AGRICULTURE DECONTROL

Otago Witness, Issue 3509, 14 June 1921, Page 19

AGRICULTURE DECONTROL

BREACH OF FAITH ALLEGED. LONDON, June 7. The Daily Express states that Cabinet lias decided to decontrol agriculture, both with reference to guaranteed prices to farmers and wages. The decision caused a, sensation amongst tlie masters and the men, who declare that it is a breach of faith, and will result in chaos and turmoil. It is believed that the Wages Board will be permitted to continue for a sufficient time to permit the necessary adjustments, but the guarantee in respect to wheat and oats will disappear when the present crops are harvested. The decision is attributed to the financial crisis, and is precipated by the coal crisis. June 9. The decision to discontinue the control of agriculture and to abolish guaranteed prices and minimum wages resulted in a political sensation. Tlie step is due to the fact that the Government is now thoroughly aroused to the gravity of the financial situation. It is pointed out that whereas the revenue since last April has decreased by £100,000,000 compared with last year, the expenditure has only decreased by £18,000,000. Thus far the expenditure lias been £223,000,000 and the revenue £155,000,000. Tlie States is losing £10,000,000 monthly on the railways. The scrapping of the farmers’ guarantee is not saving current expenditure, but it is an avoidance of what might become an unsupportable liability in future. There is certain to be a storm over the violation of the definite four years’ pledge to the farmers. Other evidences of the economy scare at Whitehall are the disbandment" of the reservists, the changes in the unemployment benefits, and the cutting down of the State housing schemes. It is estimated that tlie change in agricultural policy will save £25,000,000 next year, but there is a danger of an agricultural strike if an attempt is made to cut tin* wage of tlie agricultural workers with undue lurste.