WELLINGTON NEWS

Hokitika Guardian, 17 July 1931, Page 2

WELLINGTON NEWS

DEBTS', TARIFFS-AND BUTTER

(Special Correspondent). WELLINGTON, July . 14. Mr W. Good fellow,- who may b© said to be one of the great props of the dairy industry, has returned from an extensive tour abroad, and at Palmerston '(North last week he gave” an interested audience a comprehensive review of dairying in other lands. His remarks were of sufficient importance to warrant being printed in . phdmphlet form and distributed -among dairy farmers. iMr Goodfellow did hot coniine his j remarks to dairying although he treated the subject exhaustively, It is obvious, that dairy production and marketing must undergo a change. “'So far as New Zealand is concerned we have to ; recognise that our dairy produce prices were down permanently,” stated ’Mr Goodfellow, and there can be no doubt about that- point. Inflated prices for all commodities had' vanished not to return perhaps for a generation. There will be marked fluctuations but we will not see the high prices of 1923-29. (Manufactured goods are relatively higher than farm products but they would have to come down. V Since the current low prices are likely to rule for a vary long time there is pressing need for ua to adjust costs, or, as Mr Goodfellow put it “This country had to cut its expenses down right and left. It was absolutely imperative to • stop borrowing 'and to liv« within our means, ’’ The job he , thought *■ difficult one, but really it is not so as w* can see by Australia. The Commonwealth would like to borrow several millions, but there is no one willing to lend, and so Australia is being forced to cease borrowing and try and live within its means. Both here and in Australia the expense of 'Government -is excessive because Government? will not keep to their proper functions of maintaining law 1 ; and order and security. but will insist upon entering into trading enterprises and unduly restricting the liberty of the subject'. State railways, State coalmines,- -'State-mort-gage financing and State housing are all costly excresencies in the government of the country and the people 'should have their liberty' restored to them by the abolition of the compulsory arbitration system. The cost of. Government is excessive, there are too many Cabinet Ministers, etc. . But th's is a political matter and no doubt'will be dealt with by politicians, actual' and potential. .

Mr Goodfellow holds the opinion that in about five years time. Great Britain would be going ahead rapidly on ' the road to prosperity. If Britain is pros-, , perous then New Zealand will be prosperous because Great Britain is our best customer. The present Socialist Government is expected. to continue in ' office, for a year or .two during- which period Ungland will continue to be a free trade, country and the '^lumpingground for the surplus products of other countries to the detriment of her vjrorkiiftg; class. Within the past three or four, weeks world- developments' have brought new problems to the frost, or rather > m consideration of Old problems, President (Hoover’s moratorium plan, has raised the question of war debts, which- are now being surveyed from. the point of view of -world economics and trade. Originally it was regarded a$ merely a mutter, between debtor and creditor, The moratorium does not solve the problem for (America, if' 1 solves-nothing. If'payments, are to be resumed twelve month? . hence the position will be -just: as. difficult asit is now, if not 'more so, ; Tariffs too are receiving more attention and instead

of free trade the policy,of the future will be fair trade between the countries. / Tariff reduction and tho cancellation of war debts, will 1 be the outstand ng Questions of the next Presidential election in America, and an election is due year. The Democrats desire a reduction and in this they have, the support of leading bankers, financiers and business men throughout the States, and the same can be said of the cancellation of war debts. Reducing the tariff will be a very difficult problem, but scaling down or cancelling th© war debts is likely to be generally supported. II lAmerica cancels the War debts she is -welcome to retain her high tariff. She jean be met with counter high tariffs.: • .