lie did it in a similar manner to that adopted by the Government. Quoting figures, the speaker showed that the production of butter had not increased to any extent. Beef production had, as also had iamb production, been reduced greatly in the last six years. Mutton and wool figures were also affected—-primary production had not increased. The return to the gold standard must result in. ,the deflation of prices. He did not expect that in the next year or two prices would improve much'; in fact, farmers would be lucky to hold their own. The country was living at the rate of £10,000,0(J0_ more than its exports, and was borrowing at the iiate of £6,000,000 per year to keep up appearanees. In the last two years there had been a decrease of 9000 in the number ,of farm employees. Why was it that the farmer had to suffer in this way? It was simply because the unfortunate farmer could not pass on costs; he had to take the world’s parity. Unlike the town* dweller, lie had to' sell at what he could get, irrespective of what his goods cost to produce. There had been a loss of £8,000,000 m connection with the wool industry m twelve months, and it was time to take stock. Business men would immediately investigate the position if their affairs were going back to a similar degree. The people were drifting to' the towns. In fact, from 60 per cent, of the l population, the country people were now only 4.0 per cent. If the drift continued, it would be disastrous for the Dominion.

Land to-day was deflated to below its 1914 value, continued the speaker, who said that if a suit of clothes cost 70 per cent, to 80 per cent, above the 1914 value, surely it was not land inflation that was the trouble, but the decreased purchasing power of the sovereign. A Government commission had recently been engaged in considering a large block of sheep land. Their report showed that it had been decreased in value, and was worth less to-day than it was 21 years ago, when, it was in virgin bush. When abroad,, the speaker had discussed land values with farmers in Sweden and. Germany. To his surprise he had found that the virtues in those countries; despite the disadvantage's, to be faced, were higher than in New Zealand. There were only one or two ways in which matters could be righted. Economy was first needed. Quoting from statistics, the speaker showed hew the public .service cost had increased. “We must bring all these things down,” he said. Better finance was also necessary. For years the farmers bad been fighting: for agricultural banks, but financia interests had blocked the project. The Rt. Hon. J. G. Coates had promised that the Iturai l Credits report would go through this year/ and it was to bo honed that he would carry out his promise.. Agricultural banking was a system which flourished in practically every country but New Zealand. It stabilised the values and prevented speculation in land. Mr Poison said that if the bonds were put on the market he was sure that they would -be bought up. The scheme brought out by the Bank of New Zealand at the time the rural banking schemei was mooted the sneaker described as a red herring to. keep the farmers’ scheme off the statute books. Instancing America, the speaker related how. when the farmers in that countrv met a big slump, the Governmet had come to their aid, with the resui’t that the position was relieved. The Government should do more for the primary producers of this country, he continued.

Another thing, needed was fresh markets. This country was busy forciiv its' modnets 011 to the British nublir*. In the opinion of the speaker. Anst'-alin and »v Zealand .should lie nb’e to do a good trade with America—- • f thev nut ur> some sort of a> bargain. Thor should use the tariff to their own advantage. Too nmeh protection:, howe'-e'-. was detrimental. Tariffs should he the servants of the mihlie for the purpose of bargaiining. and not the people servants of 'the tariff. A I>elter land policy was also .'needed said Mr Poison, who related what was being done in Brazil. There peop'e were given land and food until they were able to bring it into production. A similar policy should he adopted here. There was plenty of second-class land in New Zealand which .should be given awav to bring it into production. Bach farm closing down meant a. larger burden on the others.

LABOUR AND THE PRODUCER

“Rood luck to labour.” said the speaker, who said that he was not against Labour. However, he thought there should he some equality of sacrifice. Labour costs were rising while prices were falling. Not only were the awards increasing wages, but they were also increasing the restrictions. The cost of living was l calculated in the most prosperous time of the Dominion. While paving for a great war. we were attempting to maintain the same standard. ‘‘Tt can’t be clone,” said the speaker. I Tt had been shown that unless-more than 1/6 per lb for butter and 14d for wool were obtained the industry could not make headwav. The worker had nothing to fear from a policy which would bring things back to normal,

but it was useless trying to continue as at present.

DAIRY CONTROL

Touching upon Dairy Conrtol, Mr. Poison mentioned that after visiting England, he had given his advice to the Government and to his fellow producers. He had told them what would happen, but had been laughed at. It was important to retain the goodwill of those who sold tlie New Zealand butter. The Danes were fixing prices, but nobody realised it. By working .quietly the farmers of New Zealand should be able to gain ground and evenutally reach such a positron. Practically everything bought in New Zealand was under control, but, people simply accepted the fact without realising the position. At this stage, the lecturer read a letter handed to him in Wanganui pointing out that practically everything exported from England was sold at a fixed price. He ivished to impress on the board the necessity for diplomacy ’(instead of the “thick axe” every time. In conclusion, Mr. Poison explained that farmers and toAA’nspeople stood or fell together and should work together for the common good.

At the conclusion of his address the speaker was accorded a hearty vote of thanks.

The Dominion Organiser of the Farmers’ Union (Mr. L. H. Alpine) briefly addressed the gathering on matters of interest to dairymen in general. The folloAving motions were then carried:—

“That this meeting urges upon the GoA'ernmcnt the need of drastic economy in public expenditure to enable taxation to be reduced in order that production may be stimulated and the producer encouraged to further efforts.”

/ “That the Government be urged to proceed with the necessary legislation to give full, effect to the Rural Credits Royal Ccunmission’s recommendations, and place same on the Statute Book next session so that better finance shall be a\ r ailable to farmers, and land values stabilised.”

“That this meeting demands some sense of security in regard* to labour, and while freely conceding that the worker is entitled to the highest reward he can obtain, declares that breaches of awards are a menace to production, and a clog upon progress and that it is the duty of the Government to abolish preference where such breaches occur.”

“That this important meeting declares that in the best interests of this Dominion’s trade, it is necessary that more markets be developed even if tariff bargains are required in order to obtain them.”