THE DEPRESSION

Otago Daily Times, Issue 18468, 1 February 1922, Page 6

THE DEPRESSION

SOME ASPECTS OP IT. ' Interview with mr h. BEAUCHAMP. (From Oor Own Correspondent.) AUCKLAND, January 31. Some aspects of the prevailing depression among the farming community were discussed in an interview with Mr Harold Beauchamp, Chairman of Directors of the Bank of New Zealand, who is visiting Auckland, following a visit to the country portions of this province, Mr Beauchamp said he was immensely impressed with the progress made within a few years bn lahd= which, formerly regarded as almost waste areas, were now in profitable cultivation. “Unfortunately, owing to a policy followed by so many farmers, in basing land values on prices from time to time ruling for produce,” continued Mr Beauchamp, “many people are saddled to-day with properties on which they will have very great difficulty in making a living. Some time ago I expressed the opinion that land values throughout the whole of the dominion should be toduced by something approximating 50 per cent., and the more I see of farm lands, the more impressed I am with the accuracy of that statement/’ Mr Beauchamp added that great consideration was being shown by financial institutions particularly banks and mortgagees generally, in dealing with producers, who were feeling the present money tightness; and he was inclined to think that by the exercise of thrift and hard work we would sooner or later come oat all right. Trading generally was now on a better footing than was the case a few months ago, due to the substantial fallmg off. in imports from overseas, and the realisation of heavy stocks of merchandise, which were brought into the country about 12 months ago. It would, ’ however, be necessary to pursue a policy of restriction for some time to come, in order to keep traders within bounds. It was gratifying he said, to notice that in spite of adverse financial conditions there had so far been few bankruptcies in New Zealand. For some time past, continued Mr Beauchamp, there had been a strong agitation °q the part of farmers to control their own affairs, and thus get rid of tie muchmaligned middleman. Experience, liowever, had taught that while a man might bo a good farmer, ho was likely to meet ius Waterloo when he engaged in commercial pursuits. Several of the co-operative °° n f® rns m the dominion, which no doubt oould have made a success of manufacturing butter and dheese, found themselves in troubled waters by having undertaken the sale of merchandise. “There is a diversity of opinion as to whether (he meat pool is gomg to be a blessing or on evil. said Mr Beauchamp. “Personally, lam not an advocate of Government control, believing m that epigrammatic statement made bv resident Harding when discussing the financial outlook with a number of business men some months ago, when he said that it there was less Government in the business, and more business in the Government it would be in the interests of all concerned. However, in respect to the frozen meat industry, I recognise there could be many improvements effected, bolh in New Zealand and in the United Kingdom. Every effort should be made to cut out several porta of call now visited by overseas vessels. In New Zealand more attention should be given to grading, and a reduction of the number of brands winch in sorting out entail delay in discharge at the ports of destination.” Speaking of the need for quicker delivery at London and other ports Mr Beauchamp said he know of a case where a delay of six weeks occurred between the arrival of a vessel at London, and the delivery of her cargo, and it was obvious that this state of affairs, as well as the time lost in calling at so many dominion ports, was taken into consideration when freight rates were fixed. There had been a few concessions made in freights, and he thought the tendency was still downwarda

“1 know it is not a popular thing to advocate,” said Mr Beauchamp, “but I am satisfied New Zealand it not going to get any real benefit until we can effect a substantial reduction in the cost of transport, as well as in the cost of production. This can be accomplished only by all descriptions of wage-earners cheerfully accepting lower rates, of pay. It has been argued that workers should not submit to a reduction until the post of living falls. That, to my mind, is putting the cart before tie horse- The cost of living unquestionably cannot drop until a reduction of the cost of produotin can be brought about, and this oan be achieved only in the manner I have indicated. It should be borne in mind that if we are able to bring about a reduction in the oost of production this will place the worker in a better position than he enjoys to-day, owing to a lowering of the oost of living that will follow.” It was impossible to detect in the cities any real effect of financial stringency, which was evident in the dominion, Mr Beauchamp continued. This was duo to all classes of the community still being in receipt of high wages, which were paid during the war, and it was only on visiting the country districts that the effect of the alteration in our financial affairs could bo seen. Many farmers had told him that their employees had cheerfully agreed to aooept lower remuneration until the advent of better times, and in many oases an excellent feeling between employers and employees existed.