The Daily News. SATURDAY, JULY 29. FARMERS AND THE WAR.

Taranaki Daily News, 29 July 1916, Page 4

The Daily News. SATURDAY, JULY 29. FARMERS AND THE WAR.

As primary producers, the farmers of Now Zealand constitute an important factor in vlie part which the Empire is taking in the present war. Never in the history of Britain (both lesser and greater) have such enormous armed forces been trained and equipped for hostilities, and each unit of these millions has to be clothed and fed as well us furnished with the implements of warfare. In this matter of providing foodstuffs the Dominion is rendering vital aid far exceeding in importance the despatcli of troops. Under these circumstances, it was inevitable that the Farmers' Union Conference which met this week at Wellington should have devoted special attention to war influences on the farming community. In his; presidential address, Sir James Wil£oi( dealt with several matters affecting farmers in connection with the war. In discussing the financial conditions from a farmers' point of view, the president endeavored to do so in a judicial frame of mind, and it was only to lie expected that he would resent the cry of "Tajv the Land." He believed that war profits, when they could he fairly ascertained, were fair contributions towards the expense of the war, but lie sounded the warning that excels profits would vanish shortly after the guns of war were throttled by the hand of peace. He thought we might look forward to even heavier taxation in the future, possibly with a lowei level of-prices. He considi red that the Budget placed 011 the farmers additional taxation which tljey should not have to bear, but he recognised that the Government had had a difficult task to> master, and he trusted that whatever harvest is garnered to the Treasury would be wisely spent. He submitted to the fact that the new taxation was law and must be paid; ho turned to the land for the replenish [inent of our wealth; and he saw us in rhe future with great things accuni flisned, even before the passing of another decade. All these views emit /■ more or less truth, but*the crux oi tlii position is that, the abnormal dt'iiUld for ivool, meat, cheese and even brtter has so inflated the prices that the |- ducers have been making profits wh'rl far exceeded their most sanguine diUJi To discount this aspect of the qui*:Sir Jaines Wilson applies a similar c.ii douche to that which is customary w U the chairman of the Bank of lu". • - land in his yearly address to im .1 n holders. He conjures up visir '• times after the war, and poir.- >—• >,

largo increase of non-interest bearing deposits, the inference being that though the farmers are making large profits they are not reaping the full benefit because their surplus income is not earning equivalent profit to that obtained throng 1 1 the sale of their produce. The Government taxation proposals will to some extent utilise this surplus in the shape of a special charge on war profits, and this impost of 45 per cent., plus five per cent., is described by Sir .fames Wilson as ''conscripting wealth to a greater extent than anticipated.'' It is claimed that tiie special five per cent, tax should not have been imposed on them. A National Ministry thought otherwise, and, looked at fairly, the taxation, great as it is, cannot be held to be unreasonable in the circumstances. It has to be remembered that the present 1 rices are absolutely due to the war, and it is but right that they should be taxed to help pay for the conduct of the war. Of course, the Government made the mistake in the beginning of not taking over, as loading farming opinion suggested, the whole of the produce at a priie Lased on the average for the three previous years and transporting and marketing it itself. This would have induced among producers a feeling of security at a time when the outlook was not very cheerful, it would have enabled the Government to pay at least half the fotal cost of the war, and incidentally materially kept down the cost of living But the Government missed the opportunity, and dilydallicd so long with the question of adequate war taxation that producers, having tasted the big war profits, naturally don't take kindly to having to give up in the form of taxation half the profits. It is quite a natural disinclination, in the circumstances, but if they look at the matter dispassionately they will agree that they will not, after all, be so badly off. Sir James Wilson was 011 strong ground in dealing with the problems of the future and the necessity foi increased production to enable the problems to be solved, and the more the advice is taken to heart the better it will do for the fanners and the country generally.