“OUT OF NOTHING, COMES NOTHING!”

Manawatu Times, Volume 64, Issue 109, 11 May 1939, Page 3

“OUT OF NOTHING, COMES NOTHING!”

Mayor of Feilding Greets Farmers “ WHEELBARROW ECONOMICS’ ’ MAY BE BEST “My economics may be of the wheelbarrow variety while legislators are moving about on bull-dozers, ’’ said the Mayor of Feilding, Mr. T. L. .Seddon, in the course of his remarks when welcom-' ing the speakers to Feilding at th# gathering of farmers yesterday afternoon. The remarks created no little amusement among the large gathering—one of the largest of farmers seen in Feilding. Mr. Seddon went on to say that he had followed with interest the reports of the several meetings of farmers and had endeavoured to understand their problems. It was sometimes an advantage to move slowly and to take significance of each more. “ Whatever may be the Utopian ideas of our legislators there are, I think, three fundamental factors which must bo taken into consideration in any economic planning for Now Zealand. First, New Zealand is almost entirely dependent at the present time on the products derived from two animals, tho cow and the sheep. Secondly, we have only one main market, which is 12,000 miles away. Thirdly, we have a population of about one and a-half millions. “Whether we like it or not we are dependent in tho long run on the prices we get for our produce on our overseas market. We can bolster them temporarily by guarantee or by increasing the exchange rate or by a combination of both. You can, however, only guarantee prices locally. You cannot control tho demand for produce or say what it shall bring on the Home market. But what is the outcome of it all? Simply this, that the Government is hopeful of balancing its budget by taxing an artificial prosperity and by utilising the surpluses in years which produce prices greater than the guaranteed prices. While you and I have to balance our budget or face our creditors the Government can stave it off, but no Government can escape »ne necessity of ultimately balancing its budget. “Anything in the way of a bounty over and above world prices must be borne by the people of this country and it seems to me elementary economics that such a population as I have mentioned cannot carry for long any great excess of cost over and above world prices. It is possible to some extent to guarantee prices to one industry at the expense of other industries or to one section of the community at the expense of the rest of the community but if you are going to have butter, meat and wool guaranteed who is going to carry the load? “We lawyers have a maxim ‘ex nihil, nihilo fit, ’ which being interpreted means ‘out of nothing, nothing comes.’ It may well be applied with profit by those who guide the destinies of this little country. “I therefore welcome you all here and trust that your discussions will be to the advantage of the farming community. I feel they will clear the air of any misconceptions and differences which now exist among you but I hope you will bear in mind at all times that the prosperity of this country will not come through the selfish attitude of any section of the community but by the realisation that all sections must w T ork together and if necessary be ready to make sacrifices if we are to see that Utopia for Avhich we all yearn.’’ (Applause.)