ECONOMIC PROBLENS.

Northland Age, Volume II, Issue 33, 20 August 1930, Page 3

ECONOMIC PROBLENS.

(To the Editor) bir, —Seeing the many risks and disproportionate expenses inseparable from cereal production in comparison to those incidental to pasturage farming, it was certain that, while the latter remained profitable, very tew farmers would grow cereals, and so> the only way to maintain the necessary production of wheat was either by a safeguarding guarantee from the State to the growers, or by the Government buying all the land suitable tor wheat •ftroduction, and allowing wheat to pass the Customs free from duty. Also seeing that there are immense acres of waste Crown lands, one would think the Government policy would be concentrated on settlement thereon until every available acre had been converted into profitable national assets, even though the iand was offered as a gift to the applicants. Then the Ministry might seriously consider the desirability of largely increasing secondary production. Undoubtedly there are excellent reasons tor an increase, but there may be

excellent reasons for limitations. Generally, self is the predominating factor in our economics and that may lead us into paths inimical to Empire unity by injuring our fraternal relations with the Homeland —’wherein our very best markets, and most liberal financial aid to our enviable industrial progress, have been found. Also, our national safety from predatory attacks from envious foreigners wil) probably always depend on the certainty (• of interv||tion by Great Britain. Enormous' - areas of unoccupied land and restrictive immigration are not conducive to the maintenance of international amity. Wages are also a crucial factor in our economic life, and, if universal free trade, and safeguarding tariffs are adopted (and I earnestly hope they will be) where the British race predominates numerically within the Empire, can our industrialists compete with those in Britain where the raw material is manufactured by much cheaper labour than that in this Dominion. This is »in inventive era in world history, and a comprehensive view of the subject matter would seem to show that, although secondary industries may absorb more labour, that labour may continue to be displaced by machinery until in sheer desperation citizens will be compelled to adopt some drastic alteration in our political economy to enable every able bodied man and woman to be permanently employed in productive work, until that political innovation eventuates, unemployment its demoralising accessories will be recurrent. As the land and climatic conditions in New Zealand are (miinently suitable for » primary production might it not be the best economic policy to mainly rely on Britain for manufactured goods ? William R. Keay.