King Country Chronicle. Tuesday, December 9, 1930. THE PRIMARY PRODUCER.

King Country Chronicle, Volume XXIV, Issue 3240, 9 December 1930, Page 4

King Country Chronicle. Tuesday, December 9, 1930. THE PRIMARY PRODUCER.

It has been suggested that when dealing with the present economic conditions we have been advocating an all-round reduction in wages as the only method of bringing the country back to the road to prosperity. This is far from the truth. If the cost of production is to be lowered more than a reduction of wages is required and w r e are strongly against the workers being called upon to take a smaller return for their labour unless other sections are prepared to make some sacrifices to meet the existing conditions. The workers would be quite justified in combating any decrease in their earnings unless salaries were also treated in the same way, and there was a general movement to reduce the cost of production. There seems to be little doubt that the mortgagees of this country will be faced with the loss of several millions of pounds in the near future, and it would be infinitely better for them to face the position now. We have to face a lower plane of prices for all our primary products, which means that land values will have to come down. If the present land values and cost of production are maintained thousands of farmers throughout the Dominion will find it impossible to carry on. Large lending institutions and trustees could not possibly take over the properties that may fall into their hands. The position will have to be met by writing off a considerable portion of the mortgages and by reducing the interest rates on the remaining portion. There seems no other course open. Those properties carrying heavy mortgages will not be saleable at their present values, and in very few cases will the moi'tgagors be in a position to work the farms on which money has been loaned on high values. While the wages question has a bearing on the cost of living there are other ways by which the latter can be reduced. The lifting of the excessive duties on wheat, is one way by which the. cost of living can be reduced, and this would also stimulate the pig and poultry industries of the Dominion. If the wheat growers in this country cannot produce wheat economically on the world’s parity then they have no right to ask 95 per cent, of the people of New Zealand to bolster up their industry. The whole system of national and individual expenditure of this country has to be revised in order to cope with the lower prices for our exports. Provided this revision embodies all sections of the community, the present standard of living will not suffer, as the purchasing power of money will increase as prices come down. The standard of luxury, however, must be reduced, and many people will have to do without things which under more prosperous conditions they iconsid-t ered themselves entitled to.