OUTLOOK FOR FARMERS.

New Zealand Herald, Volume LX, Issue 18455, 19 July 1923, Page 11

OUTLOOK FOR FARMERS.

PRIME MINISTER'S FORECAST. STRENGTH OF .DOMINION. PLANS FOR ASSISTANCE. ■ [BT TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON. Wednesday. "You have suggested that 1 should do something to assist the agriculturists of this country in connection with the present conditions," remarked the Prime Minister in the course of a most interesting address to a representative gathering of the primary producers of the country at the Dominion Farmers' Institute to-day. "I am doing the best I possibly can in that direction. I have always thought that the proper thing for the Government of this country to do is to assist the producers in every possible way, because, in assisting th© producers, the Government is assisting the whole community. That is the line which I have taken, and which I am endeavouring to follow now. "Of course, there are lions in the path, so to speak and I have to get rid of them in the best way I can. Although there are difficulties before the producers and the country to-day, those difficulties are iimal! compared with what they were a couple of years ago. Two years ago the outlook was very bad, and I told a deputation of fanners then to go back to their farms and take their coats off, and show en example to the rest of the country, and that if they did so we would very soon get out of our difficulties. They took my advice. Probaby they would have cot to work even without my advice, but they did get back to work, and I am glad to thank that the country is in so good a position to-day.' ' Demands on the Treasury. Mr. Massey said if those present would ptudy the Financial Statement' which he | had recently presented to Parliament they I would «ee that this country, compared with the position of other countries, was! in a position to be envied. "I know," added Mr. Massey, "that we have to keep our finances right or else we will not go . very far." The Prime Minister said tne Government reduced the taxation of the fanners as well as other people. Last session, he said, the demands on ' the Treasury from all quarters wore very numerous. "I have to sit on the Treasury chest all the time, and I am afraid I shall have to continue to do so," he added, amid laughter. "We got through last year, and instead of increasing our indebtedness, as we have been doing for many years past, we actually reduced our indebtedness. The indebtdness of the country was reduced by practically a million and a-half. I think that is something to be proud of— any rate, from my point of view." Exports Doubled in Eleven Years.

In 11 years we had doubled our exports, added Mr. Massey. Eleven years ago, when on a visit to Timaru, be attended a luncheon. At that luncheon the then member of the district, his friend Mr. James Craigie, made a practical suggestion. He said the first thing we should do was to increase our exports. "In a rather joking way," continued Mr. Massey, "I turned round to Mr. Craigie and said, 'If we can increase our exports to £30,000,000, will you support the Government?' (Laughter.) He replied, I will.' Well/' remarked Mr. Massey, amid renewed laughter, "we got our exports last year up to £47,000,000. I expected a good year, but I did not think our exports j would reach that sum. That means that we are going to pay our way, and 97 per cent, of that export comes from the products of the soil"' The Moratorium. When talking about the moratorium, it must not be forgotten that it did not apply to any mortgages entered into since October, 1919. That took a big slice out of the amount of the mortgages which had to be dealt with. The different lending departments of the State >,eld a many themselves. The officiers of the departments informed him. that arrange-1 ments were being made every day between the mortgagee and the mortgagor. | The departments were helping in every possible way. Mr. Massey spoke of the unreasonably high price given in many instances for dairying land, in some cases £80 per acre for land worth about £35. As the result of work done by the Valuer-General, satisfactory arrangements had been made between 150 pairs of mortgagees and mortgagors. If such a spirit wsre displayed right through, he did not think there would be much difficulty at the end of next year. He knew, of course, there would be some difficulties, because in some cases the securities were not what they should be. The Prime Minister then mentioned the assistance given to settlers by the lending departments of the State, The Prime Minister remarked that he

would have to ask local bodies to go slow in their demands. He did jiot say they were going to close down on advances to local bodies altogether, but they would have to reduce the amounts which had been advanced. Seduction of Taxation. The paramount importance of reducing taxation was then emphasised, and- the Prime Minister stated what had been done by the Government and the object in view in still further reducing taxation. They should endeavour, in his opinion, to as far as possible reduce or remove the taxation which waa imposed for war purposes. As to income tax, the argument was always based on the maximum. Ths maximum was 7s 4d. He hoped to reduce that from 7s Ad to ss. A great deal was Raid about the cost of living, but the cost of living could not be materially reduced until taxation was reduced.

There were now indications that money was becoming more plentiful and easier. As far as the Government was concerned, they wanted to make it easier for the man who required money and had good security. "I think the outlook is all right as far as New Zealand is concerned," remarked

Mr. Massey in conclusion. "The citizens of this country are peoo 1 e to be envied. It is a.'great, country. Thank Providence end take courage."

COST OP PKODUOTION.

BETTER PRICES NEUTRALISED.

[BY TELCOEa^IT. — / SSOCIATIGN. J

WELLINGTON. Wednesday.

In the.course. of an address at the conference of the Council of Agriculture Mr. J: D. Hall, president, referred to a statement regarding the cost of production in the Budget, which said the past season had been an exceptionally good one for the primary producers, " because prices and production had been maintained, and the quantity and value of our exports had been increased." This, no doubt, was correct, but no notice had been taken of 'the other side of the pr6ducers' account, which showed that the cost of production had also increased, so that the net result to the fanner was much the same. It was desirable to emphasise the importance of developing an efficient system of herd testing, and "that unceasing war should be waged on the " scrub" bull and "robber" cow, which were, a most obnoxious pair, and a, great handicap to the industry.