Notes of the Week

Northland Age, Volume 1, Issue 9, 4 December 1931, Page 10

Notes of the Week

'J'HE farmers of Manitoba, Canada, seem to be in a bad way owing to the low price of wheat—practically their only crop. The Farmers’ Union at their provincial conference have declared for out-and-out Socialism. They decided that their troubles were due to “the inherent unsoundness of the capitalistic system,” its control of distribution with the exaction of rent, interest and profit. They want the land to be nationalised to provide them with security of tenure, and lined up with the United Farmers of the neighbouring province of Saskatchewan in supporting Socialism. They have also determined to re-enter the political field and capture the provincial legislature.

f 'J r HIS is in its way a portent. The small farm owner, with a stake in the country, has always been looked on as the last and most stable bulwark against revolution, and if the farmer goes over to the enemy bag and baggage then the present social system is indeed in danger. But the farmer knows what he is about. At present every small wheat farmer is up to the ears and over in debt, he is in the position of a man who has everything to gain and nothing to lose by a change however revolutionary. He would be far better off as a tenant of the State than an interest-racked owner, slaving sixteen hours a day to earn a bare living and often not getting it. If wheat goes up and he sees a chance to clear his feet his revolutionary ardour will abate. But meanwhile he thinks it will do no harm to scare the city interests who hold him in such a tight grip. Capital is proverbially timid and may be frightened into concessions. Let us be thankful that our own farming class display more consideration for their creditors’ nerves. * * * * QNE of the striking features of the general election now happily over was the extraordinary diversity of the views of the various candidates. The Government, whose first manifesto simply asked for a mandate to take whatever steps they considered right in the interests of the 'country, found it advisable to issue in the thick of the election another manifesto in which they promised assistance to farmers, the fostering of land settlement for the country and secondary industries for the towns, and the provision of homes for rural workers. But all these were strictly conditioned by the necessary finance being available. This left all, save the Labour candidates, with practically a free hand to advocate any measures they considered for the good of the country or likely to attract votes to themselves. The result was an extraordinary medley of measures advocated, evidently with little consideration from their advocates as to what the ultimate result would be.

r jUIUS we found the Reform candidate for the Bay of

Islands advocating the abolition of the Legislative Council, which the large majority of his own party look upon as one of the bulwarks of the Constitution ; and advocating inflation though a nominee of the party that claims to be the champions and defenders of sound finance. The argument is that of necessity, something must be done to “set the wheels of industry moving again.” It might have that effect, but it certainly would have others. If the Government put into circulation the smaller of the sums mentioned—twelve millions in paper money—the first effect would be to double prices since the value of our currency, thus doubled, would automatically shrink by half in value. Debts would be halved, all bank deposits including, of course, savings bank deposits, would be worth just half of what they are now. Our outside debts would not be affected since they have to be paid, principle and interest, in sterling currency, but the burden of our internal debt would be lightened by half. Costs would rise, wages would have to be doubled to meet the increasing- cost of living, holders of stocks bought before the inflation would profit as long- as these stocks lasted. The Government with twelve millions to spend and no need to bother about repayment would be able to scatter largess with a lavish hand until all the paper money had been forced into circulation and the country was faced with the consequences. ****** 'J'HAT such a scheme should be seriously proposed by one who claims to be a “practical man,” which means, if it means anything, a man who promotes measures that will work, only shows how narrow the vision of the “practical man” really is. For this scheme of inflation has been tried over and over again in the last two hundred years, always with the same disastrous results. What happened in Germany and France is well known to everyone. Less well known perhaps is the fact that it has added hundreds of millions, to Britain’s war debt, and largely added to our own. Of course there is no chance of such a scheme being tried in New Zealand today, even if a majority of the members of parliament were returned pledged to it—parliament must do what our real rulers—who are not the visible ones—dictate to it. But it only shows either just how great is the knowledge and wisdom of parliamentary candidates or how low they rate the knowledge and wisdom of their hearers.