FARMERS’ PLIGHT

Manawatu Standard, Volume LII, Issue 307, 25 November 1932, Page 7

FARMERS’ PLIGHT

FALL IN PRODUCE-VALUES. MEETING AT FEILDING. DEPUTATION TO GOVERNMENT URGED. Mr L. Hammond presided at a special meeting of the Wellington provincial central executive of the Farmers’ Union at Feilding, this morning, there being also present: —Messrs G. L. Marshall, A. Anion, J. G. Eliott, L. lUcljean, A. Howard, W. Li. Grice, J. B. Budding, F. Gash, Jb'itt, J. B. Bradley, ti. Vvatt, F. H. Whale and Burch. Apologies for absence were received from, a number of members. The chairman extended a welcome to Mr T’itt, the new organiser for the district from Palmerston North to New Plymouth, Mr Titt briefly replying. The chairman then announced that the meeting was a-,special one called at the request of Mr G. L. Marshall to discuss the position of the farming industry in New Zealand. The chairman referred also to the proposed rally of farmers as suggested by the Feilding Farmers’ Union. He considered it was highly, desirable to proceed with the suggestion. Addressing the meeting Mr Marshall said it was certain the farmers could delay action no »juger in meeting the crisis that had arrived, otherwise he was sure that both internal and external repudiation would arise. The speaker referred to the statement of Mr Forbes, Prime Minister, with reference to a special session in the autumn, but in the opinion of xUr Marshall this was too late as all the produce of the season would be sold. It was imperative that now waß the time to act. Continuing, the speaker said it would be agreed that unless a 20 per cent, rise in produce prices was brought about, there would be no chance of farmers making ends meet. Mr Marshall did not know whether a higher exchange rate, a system of bounty payments, or a reduction in interest rates would bring about the rise in prices that was required, but it was obvious that one or all were wanted. If the Farmers’ Union were going to prove its worth, now was the time to show it, and in this connection he expressed his dissatisfaction with the action of the Dominion executive of the union. The speaker failed to see that the executive had formulated anything of value to go to the Government with, or that the deliberations of the executive had been of any real value. The speaker then moved: “That this executive urge the headquarters of the Farmers’ Union to arrange for a deputation consisting of two members of each branch of the Farmers’ Union to meet the Prime Minister in order to press the absolute necessity of action being taken before the end of this session, whereby the position of the primary producer can be relieved. “We firmly believe that a reduction in interest rates would be the most businesslike method, but failing this a higher exchange rate or a bounty system is imperative. Unless one of these courses is instituted without delay, the country is faced with both internal and external repudiation.” SOLUTION OF DIFFICULTIES. Mr Marshall claimed that the suggestion of the Prime Minister to deter the session of Parliament until next showed that he (Mr Forbes) was like the rest of the country—could not see light ahead —and was putting off action in the hope that something would arise that would not make action necessary. Mr Logan McLean seconded the motion, stating that he was in entire sympathy, with Mr Marshall’s resolution, although as far as the remedies of the position wore concerned, he would rather attack the interest rates tooth and nail than ask for a bounty. Mr Cash agreed that something should be done, but he thought that a reduction in the interest rates was the most important of the lot. The chairman congratulated Mr Marshall on his resolution, pointing out that it had not asked for a higher pegged exchange or expressed anything that would intimidate the country members in the House who were fighting so hard for the primary producer. Mr Hammond considered that the executive should do all in its power to assist the country members in Parliament, either by amending the resolution or adopting it as it stood. Mr Burch could not agree with Mr McLean’s remarks regarding the bounty system. He thought the bounty offered a good solution of the farmers’ difficulties. Mr Dudding urged that the motion be left as it was. It showed the public that something was definitely called for or worse would follow. Mr Marshall was to be complimented on offering the suggestions he had. Mr Grice agreed with the last speaker, but was averse to the bounty system being asked for. It was obvious, Mr Grice thought, that the country could not possibly give farmers a subsidy on their exports at the present time. Mr Grice was sure that the farmer members in the House would get the support of the Labour Party if they pressed for a reduction m interest rates. n . The chairman said Mr .Grice had touched a vital point in his remarks regarding interest charges. If there was no better rate offering than even St per cent, the public would still invest as nothing better would be available. Mr Hammond went on to defend the action taken by the executive of the Farmers’ Union, and also the steps taken by Mr W. J. Poison MJ*., in the House, stating that both had done good work in the interests of the urged that the resolution ask specifically for a higher rate of exchange. It would be agreed that this was interfering artificially with the natural law of supply and demand but the position of the primary producer at present was such that the most diastic remedies were called for. There was no doubt, the speaker said that both a higher exchange rate and a Reduction in interest rates would solve tho farmers* difficulties . , , Mr McLean pointed out that it had been the union’s policy to press for an unrestricted exchange, and to alter t - and wanted to know whether this Act was nothing else but a deliberate inter fcrence with existing contracts. last shibboleths and ideas, Mr Eliott on, had obviously to be dro ß ped £ dealing with a crisis such as the pre--7n AMENDMENT WITHDRAWN. A general discussion on various aspects of the country’s difficulties fol Fowed the pros and eons of a pegged exchange, reduction in interest rates, and an increase in production as the

solution of the trouble being freely ventilated.

Mr Marshall said the whole object of his resolution was to get a strong body of farmers to go to the support of the country members of the House in their endeavours to get something done. The speaker did not want to emphasise any particular solution of the trouble, but he would like the three suggestions he had made to go forward and let it be decided in Wellington which would be acted upon. Probably a little of each would be granted, but the crux of the position was that the farmers required a 20 per cent. increase in their income at once. Mr Eliott moved an amendment to the effect that both the reduction in interest and a higher exchange rate be specifically asked for. He pointed out that his amendment differed from Mr Marshall’s resolution to the extent that tile resolution was permissive while the amendment was mandatory. Mr Eliott said that he was like many others — getting tired of the frequently reiterated statement of Mr Forbes that he and his Government were fully aware of the precarious position of the primary producer, and that something should bo done. Having said that, Mr Ehott went on, Mr Forbes buried his head in the sand again. (Laughter.) The chairman: That’s quite right. The difference between the resolution and Mr Eliott’s amendment, the chairman explained, was that Mr Marshall’s ideas laid down no specific rule, but offered three suggestions towards the 20 per cent, rise in income that was required, whilst Mr Eliott directly asked for two things as the solution of the trouble.

In reply to the discussion on his resolution, Mr Marshall emphasised that investors were asking more for their money than the money was producing, and his definite object was to tell them that the country . could not get along unless a 20 per cent, rise in income was forthcoming. Mr 'Eliott said it was evident that diverse views were held on the questions that had been discussed, and rather than give the impression that there was any split in the union, he would withdraw his amendment.

The motion was then put to the meeting and carried. The text will be forwarded to Dominion headquarters immediately. The executive then went on to deal with another matter brought forward by Mr Marshall in regard to the disposal of surplus production.