GUARANTEED PRICES

New Zealand Herald, Volume LXXII, Issue 22191, 19 August 1935, Page 12

GUARANTEED PRICES

Sir, —The various—and they are various—explanations of the Labour schemes for guaranteeing the export prices of wool, meat and butter, are interesting, even though conflicting. They all agree on one point, that the guaranteed price will be above the market price, but the different speakers disagree from hew this loss is to be made up. So far there are three different methods put forward, namely: —(1) The loss will be recouped by "creating currency" or "manufacturing the money." This is clearly inflation and, owing to the basis 011 which this currency is to be issued, it would quickly depreciate in purchasing power. (2) Another solution, Mr. Langstono's, is to load the imports with the loss. By this means the farmer eventually repays whatever help he has had from the guarantee, "which," said Mr. Langstone, "is surely a fair deal." It may be fair, but it leaves the farmer "as you were." (3) Some candidates are candid enough to admit the truth and say the loss must be paid by the people of the Dominion 0111; of taxation. But to make this appear reasonable they argue that the farriers' prosperity is essential to everyone. Therefore we must all contribute in order to give the farmer the high prices upon which our own prosperity depends. In other words, pay ourselves with our own money to become richer. N.Z. Welfabe League.