DISMAL OUTLOOK

Southland Times, Issue 21218, 20 October 1930, Page 8

DISMAL OUTLOOK

ECONOMIC POSITION

NEED FOR IMMEDIATE CONSIDERATION

ATTITUDE OF FARMERS

The urgent /necessity for serious consideration of the present unfavourable economic situation was stressed by the Southland executive of the Farmers'Union on Saturday in the course of a pessimistic debate. Strong support was given to the suggestion of the Leader of the Opposition (the Rt. Hon. J. G. Coates) that a special economic conference should be called to carefully consider all aspects of the situation. The president (Mr E. Bowmar) reviewed the serious position in which the present depression had placed the farmers. Prices for primary products were being forced down, but the costs of production showed no similar tendency. The position was so serious that the speaker felt the executive should give support to the suggestion made by Mr Coates that there should be another economic conference. The representatives of labour were still going to Parliament and asking for an increase of wages. He urged members to give serious consideration to the matter. Other industries could close down in times of depression, but the farmers must carry on. An Artificial Standard. Mr T. Major said this was the most important question facing the farmers. The executive represented a large number of members who were looking to the union to do something to right the present serious economic position. The prospects for all classes of farming during the coming season were very depressing, and it looked as if the farmers would be asked to bear more than their fair share of the responsibilities for the. country. It seemed that every section of the community except the farmers was in a sheltered position. There was an artificial standard of living and the farmers were compelled' to buy in an inflated market with the result that costs of production had been forced up to an abnormal height. Australia could no longer bear the taxes imposed on primary production and New Zealand was fast approaching a similar position. Mr L. Hill said that the high overhead charges of the commercial" firms was causing, the costs of the farmers’ goods to be forced up. He believed the commercial firms should be induced to restrict their extravagant activities in sending representatives around the country in motor cars •when this was not necessary.

Mr J. Johnston said that other matters beside high wages were responsible for the unfortunate economic position that ruled at present. It was known that the Arbitration Court had raised wages every time it had sat, but other influences were equally responsible. Mr W. H. Ward said that no suggestion ■should go forward from the executive that wages should be reduced. Many of the working community were going through difficult times and no suggestions that wages should be reduced should be made until the farming community had something to offer the workers in the shape of reduced cost of living. Unemployment Relief. Mr T. Giller said that instead of men being paid 14/- a day as relief on nonproductive works, the Government should subsidize the unemployed to the extent of seven shillings a day to do work for the farmers who could contribute another five shillings a day. In this way, productive work could be done at a low cost to assist the farmers. Mr P. Arnott asked the president whether he had moved a motion advocating the holding of a conference as suggested by Mr Coates.

The president: No. I did not move it. Mr Arnott: Are you prepared to do so ? The president: Yes. Mr Arnott: Well, I think you had better do so.

Mr E. K. Sim said he believed that the executive should support the proposal to hold a conference as it was necessary that something on this line should be done to restore the position. He was of opinion that the executive should give its emphatic support to Mr Coates on this account; not because he was Leader of the Reform Party, but because he was facing the position in the right way. Mr A. R. Johnston said he felt the local Press should be complimented on its recent realization of the serious position and the ■attitude taken up in editorials. Instead of complimenting Mr Coates, he said, the executive should compliment Mr Adam Hamilton, M.P.. on his recent speeches in the House on the serious economic position. There was another member in the House who should be giving the utmost support to Mr Hamilton. Was he doing so? No. "I say it with shame,” said Mr Johnston. Crippling Costs. Proceeding, he said the position would have to be faced. The primary industry could not continue in the face of the very high costs in comparison to greatly reduced prices) If the president was prepared to move a motion as he had suggested, he would be pleased to second it. Mr Henry Smith said . he was also strongly in favour of the suggestion that a conference be called and that full credit be given to Mr Coates and Mr Adam Hamilton.

Mr T. Major said he was quite in favour of the proposal, but he thought it would be better to approach the Government of the day with a request that a conference as suggested be called rather than give support to Mr Coates’ suggestion. The president moved: “That owing to the very serious fall in the prices of primary products and the likelihood of these prices remaining permanently lower than those of recent years, it is imperative that there be a lowering of costs of production and distribution generally. With this end in view this executive strongly supports the suggested holding of an immediate economic conference of representatives of

(1) Primary producers (2) Manufacturers (3) Commercial interests (4) Financial interests (5) Labour interests, and (6) Professional interests.” The motion was seconded by Mr A. H. McLean and carried, unanimously.

It was decided to send the resolution forward to all Southland members of Parliament and to all provincial executives.