FARMERS’ PLIGHT

Southland Times, Issue 21275, 22 December 1930, Page 6

FARMERS’ PLIGHT

REPORT OF COMMITTEE NEED FOR IMMEDIATE RELIEF ■ •DRASTIC ALTERNATIVE * '‘That in the event of no relief being immediately forthcoming, the Farmers’ Union request all its members and farmers generally to refrain from buying goods or employing labour until the price of these goods and services are reduced to a parity with export prices received by the farmers,” was a proposal' made in a comprehensive report on the economic situation presented to the meeting <’4 the Provincial Executive of the [Southland Farmers’ Union on Saturday. The report was produced by a committee set up to investigate the matter, and after it had been discussed and altered in one or two minor particulars it was adopted. The report was as follows:— The committee held three meetings, all of which were well attended. Discussion centred round two main points:— (1) The obtaining of further authoritative statements showing the present econoniic position of the farmers, and (2) Ways and means of putting right the economic wrong that now exists. With regard to (1) : A request was made to the Statistical Department to compile tables showing the movement of farming costs since 1914. Your committee is pleased to report that this information is now available and is to be found in the September issue of the Monthly Abstract of Statistics. Southland has every reason to claim credit for this information which forms an authoritative foundation statement of the farmers’ position. The latest available figures (September, 1930) show the position as follows, taking 1914 as 100:— Wages 166 Retail prices .... 157 —cost of living Farming costs (ap) 160 Export prices .... 105 To-day the position for the farmer in even worse than the above, as export prices must now be in the vicinity of 95, or 5 per cent, below the 1914 level. Your committee would point out that it is absolutely unreasonable to expect the farming community to tolerate this position any longer. Your committee also considers that fuller and more definite information of the farmers’ case is desirable. We fully appreciate the valuable assistance being given in this connection by the bulletins issued by the Canterbury Chamber of Commerce —particularly the December issue. Procedure Recommended. With regard to (2) your committee recommends the following procedure:— (1) The collection of all available data and the further facts showing more fully the present economic position of the farmer. (2) An educative and organizing campaign among the farmers and others with a view to more combined and effective political action for the purpose of demanding and forcing justice to the farming community. (3) Your committee resents the attitude of certain writers and would-be economists in attributing the cause, of the farmers’ present difficulties to the popular theory of the high price of rural land. In answer to this fallacious theory, we would point out that capital invested in average New Zealand land under good management has eiery right to expect and receive as good a reward as if loaned to the Government to be advanced to farmers through the State Advances, viz., 51 per cent. We are of opinion that at present scarcely any sheep or dairy farmer is earning any interest whatever on his capital no matter what price he paid, for his farm, while town property-still remains at inflated values and rents. (4) That the national income is being appropriated to-day by certain sections of the community, and that there is nothing left for the farmers. On this account farmers are infinitely worse off than in 1914, while the great majority of the rest of the community are enjoying an artificially inflated prosperity. The farmers feel justified in asking for and demanding a fair share of the national income which they have so large a hand in producing.

(5) Your committee recommends that the following points of policy be stressed: — (1) That the Government be requested to bring farming costs and prices and charges generally into harmony ■with, export prices for farm produce. (2) That New Zealand coats for goods

and services be materially reduced to bring down the cost of living, and thereby reduce the cost of production for both primary and secondary industries. (3) That the Arbitration Court be amended to provide for compulsory conciliation, but voluntary arbitration.

(4) That protective tariffs be gradually reduced with a view to bringing the price of manufactured goods into harmony with the price of raw materials. Note: The farmers have no protection in the world’s markets, and must have the

right to buy their requirements also at world prices, e.g., compare the price of wool in a suit of clothes with the price of suits to-day. Lower Costs and Charges.

(5) That the Government be asked to reduce the cost of Government by a substantial reduction in salaries and wages and to reduce borrowing especially for works that will not earn interest on the money expended, as the ever increasing load of interest to be found by taxpayers is mounting in an alarming fashion, ,(6) That business and professional people assist in the necessary post-war readjustment by reducing their salaries and charges, so that the price of goods and services can be cheapened: such goods as manures, seeds, clothing, boots, etc., and such services as legal, dental and other professional charges. Town rents should also be reduced so as to assist in the lowering of the cost of living. These people should reduce to somewhere near the 1914 level as the farmers have been forced to do, and we are pleased to know that many business people have already taken steps in this direction. (7) While not in favour of a moratorium, this committee suggests that immediate financial protection be rendered to those farmers who although ordinarily solvent, now find themselves under these unfair conditions financially embarrassed. (8) That in the event of no relief being immediately forthcoming, the Farmers’ Union request all its members and farmers generally to refrain from buying goods or employing labour until the price of these goods and services are reduced to a parity with export prices received by the farmers. In this connec- , tion, farmers consider that farming is being treated as a non-essential industry, the natural result of which must be a continuing increase in unemployment seeing that the State is paying a higher reward for services than can be qttained by farmers. In conclusion, your committee respectfully asks the non-farming community to share the sacrifice that is now being forced on the farming community, and to join in an effort to put New Zealand’s financial and economic house in order before disaster'overtakes us, and before the sure law of economic forces works for us in its cruel way what we should and can avoid by timely action. The Report Discussed. . Mr R. Sim presented the report and-said

that it dealt with a matter that had been before a committee set up by the union for some time. After moving its adoption, Mr Sim said that the committee had spent a great deal of time on the preparing of the report and he hoped it would meet with the approval of those present. There might be items that would require amending, and such amendments could be inserted before it was forwarded to the Dominion Executive.

The report was seconded by Mr T. Major, who said that he was in favour of a mass meeting being held to approve of the report so that it could be sent direct to the Government. Unless Parliament met the situation would never be met, Mr G. Hamilton said. He suggested that the union should press for an early meeting of Parliament. The president (Mr Erskine Bowmar) said that it would be a good idea to add that to the report.

Mr R. Sim said that be would second the suggestion if it was put in the form of a motion. This was agreed to and the clause was added to the report. Mr Major asked if an immediate meeting of Parliament was desired. Mr Hamilton said that, it would be impossible to get a meeting of Parliament before the return of the Prime Minister.

Objection to clause eight was voiced by Messrs Earwaker and T. McCann, the latter claiming that it would mean a boycott. It, was no <>use pulling the report to pieces, Mr L. Hill said. They should stand by it and fight for their rights.

Considerable discussion followed, on the final sentence of clause eight, members expressing the opinion that its wording might lead the public to think that the union was in favour of nationalization. One member said that it might be a good thing if the State employed the farmers, too, because they would then get superannuation. (Laughter.) The clause was finally altered to read: “The natural result of which must be a continuing increase in unemployment seeing that the State is paying a higher reward for services than can be attained by farmers,” instead of “The natural result of which must be to let the State employ all labour seeing that the State is paying a higher reward for services than can be attained by farmers.” “Best Clause In Report." Mr A. McKenzie said that he was in favour of cutting out |he first part of clause eight , because they could not carry it into effect. Other members expressed the opinion that the'clause could be carried into effect, and Mr W. 11. Ward said that the farmers would have to carry it into effect to a certain extent because they had not got "the money to buy all they needed. “Don’t cut out number eight,” Mr A. McLean said. “It is the best clause in the report.” (Applause.) An explanation of sub-clause three in clause five was asked for, and the president said that. it meant that when there was a disagreement between employers and employees they would be forced to meet. If after that they would not agree the Arbitration Court would not be compulsory. In effect it did away with it. The report was unanimously adopted. Mr K. Sim moved that the report should be placed in the hands of the president and Mr D. Dickie for action. This Was agreed to. The president thanked the members for the way in which the report had been re-ceived,-and a hearty vote of thanks was accorded .the committee. ■ • ; .