PRODUCTION.

Southland Times, Issue 19985, 27 September 1926, Page 11

PRODUCTION.

To the Editor. Sir, —I am quite satisfied with the effort made by “Suum Cuique” to deal with the questions I had submitted to him. He says that he could see neither rhyme nor reason in them; but let me remind him that others could see the significance of the questions. Your correspondent had affirmed that the agricultural depression was due to the indirect system of taxation. The evidence does not support the assertion. In fact, the attempt by “Suum Cuique” to deal with the questions proves this—and I would like this to be assimilated by 7 him —that any system of taxation, direct or indirect, that can be devised instead of being a cause either of depression or prosperity is really a result of the social system. Direct taxation deals primarily with income. Customs duties affect and influence consumption. The latter method then, as a means of raising revenue or of supporting secondary industries, is definitely limited in its area by one’s purchasing or spending power. If the means to buy is not available there is nothing more to be said. The original question concerning agricultural depression remains untouched by “Suum Cuique.” The reasons why farmers are leaving their holdings or why they are passing through a period of temporary embarrassment must be sought elsewhere. It does not seem to have struck the imagination of your correspondent, sir, that depression and prosperity follow known causes as night and day. The “boom” period prepares the way for stagnation. Over-production or any commodity, or under-consumptiop, or both together, will bring about the same result. The late Professor Jerons proved clearly to all who think that trade follows a cycle that during a period of, say, ten years, a country passes through the cycle of good and bad times in free-trade countries just as well as protectionist countries. The payments made by farmers in interest on their mortgagees as well as the high valuations, which prepared the way for securing bigger mortgages, these are the handicaps on production. And until values again reach their true level, any discussion round the question of taxation for the benefit of farmers will be similar to the application of a poultice to a man’s wooden leg. I believe that in the best interests of farmers, no matter how disagreeable the process may be, a period of deflation of land values in order to get rid of top-heaviness is absolutely essential The farmers, by means of co-opera-tion, can successfully throw off the parasites living on them and straighten out the tangle.. In a word, they, the farmers, must work out their own salvation by co-opera-tive efforts and not by way of the politician. Let me say that the persistency of ‘Suum Cuique” calls forth my admiration; and perhaps the ventilation of ideas such as we have had will enable both of us to see things in their right perspective; and by assuming a correct attitude we shall be better able to perform the operation of casting out the beam that is in “thy brother’s eye.” The cultivation of the land is of prime importance to the future of New Zealand.

And every effort must be made by disinterested persons to help rehabilitate the farmer as a producer of wealth unencumbered by unreasonable loads of debt.—l am, etc., “SOUTHERNER.”