AID FOR THE FARMERS.

New Zealand Herald, Volume LXVIII, Issue 20991, 30 September 1931, Page 13

AID FOR THE FARMERS.

Sir, —The remarks reported to have been made by Mr. J. E. Makgill, relative to the urgent necessity, in the interests of the whole Dominion, of additional assistance for tarmers, are on very sound lines. The general public is unaware of the terrible plight of many of our farmers. Although they know that lack ct* top-dressing is a suicidal policy, farmers have either not top-dressed at all, or done so to so small an extent as to be almost negligible. They feel they simply dare not take anyfurther financial risks, and fertilisers are expensive. Further, the farmers knowthat, m big financial circles, the opinion is still held that a reduction in land values of at least 50 per cent, is the only road toward re-establishing Dominion finance. This opinior is most iniquitous. The responsibility for land inflation really lies with the past Governments of the Dominion and with the banks. The farmers were made to pay the cost of that inflation. It is most iniquitous that they should now be expected to pay the price of deflation. The way to tackle the problem is to make the lands worth their present value by increasing their productivity. The farmers themselves are financially unable to secure for themselves (and for the Dominion) that increased production on which our whole future depends. They must be helped. Unless something i 3 done, and done quickly, our Jrodnction will show a decline, in the year in which we most need the big production, which alone will off-set continued low prices, and we have no guarantee that prices will rise. In March last the Government set aside £IOO,OOO for the use of farmers for fertilisers, on loan through the Rural Intermediate Credit Board—special loans, not requiring the full inquiry into the farmer's affairs needed for an ordinary R.I.C-. loan. The security demanded by the board is two promissory notes of equal value, one backed by the farmer himself and one by a reputable company. On these conditions the money has been absolutely useless to the farmers. Merchants and dairy companies have preferred to give credit themselves to their customers rather than to back the promissory note to the Rural Intermediate Credit Board. The suggestions made to the Government, and which are still under consideration, are (I) that at least half of the £IOO,OOO on offer should be diverted to be used a.s a subsidy on fertilisers, to such an extent as to bring down the price of superphosphate below £4 per ton, and (2) that the Rural Intermediate Credit Board will be content to accept a " character backing" for the promissory notes, as was done in the case of advances to settlers after the Raetihi fire disaster. All this has to do with fertilisers alone. The whole matter needs to be carried further still. The farmers cannot carry on with their present burden of overhead expenses. In some way or other interest charges on mortgages must come down. The prices of our staple commodities for home use must come down: and those responsible for the maintaining of high prices for building materials, farm necessaries and foodstuffs must be brought to see that they are adopting a policy suicidal, in the end, to themselves and ruinous to the Dominion. City motorists can help by refraining from insistence upon the spending of money on main highways so that a percentage of the Tncome of the Highways Board can be diverted to rural purposes. Farm lands stand in urgent need of derating. The farmers borne too high a proportion of the cost of roads used mainly by city motorists and transport companies. fn every sort of way the farmers' overhead expenses must be brought down, and the utmost assistance given to our primary producers —not, be it insisted, for the benefit of the farmers alone, but in the interests of the whole community of the Dominion, for our whole economic structure has the primary producers as the foundation —and the foundations are cracking badly! Artifex MIXMTTS.