The Daily News FRIDAY, JANUARY 30, 1931. TO REMEDY DEPRESSION.

Taranaki Daily News, 30 January 1931, Page 6

The Daily News FRIDAY, JANUARY 30, 1931. TO REMEDY DEPRESSION.

If all the views, suggestions and proposed remedies for the financial and industrial depression that is at present obsessing a large sec-, tion of, the community were closely examined, the probability is there would be found a maximum of individual clamour and a minimum of commonalty consideration. It is perhaps natural for each of who are 'faced with a partial or total loss of income to advocate remedies designed to meet their respective circumstances, no matter what will be the repercussion on others. In meeting any national or international misfortune it is always as well for those concerned to bear in mind the principle contained in the French estimate of charity, namely, that it creates far greater misery than it alleviates. Moreover, it should also be remembered that the depression which, is affecting New Zealand arises from the far greater misfortunes from which the Old Country is suffering, and is partly being met by the farming community of the Dominion by means of increased production, more efficient business methods and a curtailment of expenditure in some directions. Unfortunately all curtailments, especially those affecting the hire of labour and purchase of commodities, aggravate the difficulties of other sections of the people who are least able to bear misfortunes. Accordingly all sorts of expedients have been (put forward as barriers to absolute poverty and destitution, and it says much for the soundness of the country to find the temporary circumstances so well met that there is no excuse for pessimism and every reason for confidence in the future. One of the signs of the times was manifested on Wednesday when the Meat Producers’ Board and the Dairy Produce Board submitted to the Prime Minister of the Dominion certain suggestions concerning the action of the Government to meet tlie present difficulties. As these two boards represent quite 90 per cent, of the farmers of the 'Dominion they claim to be in the unique position of being able to state the effects of the present economic position so far as the -farmer is

concerned. According to the statement compiled by the boards, the present position is the most serious that has confronted the present generation. While insisting that immediate and drastic steps are essential to meet the grave economic position, they assert that the high price paid for land is not the chief contributing factor affecting the farmers. That contention may be quite sound, but it does not alter the general effect of increased land values on taxation and other overhead charges, nor does it in anyway disturb the basic principle that land is only worth the value received for its produce. As a matter of fact the country has not fully recovered from the dire effects of the post-war land boom, for the consequences of which the Government for the time being cannot escape a large part of the blame. No good, however, will be done by apportioning blame for past follies. The question facing the country is how to overcome its present troubles. The boards as-, sert that “neither on the present level of values, nor on the level we can reasonably look for, is it possible for farmers to make their undertakings pay unless costs are reduced. . . These loadings of costs (by artificial means) must be removed. The items that influence costs most are interest, labour and taxation, which includes Government expenditure and public services.” Without doubt the farming community is the most important in the country and therefore should have the advantage of cheap money and due consideration in the matter- of other charges, but the farmers are not alone in this respect. The burden of high interest rates is felt everywhere, and the excessive taxation levied . upon industrial and commercial undertakings is crippling those engaged in them. Moreover, other businesses besides farming are affected by the standards of wages fixed by the Arbitration Court and the maintenance of rates for relief works that are actually beyond the capacity of the public purse. As a large borrower within the Dominion the Government exercises a powerful influence upon the rate of interest, and it is to the Government the country must look for the steps necessary to permit of the reduction of wages. It should be strengthened in its determination to economise by the advice which the farjners’ representatives have offered, for on this occasion they certainly have spoken for all sections of the community.