Farmers Menaced By Manufacturers

Northern Advocate, 12 July 1939, Page 3

Farmers Menaced By Manufacturers

[Special to “Northern Advocate ”] WELLINGTON, This Day.

With the encouragement of the philosophy that there could be made in New Zealand all the things needed to maintain the standard of living, and that it was not necessary to worry about the export trade, the question was being asked whether it mattered seriously if the Dominion’s farmers, or a lot cf them, went out of business, stated Mr W. W. Mulholland, president cf the New Zealand Farmers' Union, at the annual conference, which opened yesterday.

Farmer Belittled

Mr. Mulholland said that suggestions of this nature were being put over the air frequently from various wireless stations under Government control in o. maniier calculated to belittle the farmer and boost the manufacturer; but Lie farmers were not allowed to reply. If these attacks were to be continued. lie said, it would be necessary for tlxe farmers to find a means of reply through wireless stations which were not within the control cf the Government. Consumer Goods. Mr. Mulholland pointed out that Reserve Bank statistics showed that out of total imports for 1938 amounting to £55,422,000, only £19,691,000 were for finished consumers’ goods. The remaining £35.731,000 was spent in tht production of local goods and services. As imports must be reduced by the Government in 1939 to. not more than £35,000,000, possibly to £30,000,000, manufacturers would have difficulty in obtaining materials and equipment to maintain last year’s production, even if no finished consumers’ goods were imported at all. “It is obvious, therefore, that any fall in farmers’ production for export must materially reduce the amount, of goods and services that local manufacturers can supply,” said Mr Mulholland.

Production Must be Maintained.

“If we are to continue to enjoy anything like the standard of living which we have been enjoying, it is absolutely necessary that the production of the farmers of New Zealand shall be maintained at least at its present level. It is pure stupidity to suggest that any country can maintain its high

standard of living independent .of the complete maintenance of its export trade.”

Internal Costs Adjustment,

The primary production on which this depended could only be maintained by adjusting internal costs to a satisfactory relationship with export prices, continued Mr Mulhollanck

It was still the soundest method to bring this ' satisfactory relationship about by reducing costs, but if the people would not agree to that, then the next best thing was to allow .the exchange to go free, when the rate would adjust itself automatically to its true value, thus equalising the value of our currency, internally pnd externally.

Exchange Adjustment

If the Government was not prepared to do this, then certainly the exchange should be adjusted from time to time to as nearly as possible the real value of our currency, otherwise the inevitable end would be that our currency would entirely lose its value, and the whole country would be involved in disaster.