The Northland Age OFFICIAL ORGAN OF THE FARMERS’ UNION. Published Twice a Week. WEDNESDAY and FRIDAY Price Twopence. WEDNESDAY, NOV. 2. MONEY FOR FARMERS

Northland Age, Volume 27, Issue 43, 2 November 1927, Page 4

The Northland Age OFFICIAL ORGAN OF THE FARMERS’ UNION. Published Twice a Week. WEDNESDAY and FRIDAY Price Twopence. WEDNESDAY, NOV. 2. MONEY FOR FARMERS

It is evident from the jrenil of d scusstotts on this most import. nt issue in Parliament, that the Government is at least making an effort to meet the growing demand among firmers for a sufficient supply of money tor development purposes a! a reasonable rate of interest. Dear money and languishing markets tor primary produce has in the main been responsible for the depression experienced in the Dominion during the past two years, and it is lime the Government awakened to the necessity tor improving (he position. Economists are for the most part agreed as to the legitimacy of the wages of money, hut they are also agreed that too high a value may be set on the functions of money. In other words it is poss ble to exact too great a toil from the producers in order to make money earn high wages in the form of interest. The position is quite clear. By demanding an exorbitant tate ot interest financial institutions, while returning handsome dividends to . their shareholders from ihe proceeds of inflated monetary values, also cr ate a system of stagnation and d gression, which causes an rcenomicaituat'ion of the worst possible type. No Government and no individual can expect to cscaoe from a system of usury such as has developed in this country in a legalised form. There is only one remedy break up combines, fester competition, and this will lead to a condition of affairs financially, as to make it easier for industry to expand freely. At present industry is shackled by a vicious financial monopoly and beggary is the result. The farming community is crying out for relief from oppression and the Government is now endeavouring to ease the burden. The *xtent to which it will be eased remains to be seen. In our judgment it will appear that the proposed remedy is not adequate or anything like it. A financial institution owned lock stock and barrel by the people, seems to us the only remedy. Backed by the people such an institution cannot but be a success. Cheap money will bring about an era of prosp rity with a sound business basis and freed from that monster “inflation.’’