THE FARMING OUTLOOK.

Otago Witness, Issue 3511, 28 June 1921, Page 8

THE FARMING OUTLOOK.

Settlers will have been generally interested in the views expressed by Mr Harold Beauchamp (chairman of the Bank of New Zealand) at the annual meeting oi shareholders in Wellington on the 17th inst. The head of a concern which can show profits of some £B9o,o9o—just about double that of last year—will probably see further into the future than most men. Speaking in respect to our dairy produce, he says that Britain was ever our best and practically the only customer for our butter and cheese. This customer has been impoverished by the war, by internal strikes, and by political unrest, and by the inability of Europe to purchase goods except at small prices, in reduced quantities, and on long terms of credit. It would be folly to expect that buter would again sell at £2BO a ton. He anticipated, however, that butter would not fall as low as the 1914 average —viz., 116 s per cwt. In respect to wool, we are not surprised to learn that Mr Beauchamp believes in the law of supply and demand, and believes in letting things find their own level. To attempt to bolster up prices by artificial means was an economic mistake. Verily, prosperity in New Zealand depends on prosperity in Great Britain, and this will involve time, and depends a good deal on the recovery of trade and commerce in Central Europe and Russia. ‘‘Hard work and thrift are still the only way to salvation.” Meanwhile production must be made to pay on the present price level, which means contracted profits and lower wages, unless there is a great increase in the efficiency of production. The cost of living generally is too high ; hut this can be reduced by doing without. Increased efficiency of production and lessened spending in luxuries will go a long way towards happier days. We cannot afford strikes. In Mr Beauchamp’s opinion, “go slow” tactics must be “cut out.” Shipping freights and excessive overhead charges on the part of trading combinations must be whittled down; otherwise we tend towards diminishing production, and thereby increase the burdens of the workers and reduce the purchasing power of his wages. The loss to the Dominion in the importation of coal owing to the policy adopted by the coal miners was the subject of strong animadversion hv him. “All this money’’ (not less than three-quarters of a million), he remarked, “which in these days of stress would serve so useful a purpose in providing employment within the Dominion, has been sent out of the country, and is incidentals helping to increase the exchange difficulty.” Mr Beauchamp’s views of the “isms” is timely. “So far as we are concerned, we may look for many changes and the collapse of many economic faiths that have been built up on fallacies. Socialism, Sovietism, Communism, Bolshevism, and all other “isms” must perish. We must take a broad view of the outlook, for, if we are to have any improvement in New Zealand, that improvement must emanate from outside, and for us that “outside” means Britain. The speed with which recovery takes place in Britain must largely depend upon the position on the Continent of Europe. And “so say all of us.”