“LABOUR’S VIEWS.”

Southland Times, Issue 22732, 7 November 1935, Page 7

“LABOUR’S VIEWS.”

To the Editor.

Sir, —Like many more I have often wondered how Labour intended to work their wonderful plan of Guaranteed Prices, and have carefully studied the speeches of many of Labour’s supporters. Apparently the price is to be fixed at 1/3 per lb butterfat to the dairy farmer, as this is the price quoted by their great money reformer, Mr Young, of Waikato. Mr Doyle, in his reported speech at Gorge Road, states that it will be fixed at a fair average which will not be “boom or slump figures.” Now, I ask Mr Doyle is he fair? He will restore all wages cuts to the worker, so if the worker is to get boom prices for his labour, should not the farmer (whose farming costs if wages cuts are restored must be raised to boom times) get boom prices? However, let us study more of Mr Doyle’s theory “when prices rise, Mr Dairyfarmer shall pay back the difference between the price received and the price guaranteed.” So this wonderful scheme is only a loan! What is going to happen if the price never reaches the guarantee? Sir, I see a huge rush to buy cows when Labour gets in. The question I would like to ask Mr Doyle is this: If he raises the workers’ wages to boom prices does he intend to collar the increase against the time when goods again reach boom figures? Or will he keep labour’s wages at this level when farm products again reach boom prices? How is the guaranteed price bait to be financed. “Quite easy,” says. Mr Doyle. “All one needs to do is to issue credit from a State bank” (which does not exist). In other words issue paper money? Now, seeking enlightenment, I will be pardoned if I ask: Seeing that it is so easy why did nobody think of this manner of finance before and what would happen if the capitalistic moneylenders refuse to recognize this paper money? I can’t persuade them to take mine.

Now, sir, is not one of the reasons we are enjoying th 3 bottom of the present slump that governments in the past issued tons and tons of paper money thereby causing an unnecessary boom with the inevitable crash?

Mr Doyle tells us that to-day it is not over-production but under-con-sumption that is the cause of the farmer’s troubles. He then reels off a lot of incorrect figures which prove the opposite. Why did he not take the trouble to get the figures correct? His figures read: In 1934 the butter produced amounted to £2,197,771, in 1934 it was £12,000,000 and cheese went up from £2,250,000 to £5,000,000 and in the same period all other products except mutton showed the same increase. Now, sir, in 1914 we exported (not produced) 395,169 cwt of butter valued at £2,140,019 which rose in 1934 to 2,740,973 cwt valued at £11,691,541. In 1914 we exported 782,371 cwt of cheese valued at £2,195,278 and in 1934 we exported 1,964,535 cwt valued at £4,683,480. Is this not over-production at a price which would not pay the producer? I really wonder if Mr Doyle does know the reasons why we have in New Zealand and other countries unemployment and bankrupt farmers. If not would he like to be enlightened through your columns? —I am, etc., JOHN BOURCHIER.