FARMERS' PROBLEMS

Hawera Star, Volume XLVII, 17 December 1927, Page 6

FARMERS' PROBLEMS

STATE CONSIDERATION.

REPLY TO CRITICISM. HON. O. J. HAWKEN’S ADDRESS. Bioblems affecting the farming community and a brief review of recent consideration given such questions by the Government with particular reference to finance proposals figured among subjects treated in an address given in tb© Eltham Town Hall last evening by the Minister of Agriculture, the Hon. 0. J. Hawken, who also took the opportunity to refute certain certain suggestions raised by the Dominion President of the New Zealand banners’ Union (Mr W. J. Poison) during the course of the latter’s address at Eltham on Monday evening.

The Mayor of Eltham (Mr Ifa. J. Bridger). who presided, said that the people of Eltham were pleased' to welcome the Minister to the district. He was sure that Mr Hawken would tell those present much of interest concerning the legislation of the past session. In his introductory remarks, Mr Hawken expressed his pleasure in being permitted to be back at Eltham for the purpose of giving an address on questions of the day. Since his last- address he had been appointed to the Ministry and had been afforded experience which enabled him to speak authoritatively on the matters to be dealt with during the evening. Unfortunately the session had been so strenuous that he had been unable to leave Wellington to pay extended visits to the electorate, Saturdays and Mondays being fully taken up with Cabinet business. During a period of four months he had been unable to leave the capital for a single day, and though he still took the greatest interest in the affairs of his own electorate, he hqd been unable to visit. He hoped that the present meeting would be the forerunner of similar gatherings of an informal nature, and though it was neeessary tbat he should proceed to- Wellington on Tuesday, he hoped tQ' he back in Eltham on Friday or Saturday for a visit of two or three weeks, during which he would endeavour to travel throughout the electorate. Referring to the alteration of the boundaries of the electorate, Mr Haw-ken-expressed regret that it had meant the loss of a certain area and that for the purposes of the electorate he would Itave to part with many esteemed friends who were resident in the portion which had been taken from the former district. ■ STRENUOUS SESSION. “As you all know,” he continued, “the session has been most strenuous. In times of such difficulty as have recently been experienced a great many adjustments have to be made and it is difficult to so arrange them that pressure will not be made unjustly on any particular section of the people. While the Government did not pass any particularly striking legislation an enormous amount of work was entailed. In agricultural affairs alone no less than 13 Bills were passed and this is more than has been dealt with at any previous corresponding period. “I know that a great many people think that the Government has a great deal to do with the visitation of periods of depression or prosperity,” continued the Minister. The real cause of such conditions was. however, to- be found in the production of the country and the relation of exports to imports. A slump had been experienced in the year 1921-22, the reason being the excess of imports as compared with exports. During the last few years the people of the Dominion had imported a great .amount of goods which might be regarded as luxuries and when prices overseas for our products fell the shortage of money became acute. A recovery could be looked for, however, as the exports wore exceeding the imports and in the present year the former should be in advance by about six or seven millions sterling. CAUSE OF DEPRESSION. The balance of trade as previously indicated was the main reason for the period o-f depression and it had nothing to do with the Government which could not control private expenditure and could not control prices in other countries, though the people of the country themselves could influence the volume of imports by spending less in products from overseas. Unfortunately this factor had not been appreciated generaly until it was too late to- avoid the slump.

As the Minister of Agriculture, Mr Hawken said he wished to deal with farmers’ problems particularly in view of the address which had been given at Eltham earlier in the week by the Dominion president of the New Zealand Farra ers ’ Union.

“I do not agree with the attitude taken by Mr Poison and it is difficult to understand his apparent ignorance of certain facts,” said Mr Hawken. The speaker had had ocacsion to' contradict certain statements of the Farmers’ Union organiser and he was pleased that at Eltham on Tuesday the president of the union bad admitted the former had made a mistake, but similar statements had been made some time previously and had been reported in the Auckland papers. Their inference was that the Government was not in sympathy with the farmer and was trying to “beat” him.

A leaflet issued by the organiser of the union asking farmers to attend the Kith am meeting had said “Don’t fail to attend Mr Poison’s meeting and hear how our Rural Credits Bill has been eidetracked and its usefulness ruined.” This statement might be taken as a direct challenge of the Government’s attitude towards the farmers with reference to the rural credits scheme.

STATEMENT DENTED. Some time ago the statement had been made that the Government could have obtained a loan of £5,000,000 at 4 per cent for the use of settlors, “1 say flatly there is not a word of truth in the statement,” said the. Minister. “The British Government itself could not borrow money at that rate of interest at that time. The New Zealand Government had to pay a half per cent. jno.ro and it is not reasonable to suggest that any body of farmers eorrl-d obtain money on terms not available to the Government of the country. “We wore also told that the Danish farmers were able, to borrow under their agricultural banking system at 4( percent. That statement is only a half truth, for while they could borrow at that price, they received only £BO out of ©very £10(3 borrowed. Therefore they were actually paying o-J per cent.” Refuting the .statements made by Mi Poison to the effect that production in the Dominion had fallen off, the Minister referred to the. production of butterfat which, he said, had been more than doubled since 1920. “Surely there

is nothing in that to whine about,” he continued. “It is a matter for very great congratulation and the dairy fanner in New Zealand has done wonders.” Many had thought that shortly aft'er the war bhety would receive 2s per lb, and when the price fell they wore in the air, but in view of the huge increase in production there was reason to be proud of the dairymen of the Dominion. He was pleased that the Taranaki district had done its share and he saw no reason for pessimism or to think that the dairy farmer was not doing his work. Not only had the butterfat increased in volume but, contrary to the usual opinion, the department returns showed that the production per cow had risen. In 1920 this had been J49.81b of buterfat and last season it had been 199.6. The Danish production was about 2401 b per cow, and he believed the Dominion could eventually surpass Denmark in this respect. IMPROVED SHEEP FARMING.

“Mr. Poison must have known the figures were incorrect,” continued the Minister in referring to the former’s declaration concerning the decline in wool production in New Zealand in 1923 as compared with last season. Actually the sheep of the Dominion had increased in three years by about 2.000,00., It was true that as compared with 19i9 the numbers were now slightly lower, but the breeding flocks were now augmented by 1,000,000 more ewes, and in changing over from mutton to lamb the farms had shown their ability, as the value of the former was od a lb as compared with 9d for the latter. Since 1920 the export of lamb bad continuously gone, up, while the export of mutton had fallen slightly, thus showing that the farmer was producing the best paying article. It appeared that sheepfarming must now be becoming much more profitable than was the case a few years back. While, as compared'with the maximum reached in 1918, the number of sheep had gradually fallen to 1922, it had mounted steadily since the latter season, and this year the flocks numbered 746,000 more than the previous one. In the three main export items, butter-fat, -lamb and wool, an increase had been shown, and so far as the current season was concerned there was every reason to be cheerful. Up to the present dairy produce had. been securing fairly good prices, and if the market continued factories should be able to make a good pav-out. For tlie first four months. of the season the Dominion production of dairy produce had increased by 17 per cent, and in Taranaki a rise of 9 per cent had been shown, as compared with the previous season.

Further, it could be safely said that wool 'prices had advanced by about 2d per lb, this being significant, as an increase of Id per lb either in wool or butter-fat meant approximately £1,000,000 to the Dominion. The beef markets were recovering, and there was every indication that sound- prices would he realised. This was very encouraging in view of the poor values ruling in the last five years, and which had probably had a greater effect than any other cause on the conditions of people of the hack oountrv areas.

Canaria was 22 per cent short of the previous season in cheese production and 95 per cent short in butter, while up to last month Denmark was 46 per •rent short of its former exports. These factors indicated that prices to he received from now on should he. reasonably good. RURAL CREDITS.. Dealing with the special legislation passed by the Government to help farmers financially, the Minister -said that in order to obtain first-hand information concerning the effects of measures’adopted in other parts of the world, Messrs Poison (president of the Farmers’ Union) and Cox (of the Associated .Banks), together with Colonel Essen (formerly the head of’ the Treasury), had been sent abroad to make investigations. He regretted that Mr. Cox had died since his return. The members of the commission had agreed, in the light of their experience abroad, that the advances to settlers scheme in operation in New Zealand was superior to anything of a similar nature in the world. As the Government had found great difficulty in borrowing anything like the amount which the Advances to Settlers Department could lend, it had been, willing to entertain a system which would enable the farmer to borrow money on his own account, and in accordance with the recommendations of the commission it had, with certain altera--tions, brought down the Rural Advances Act of 1926, providing for long term mortgages, and this session had passed the Rural Intermediate Credits Hill. Mr. Poison had declared that the measures were not as the commisi sion wished them to he, but the ! speaker knew that .Colonel Essen thought the measures adopted were superior to the original recommendations. Criticism had been levelled to the effect that borrowers under the Rural Advances Act which had been in operation since the session before last were unable to get money on account of valuations being too low, but it was essential that in a scheme of this nature the confidence of the lenders should be kept, and the Government or the lending board had no intention of interfering with the Valuation Department. If such action were taken it would at once destroy the sense of . security of the people who actually found the money. Under the Act many settlers had already received assistance, some £479,000 having been advanced, while a further £421,000 had been authorised. The Treasury had found the money in the first instance, hut the bonds were being disposed of in London on terms which would make the interest reasonable. If the bonds went off as had been indicated. money for mortgages would he procured for advances to settlers in a way never done before.

SHORT TERM ADVANCES. Under the intermediate or short term credit scheme adopted this year, settlers could borrow up to £IOOO for five \ears. In this connection the commission had recommended that the farmers should join in associations of 30 and guarantee the advances to the extent of ten per cent. The committee appointed by the. House had gone very fully into this aspect, and eventually the Government had come to the conclusion that many (settlers who might be of an independent temperament would not join together in the manner .suggested. ' Consequently* it bad been provided that a settler who did not wish to operate through the associations could borrow if he secured the necessary backing. Such a provision was a very tiseful addition to the Bill, and would, for instance, meet the case of the farmer who wished to give assistance in placing one of liis family on the land. Under the associations, the number of which had been reduced to 20. the borrower could obtain 80 per cent, of security on stock, equity in land, buildings, improvements. etc., the associations actually finding os per cent, and guaranteeing ten per cent. Similarly witli the backer 80 per cent, of security could

he borrowed. In order to float the scheme the Government had provided £400,000. The Minister thought that no other country had offered such liberal terms to the farmer. Whereas under the New Zealand scheme 80 per cent, of the value of the security could bo obtained, in other countries the figure was 50 per cent. only. “The Government has stressed every resource in order to help the farming community in New Zealand, and when the farmers understand it more fully they will appreciate what the Government has done to help them in their difficulties,” said the Minister. It was hoped that the intermediate credit scheme would he in operation early next year. He took great exception to the president and organiser of the Farmers’ Union —a body for which he had every respect—“throwing cold water or wet blanketing” such a splendid scheme as he believed the rural credits measure to be. Mr. Poison had suggested that the part oi the short credit Bill added by the Government would not foster co-opera-tion, but in introducing it the Government was endeavouring to do what was best to relieve the farmers as quickly as possible. ARBITRATION ACT AMENDMEM “A matter which has been very much discussed is the amendments to the Arbitration Act which the Government brought down this session,” said Mr Hawken, who explained that one feature of the legislation suggested had been that where possible the fanning community should be exempted from the provisions of the Act. The Bill had been freely discussed, and the Government Iliad eventually passed short legislation and had declared its intention to oall a conference of all parties concerned during the recess. This Was ai most important matter, said the Minister, for the imports to die country were at present too great, and it wias necessary to know why a considerable proportion of the goods could not be manufactured in New Zealand. it had been said that production was not nearly as great as was the case m other countries, and the solution suggested tor tins had. been the payment for work by results. The argument had been raised that men produced more under tins system, a,n<l in the United (States of America, it had been declared that this was most apparent m iarming pursuits. The Minis ter instanced the case of the shearing employees who had, when une system had been introduced m New Zealand received 1/s Od per 100 sheep shorn and who now received 2<s 6u. it had been found, that since the adoption of piece work the men had clone double’ tne amount of work, in spite ox tne contention that the employees nouicl he ioroed to work at a reduced race, it nad generally been learned that tne tanners were prepared tb pay goon wages where the employees endeavoured to perform their work expeditious iy. In Canterbury where the threshing mill employees worked under an aw aid wage per hour, the ianners. had expressed themselves as disgusted with the. results and had, in an endeavour to free themselves from the award, purchased their own threshing plants m quite a number qf cases.

PRODUCTION MUST INCREASE. The Government had decided that a conierence should be held tQ' thoroughiy examine the possibilities of the practical application of tlie system of payment by results. There was a widespread 'opinion that the industrial unions had taken advantage of the present awards and that production had been lessened as a result. It had been said that the bricklayers in the Unite. States under the piece-work system performed double the amount of work than was done by the New Zealand workers in a given time, and if tints were found to be so, there was a prospect that the adoption of the system in this country would prove of great value.

Tbe Minister said lie did not believe that the farmers would object to’ the adoption of the piece-work system. Ii New Zealand was to bo a great manutaccuring country, and tho employees wore to be paid high wages they must produce at a rate that would allow the goods to be produced sufficiently cheaply to allow them to compete’ with, imports from foreign countries. In the towns it was said that protection should be given to the New Zealand secondary industries, but the Government was ni the opinion that these industries sluiuld prove that they were able to produce sufficiently to meet a great proportion of tho needs. Australia had 101 l owed the system of giving protection to industries of the country, but the speaker did not consider that this could be continued lqr long. Mr Hawken said he believed that the men could do more than was dene at present and that the application of the suggested system of payment by results would have tliis effect. The Minister referred to the fact that the duty on certain farming machinery had been increased at the recent alteration of the tariff. He said this had been done by agreement in the' hope ot encouraging New Zealand manufacturers. He said that as the population grew it was necessary to be in a position to manufacture goods within the country and although paying high wages, to he able to' produce at such a cost that with, a small amount of protection riie New Zealand manufacturers could compete with the other- countries, if this could not be done, it was difficult to' know how to dispose o-f the surplus population. Such a country as New Zealand should be in a position to take ia large number of immigrants each year, and the development of secondary industries was the only way of disposing of surplus population..

THE LICENSING CONTROVERSY Dealing with the licensing controversy during the past session, Mr Hawken said that lie had abided by the pledges lie bad made prior to the last election. An extraordinary position had arisen in the House during the debate on the Dice using Bill as neither party had been willing to give way. The supporters of prohibition had desired a bare majority, but the speaker —and with him the Prime Minister—bad believed that in such an issue a clear majority should be obtained in order that no. one could cavil at the result of the poll. It was not considered necessary that a large majority should be obtained, but it was realised that were prohibition carried by a lew votes this would lead to a tremendous dispute. There should be a loaded majority—not necessarily in numbers—-to show definitely the wishes of the majority of the people. Both from a Government point of view and that of the administration of the law this was essential, and the speaker believed that a number of ardent prohibition supporters agreed with this view. In conclusion, the Minister indicated that lie hoped to address a lurther meeting at no great future date, when lie would deal with further legislation of tlie past session, including a number of agricultural matters, the petrol tax and the Government’s highway, policy. Mr. Hawken said he firmly believed that the Government had done its best to straighten out the various complications that had arisen.

Answering questions raised by Air J. Walsli, the Minister said he believed the country had lost little if anything at all through the actions of the Dairy Control Board.

“I voted against tho bare majority/' said the Minister when Air Walsh asked why Mr Hawken had voted the otherway on the licensing issue. In moving a vote of thanks to the Minister, Air Jacob Alarx, gave the opinion that the former had given a, very satisfactory answer to suggestions raised by tlie president of the Farmers’ Union in lids address on Aionday. The motion was seconded by Mr A. Al.cWilliarn, who paid tribute to tho integrity of the Minister. The motion was carried by acclamation and on the motion of the Minus ter, a vote of appreciation to the chairman concluded the meeting.