TOPICAL COLUMN

Stratford Evening Post, Volume IV, Issue 103, 9 April 1936, Page 8

TOPICAL COLUMN

Subjects in Review

WAGES ON. DAIRY FARMS . One of ,■ tli e,- ,i tu port ant provisions in the guaranteed price sclieine which the Government is introducing lids session concerns the wages paid on dairy farms. These are to he governed by the price paid to the primary producer, in accordance with tentative agreement. reached between the Minister of Labour and the Farmers’ Union The principle is not new although there arc some new, novel and interesting points. A precedent can he found in shearing rales when these were fixed on a sliding scale, moving up or down in company with wool prices. The prices in this case, however,, were market prices, whereas wages on dairy farms finder the proposed scheme will vary in accordance with the guaranteed price. The system of share-milking is not really comparable, because the worker in this case is paid on results which depend on the triple factor of market price, quantity produced and quality of production. The importance of the guaranteed price in the new Labour economics can scarcely be over-estimated. It will govern farm wages, but is also supposed to bo fixed high-enough to enable the farmer to hire labour and also do.' meet the higher costs accruing under other headings owing to increased labour costs.

Under the scheme, therefore, the fixed dairy price will-deter-mine farm wattes and will itself be partly determined by these and the general wage level. The guaranteed price, subject to the factor of quantity and quality of output, will also return the farmer his income. Now, under Labour’s policy, farm mortgages arc to bo adjusted according to his income, lienee the mortgagee has a, direct interest in, and, indeed, depends on the level at which prices are guaranteed.

A STATE BANK

For all practical purposes the '{Reserve Bank will become a State Bank as. a result of the amending Bill, introduced in the forefront of the -Government’s legislative programme. Such a measure has boon - generally anticipated both by those who favour the policy ami those opposed to'it. At present* The ayes have a large majority, both within the Htmse and amongst the-people of the Dominion;- but'whether this will-be so in-later years is another-question. The passing! of legislation is one thing; its interpretation another and the actual employment of the powers available is yet a third 1 and most important matter. This is cspeeiailly so as regards the- 1 currency and credit of a nation. In his statement when introducing the Bill, the Minister of Finance said: **Power is taken to-make regulations to enable the bank to fulfil its factions as stated but'the extent of which it may be found necessary to use this power, depends upon the course of events. Generally, they arc only reserve powers for use in meeting contingencies that may arise.” The bank’s constitution, it’ seems, is to be amended to the end that it will be an instrument for the carrying out of the mone-

lai’y policy of the. Government, it is thus seen;that the future financial stability of tile Lri uninion i rests riot witli the bank, but with ! Cabinet. The principal amendments, aside from those that really place the bank directly under Govcrnnient control, are of a nature permitting great freedom in Government financing. The bank may I now underwrite any Government | loan, it is especially empowered to grant overdraft accommodation to the State or a board, for the purpose of financing the purchase and marketing of export produce. Here is trie macriinery whereby trio dairy produce guarantee policy will be put into effect. j Parliament is to pass trie Bill this week and upon this legislation a great deal Wf the Govern- | incut’s policy is dependent, guar- ! anteed prices and public works j expansion in particular, j Now Zealand is to enter upon i State control of currency and cre,i riit—a very great departure from tradition-—and in its essence this

means direct political control of money. For the immediate future jthe financial stability' of the eonnj h*.y Will be in the hands of the ; lion. Walter Nash,' Minister of ; Finance, a Minister who is be. I'lieved'to bo a man of very eonsid- ! era ble ability and tempefament- | ally-fitted for his post. The step

taken is one which will he watched with interest throughout the world and much depends in this country on its success. MISGIVINGS ABOUT SOCIALISM , ; Writing in Reynold's- Illustrated. News, Herbert - Wood says':' “My misgivings about Socialism arise when I consider what seems to me to be the unsocial attitudes of many if not most advocates of Socialism. The greatest hindrance to the advance of socialism lies in the ranks of the socialists themselves. They constantly treat as mat-* tors of expediency what should be .mutters of principle—for example, respect for human life, and I wou 1 1 say, compensation for the transfer of property from private to public owner ship. As constantly they ireat as matters of principle what should be mutters of expediency—for example, the extension of public ownership and control, or tho abolition of profitmaking Socialism divorced from magnaminity, and the spirit of co-opera-tion, socialism without fuitn in reason and good will, is simply not socialism. That is why socialist parties have so often proved the death of socialism. My misgivings about socialism arise from the fact that socialist paUisans do not realise what socialism means.”