To Save the Fanmer

Manawatu Times, Volume LVI, Issue 7103, 11 March 1933, Page 10

To Save the Fanmer

ABSORBING THE UNEMPLOYED,

A scheme for tho rehabilitation of the fanning industry, including tfie absorption of a number of the unemployed in agricultural pursuits, has been propounded by Mr J. B. Hine, a former M.P. for Stratford and Minister of Internal Affairs in the Massey Cabinet. The basis of tho scheme is a moratorium and export bounty, and compulsory reduction of interest to a fixed minimum. "One of the chief causes of the difficulties in which New Zealand finds hersolf at the present time is the parlous condition of the primary industry,” says Mr Hine. "New Zealand is a primary producing country, and considering that the greater part of oifr national wealth comes from primary production it is obvious that to bo successful and permanent, any steps taken in tho direction of bringing about recovery must begin at the base. "Farming to-day is not a payable business and when the country’s chief industry is not paying difficulties must ensue for the rest of the community as well as thoso engaged in that particular industry. There is no need to labour the point—the resultant position is obvious. The very high prices obtaining a few years ago have gone, and their return is not expected, at least not in the time of the present generation.

"The plight of the majority of our farmers is most serious. At present many farmers are finding it almost impossible to remain on their holdings, and if things aro allowed to drift, the position, now almost desperate in many cases, will reach breaking point from which recovery will bo impossible, and the already largo army of unemployed will be intensified, and starvation will bo the lot of thousands.

With the funds now at its disposal the Government cannot now deal with tho thousands of unfortunate people who are out of work and if that number should grow to any extent it will be quite impossible to cope with it. People simply- cannot find the money to pay- extra in the way- of unemployment, low.

"The only way Lack is to get as many men as possible back into their usual occupations and hope in that direction can only- come by way of tho primary- industries. The first thing to bo done is to make it possible for the farmer to remain on his land. Interest reduction is helpful, but is not sufficient. The chief trouble is the high price of the land. "The longer the day of action is put off, tho more difficult it will be to keep the farmers on tho land, so why not act at once, by declaring a general moratorium, and at the same time fix the maximum rate of interest' on land and house security at 5 per cent., and upon chattels security at 7 per cent. Facilities for Agreement.

“At the time of declaring the general moratorium, it would assist with the speedy lifting of the moratorium by giving facilities to the interested parties to come to an agreement regarding the capital fund and rate of interest, etc., upon such agreement being filed in the Supreme Court, the property affected to be immediately freed of tho moratorium. Under this method it is likely that 50 per cent, would be arranged for in the firt three months, and before 12 months had elapsed, it is probable that the moratorium, could be done away with. Possibly a small percentage would require a little judicial assistance before settlement was effected. The price of land must come down eventually, so why delay the making of the very necessary adjustment. “Assuming tho foregoing suggestions are successfully carried out, the primary producers will have a good fighting chance of recovery, and then with the exchange given free play, tho Goovernment should consider the advisability of giving a bounty to the farmers in order to overcome the unemployment difficulty.

“The suggestion here put forward is that a bounty of 20 per cent, on export vaules be arranged for by the issue of Treasury notes similar to tho “John Bradbury” that the British Government utilised during the late war, say, for a currency of five years. In return for this assistance, every recipient would undertake to find work for 12 months for one unemployed man for every £IOO received by way of

bounty. By calculating the bounty at 20 per cent on export values, a sum of between five and six millions would be distributed, and oil the basis of one unemployed man to £IOO, some 50,000 or 60,000 men would be absorbed at a reasonable wage and good living conditions.’’

Mr Hinc also drew attention to the many possibilities that would be offering to the unemployed under such a plan. It would not necessarily mean that everyono unemployed would have to dig or delve, he says, but taken in the right spirit by the farmers, especially by those w r ho arc in good or fair circumstances, it could lead to the restoration of many into the avenues of occupation they previously enjoyed.