OUR RESOURCES

Te Aroha News, Volume XLI, Issue 6603, 23 May 1925, Page 5

OUR RESOURCES

I PRACTICAL LEADERS NEEDED PRIMARY PRODUCTION FIRST JBv Lawrence Johnstone.—Not copyr right.) Never in the history of this Dominion has there been such urgent need for practical men to handle the affairs of this country. It seems to me that, having lost “the man at the helm,” the time is opportune for “taking stock” and reviewing the business 'of running this country, with a view to putting it on a sound basis; and also to prepare the way for the future development of our great resources without which we cannot hope to be able to meet our enormous financial obligations. Great stress has been laid on making our railways, etc., pay interest on cost, and where economies can be made in overhead charges, or expenses, without impairing public utilities, that is a distinct gain. But, on the other hand, where the cost to the public has to be much increased, such as in fares and freights on railways, I have grave doubts as to the wisdom or efficacy. The main object should be to increase production along the most remunerative lines, i.e.j increase the turnover of our most profitable business, whether of handling or production. The greater the volume and value of the wealth we can economically extract from Mother Earth the more prosperous we shall be, and the better able we shall be to meet our private and national obligations. Since January 2nd, of this year, I have spent the whole of the time in the Thames Valley, the Bay of Plenty, Rotorua and Lower Waikato districts. Auckland province has recently been congratulating itself on the wonderful increase in dairy products, and New Zealand generally points with justifiable pride to the great excess of exports over imports for the last financial year. -Had the position been reversed then New Zealand would have been on a somewhat similar footing to our great sister Dominion, Canada, who had a £30,000,000 deficit on interest alone for the same period. Believe me, a modern State is a big business, and requires practical, brainy men to make it pay, without crushing taxation. Why are the people leavingilreland at the rate of 500 to 600 a week? It is one of the finest farming countries in the world — infinitely richer in soil than Denmark. But Ireland has been playing at expensive politics until the taxation ex-

ceeds the return from the land, while Denmark has plodded on in the spirit 4f mutual helpfulness and hearty coloration and has won success. *-■ I have recently spent a few days in the Mataroa Valley, near Waihi, where there is quite a little colony of Danish settlers recently arrived (1922) from Denmark: They all knuite frankly agree that this is a niuch finer country than Denmark from a farmer’s point of view, and that the opportunities are much greater if the same encouragement and facilities are given by the State as in Denmark. They point out that whereas the Government of New Zealand has only granted financial assistance equal to less than £1 per acre on the average (it is much less than £1) of land sold, .in Denmark the Farmers’ Co-operative Banks have now current over £l2 per acre at a maximum interest of 4£ per cent. You will please note here that the difference in interest as against 61 per cent, would pay off every debt in New Zealand in 20 years, viz., 2 per cent. What about those Yvho are paying 7 to 9 per cent? Remeber, too, that our public debt of £162 per head is the highest in the world to-day. This (the financial aspect) is a much more important phase of the problem of development than is generally admitted. Through all the districts which I visited there are great areas of good second-class land, amounting, in the aggregate, to hundreds of thousands of acres, of

which 75 per cent, is practically uncultivated. There is, however, enough cultivation in every locality to prove the immense latent wealth, and to guarantee returns which I believe will compare more than favourably with the net returns on the higher priced lands of the Dominion. Of the once-despised Waihi Plains and the surrounding district I hold the absolute proof in official returns. Regarding development schemes I noticed a few weeks back that Great Britain had agreed to lend to the Australian States £20,000,000 at the low rate of 2 per cent, for five years and 2h per cent, for the next five years, and thereafter at 4i per cent. The only conditions were that all imports required should be purchased in and that British immigrants should have the preference —two perfectly fair and just conditions, which I hope did not even need to be named to be acted upon. If required a further £14,000,000 was to be made available to the Australian States. Nearly two years ago I drew attention to a great Empire development scheme which originated from, and was supported by, the leading financiers of Great Britain. In this scheme it was proposed to issue, over a number of years (ten, I think) one thousand million sterling in inconvertible notes to assist in the more rapid development of the overseas colonies. This amount was to be lent out, in inconvertible notes, as. legal tender, at a nominal rate of interest for a number of years, and was to be accepted in payment of and in payment of debts due miy the colonies to Britain either of a or public nature. It was not intended (as foolishly suggested in New Zealand at the time) as charity, but was based on the considered judgment of leading financiers and commercial men that this would give such an impetus to production and industry that, as Churchill put it, “Within five years

there would be no unemployment and the British Empire would be self-sup-porting, and immune from the vagaries of foreign currencies, etc.” You will find the report of the above in the splendid “Year Book,” published by “The Eagle, Star and British, Dominions Insurance Co.” for 1922.

Why New Zealand did not take advantage of the offer the same as Australia has now done is beyond my comprehension; and surely a scheme like this would pay Great Britain better than doling out 75 to 100 million sterling a year in unemployment doles. Indeed under such a scheme it would be our first duty to bring as many of our own people from Great Britain as we could find opportunities for in the development of this country. Whether morally justifiable or not, it must be remembered that interest on money is a tax on industry, commerce and production, and so, as of all other evils we should choose the lesser—in this case the lesser rate of interest.

Recently I read in the Wellington Press editorial that “Old shibboleths must go,” but regret that the advice had only a far-away significance. We have sown the wind of political cant and humbug, and we must reap the whirlwind of retribution before we can honestly join together to work for the good of all. , Our main source of wealth being the products from the land, surely it must be of the greatest national importance that the farming industry, every other industry in this Dominion depends, should be placed on equal terms with that prevailing in competing countries such as Denmark, etc., regarding finance and marketing facilities. It not, why not?