AGRICULTURAL COUNCIL.

Hawera & Normanby Star, Volume XLII, Issue XLII, 19 July 1923, Page 6

AGRICULTURAL COUNCIL.

ANNUAL CONFERENCE. (BY TELEGRAPH PRESS ASSOCIATION.) WELLINGTON, July 18. The tenth annual conference of the Council of Agriculture was held yesterday. The retiring president (Mr. J. D. Hall) expressed appreciation of the generous benefaction of Sir Walter Buchanan in giving a chair of agriculture to Victoria University. In the coursei of his address, Mr. J. D. Hall (president) referred, to the cost of production. The statement in the Budget said that the past season had been an exceptionally good one for the primary producers, because prices and production had been maintained, and the quantity and value of our exports had been increased. This, no doubt, was correct, but no notice had been taken of the other side ©f the producers' account, which shows that the cost of production had also increased, so that the net result to the farmer ismuch the same. Dairy farms have inoreased their output for expprt of butter for the twelve months ending December 31, 1922, by 221,722 cwt, and butter for the five months ending May 31, 1923, by 160,521 cwt, as against the corresponding periods for the previous year. Cheese, on the other hand, has decreased involume^and value, but on the whole the result of the year's work on dairy farms, so far as output is concerned, is one which the dairy farmers may be proud of, and it is to be hoped that the value of their produce will be maintained. It is -desirable to emphasise the importance of developing an efficient system of herd testing, and that unceasing war should be waged on the scrub bull and robber cow, which are a most obnoxious pair and a great handicap to the industry. Nothing could have been more opportune for those who survived the disastrous effects of. the depression of 1920----21 than the improved prices for our wool for the last season, although the increase in the amount exported cannot be the result of an increased clip, seeing that the number of sheep had decreased. The substantial increase in ; values is a matter to be grateful for, and, as the prospects are still good, it is to be hoped wool-growers will strive to increase their flocks, improve tlw quality of. their clip, and co-operate ir the matter of transport and marketing their wool. They might also study tin question of converting it into "tops" ir New Zealand, and thus avoid paying freight on all the dirt and grease. In the export of lamb a substantia improvement is shown as to botl volume and value, and it is interesting to notice that farmers are now getting a larger proportion of London whole sale prices than in previous years Whether this is due to the existence o: the Meat Board, or to a general short age of lamb- of the class which we ex port, it has certainly been the cause o a substantial incr-eai-e in the returns t< iSew Zealand growers.

The prospects so far as the export of beef are concerned are not bright, but, on the ociier iiaud, they are not by any means hopeless. Special methods for freezing beer are being tried, and if satisfactory will enable our good beef to go to Eui-ch'c and compete favourably with that from Argentine. 'Ih© export of indifferent quality will hinder rather than help beei prouuceis. It is desirable to say a few words regarding farmers' finance generally, and in particular as to farmers' mortgages now current, many of which are subject to the nrotection of the moratorium. Of the '£240,000,000 of mortgages registered in New Zealand, it is roughly .estimated, that about £50,000,----000. is the face value of mortgages for which provision has to be matie at the end of next year, and it is believed that the greater part of this amount is lent by New Zealand investors, and very little comes from abroad. The problem is j. (1) To satisfy these investors that the security upon, which their money has been lent has not depreciated to such an extent as to justify withdrawals of these loans; and (2)" to obtain ' the reinstatement of these moneys on reasonable terras.

As to rate's of interest, it seenis as if the chairman and. ex-chairman of directors of the Bank of' New Zealand were doing their best to destroy the confidence of these investors by indulging in generalities as to New Zealand farm lands being overvalued. They are probably right as to some classes of land, which have been subject to overspeculation, but it is very unfair to the farming community generally and misleading to investors. It amouiits to this: The basis of business of New Zealand is production, distribution and- marketing of agricultural and pastoral commodities, and financial machinery has got to be designed and organised properly to accommodate this fundamental enterprise, and its aim should be to harmonise the system with the present process. Farmers want the help and sympathy of the banks in the matter of arranging their mortgages, and it seems to be a time when bankers, merchants, and chambers of commerce should join hands with the farers in the solution of their problems.

Failing any satisfactory arrangement with the present investors in farm mortgages, there appear to be three alternatives which might- be adopted to provide for these mortgages: (1) That the Government should extend, ths accommodation pl'ovkled~through the Advances to Sett.ers Department, and further, substantially increase the amounts of the loans: (2) the appointment of a board of valuers by the Government and the issue of Government debentures up to 60 per cent of the ascertained values of any farms, on the same terms as to interest and repayment as in loans by the Advances Department; (3) the formation of a farmers' land and mortgage association, which should arrange that its farmer members should assembletheir securities and jointly pledge their credit to a substantial extent lor the purpose of getting the investing public to buy the bonds of the association, and thereby provide funds to advance to its members, and that the State should to some extent guarantee such advances and assist in the initiation of the scheme.

j The question of agricultural education had received the attention of the executive during.. the past year, and opinion is general that something should, bo done to introduce a system •which will'give New Zealand farmers and their sons better opportunities for developing themselves and their farms. "I am glad,'' said the president, of the opportunity of expressing, on behalf |of fanners, their very keen appreciation and gratification to Sir Walter Buchanan for his gez-enous and thoughtful benefaction for the purpose of establishing a chair of agriculture for Victoria College. The fact that our urban population exceeds that of our country | districts is a matter for serious conI sideration. Life's prospects for our boys are so much in favour of the towns, both as to high schools and technical colleges, and also as to the amounts that ' can be earned under" award wages in the towns and by farm work in the country, that there is little wonder the drift to the towns is increas-ing year by year. As long as mechanics and artisans who are working under award wages can earn more than a farmer working on a- 300 acre farm of medium quality- land, there is i little hope of effecting any improve- j ment in this important matter. The < whole subject requires careful inquiry I and study by some committee of in-

vestigation, which should report not only as to existing conditions here, ) but- also as to the methods adopted in j other countries regarding rural life and i its development. Until we have a ! happy, enlightened and prosperous ', country people we shall have no enduring prosperity in New Zealand. On tho motion of Mr. D. M. McLean (Masterton) it was resolved: "Now that } the country is in a better- financial- posi. tion, the Government be urged to adopt a more progressive policy in regard to training future farmers'" In moving ' this he said that a visitor had stated that one could see a racecourse every fifty miles, but not a single agricult ural college in the North Island. ' iln the discussion which followed, '.' stress was laid on the need for progress in agricultural education, and a resolution on these lines is to be sent to the . Government. J Remits were carried empowering the executive to proceed with the forma--1 tion of a Royal Society, the first show to be held at Palmerston North and the second at Christchurch. Donations of £100 each were promised by Messrs R. I>. McLean and W. D. Hunt, in addition to a. similar sum already promised . by Sir Walter Buchanan. . k In regard to local body loans and debentures. the executive considered that ; the low taxation operating on such in- ' vestments diverted moneys which ordin- ' a-rily would lie lent on first mortgage ' on farm properties, and the fact that r interest on mortgage was taxed up to .' j a maximum of 7s 4d in the £ precluded ' farmers from obtaining the financial aid necessary to the development of the country. A remit was passed that the Government gives serious and practical con- * Rideration to a drastic cut in railway ] freights, as such would tend to reduce " the heavy lorry traffic which is doing so much more damage to the main ' roads. Sir James Wilson said they would be surprised at the amount of over- " loading, four-ton waggons carrying six- ~ ton loads, which did most damage to ' roads. } A protest was mad© against the heavy taxation which was crushing the primary industries. It_was also stated " that the published remarks of the pret sent and former chairman of the Bank of New Zealand that land in New Zea- £ land was over-valued was doing harm a to the Dominion in destroying public a confidence 1 y c a or 1 h or cr -f If 0