OUR ECONOMIC POSITION

Taranaki Daily News, 20 December 1932, Page 7

OUR ECONOMIC POSITION

TROUBLES THAT ASSAIL US

THE TRUE WAY OUT,

POSITION QF THE FARMER.

(By

E. Maxwell.)

When it seems that our economic and financial problems are too much for our legislators, the economists and all the best ability in the country, what extreme temerity it is for a mere farmer to venture into the arena! But for all that and seeing that we are told that the country is fast appruaching' disastar=and it ig undoubtedly SQ=-a farmer as ft citizen fiareg to ventui© ©fi sgm© remarks and suggestions. So much has been said lately about the condition of farmers and the bearing that, the high, nominal values of land -have on that condition that in thought and. discussion all sense of proportion seems to have been lost, and with many, there seems to have developed a sort of obsession that the surest means towards righting the Dominion’? troubles i.§ tg, relieve the farmers of their financial burdeng. True, the farmers, the primary Producers, are having a very bad time indeed. Some are just paying their way; thogg . with small holding?,, pot at all, ft? very little burdened, and who dp pet empfoy labour to any extent, Qth©r§ sra carrying on fairly contentedly because they have been industrious and prudent, and have in good times provided for- the “rainy day.” Many are in desperate straits, in some cases doubtless through pure misfortune, but in far the greater number ef cases through their own fault in various ways, such as gver-optmusm, imagining that bopm prices would always hold"; lack of foresight, and—to be quite plain—reckless extravagance. In all these things they have probably been rm better or worse than. the bulk of the community. ' A . . . Anyway, while the farmer? ©re m fair case, sad case and shattered case does ngt exactly the same apply, speaking generally, to the whole Of the business and other operations of the community" Of the professional men, pf the traders and other? same hav© beep wise, and have provided opt of the day© gf plenty fpr the day? of poverty, and are so able to, keep going without strain. Those who have not ©r© wondering whether they can out-weather th© storm ©r npt, whil© others are sure their days are numbered. DEEP-SEATED TROUBLES.

The troubles are deep-seated and* Do-minion-wide, irrespective ef class or occupation, and the real troubles er thejr pauses are only to a small degree associated with the troubles that are world; wide' at present, though these latter troubles have been th@ cause of hastening the climax of eur internal rottipess. Now, there has. been, suggested a remedy, that of. relieving the -fanners, with encumbered farms, of their just debts. Why just the farmers? Why- not all in other businesses so situated? ; The answer that seems to be inferred is thatas |5 per cent, of the money that comes into thig country to from primary pro* duets, and that consequently • the whole, of the rest of the community is dependent on the maintenance of such, aqfi that the bolstering up of the weak so engaged will save the ' Dominion. Undoubtedly it to imperative, towards the Dominion ultimately regatotog solvency, that the primary-industries must be maintained and developed, but will the bolstering up of the weak tend to strengthen the industry? It is the prim-, ary industries with which we as citizens are concerned, in this case, and not the individuals, . '. Our good and fair class lands are limited, -and toe country requires, for success, toe best farmers ..it tan get. The truth may net be palatable but the faets are toat yzhile many gpod farmers are in trouble toe greater number that are weak financially' are weak farmers, those who have lacked judgment, er industry or ability or who have beep oyerextravagant. Of course, there grp manyexceptions; there always,arg* . The same applies t° such as are- engaged to otoer businesses,; AUeviatioh/is; not a cure, and to this case, woqld-.iikely, increase the dtoease. Anyway, it is pet the individuals but the industries and the Dominion’s welfare that must .be studied, and robbing Peter to pay Paul get? nowhere towards remedying toe economic and financial ills of toe Dominion. Beth Peter and Paul are mem* berg pf the state, and in this case Peter who has from the years of Plenty confor times sjs these is far the most valuable member of the State, .for without toe Peters there would be n° pne to tax. The Dominion unfortunately is uver-run with Pauls disguised under various names, and one would be sorry to see fermem join these ranks. LIVING BEYQNP MEANS.

it was stated earlier that only to-a small degree were our real troubles , associated with those that are world-wide. There is a distinct association to so far as the time of toe crises of _ our affairs to eoncerped, but not otherwise. Our main troubles are dgep-seateci and self-gpgen-derefl, and lead to certain disaster, overlong delayed by high prices obtained for pur products and by continuous lavish borrowing now brought tp a head by reversal. For many years toe State, local governing bodies, and the community generally have been living far beyond, and m many cases iy many times over, their means- This has only been possible by means of lavish borrowing accompanied by bppm prices, and has ted to the raising ef the standard Of living very far beyond what ,is possible to maintain, even jn thto highly favoured country,, for toe standard to altogether far beyond what its wealth arid earning even to good time? could possibly warrant, We have all—State, local bodies and the whole community—been wallowing to an orgy pf luxury extravagance. This applies to all classes, apd unfler these conditions luxury and pleasure, and not hopest work, have become the main objects to life. Poor, reluctant service of short flours at the highest rates that could he extorted has become the recognised System* - To restete-95 per cent, or more of toe means that come into the country to from primary products that have to compete to toe world’s market where all labour, costs rule very, greatly below what are' here. At boom prices, there were to each division, margins or profit, some substantial* At toe present prices saddled with costs on boom bases , there are losses in all branches,, and-to practically ..every case. Standards of work and remuneration that to every direction were pet during time? of.: boom prices and lavish borrowing—timgs when prices for instance, for primary products were from twice to, even to some cases, such as hides, ten times, what they are now, are still demanded apd have to be borne, The position to an absolutely impossible pne. to continue, and tinkering vzito one of the effects—and not the root causes— Will only make matters worse. The one and only remedy is to absolutely free all industry from ■ its present shackles, and give unhampered liberty to th® ordinary laws of supply and demand affecting everything, including,labtjur. Deliberate- legtol&tion, and toyqugh it the Arbitration Cauris end labour ganisgtions, have arbitrarily, toiled gnd maintained an impossible .standard of cost of service, and so raised toe,costs m

all industries, and, as a necessary consequence, the cost of living proportion- ; . All local industrteg, pperatioqs, and .. & re dependent di- ec tly .or in«* direetly pp the continuance* of primary . production, apd mofit toes© can, through the effects pf protection, adjust . their prices more'or JeSs? according to easts, but the primary industries, being . subject to the wprid’a market price are helpless to make any adjustment, are on. the road to .being destreyed by toe, ex? y .- tQriionate costs. No maketotft . tjon can have the industry. How- futjie is to suppose that it is possible to con- ■ - tinue to pay gpsts a °£ fpr producing that which realises 5s to l °lf toe ordinary law? of supply and de* • mand were allowed to npsmte unhamr pgred easts to primary production and to' other industries and operations would pome flown, and costs of living also, afi - on a parity with the true value of fli? resultant products- ’ in. toe-.dairytog industry 501116 .. 4 that labour costs begin and end with the-actual post oS employes pn toe fam- ? Such is often the least cost ana th? most honestly, earned- HW boats,, to which labour’s share is probably ninetenths, originate qff toe but epter into everything connected with the farming operations and its products. Take farm implements, plant, tools, .- -z j etc,,; far • instance,. .they, jto* about double what they should do and what ■ they , used to, and the excess costs of these (due to labour mostly) alone ,qn many farffis would equal or exceed Ute amount that has to be paid m interest .. ■ charges. And so it is rW every direction and every stage to top handling o£ toe prpdu?* to toe port and onward. Local itoes are probably What they should be owing to toe unduly high cost of works. . Jf th© laws of supply and demand * war© allowed to operate,-not only would posts come down until they conformed to rogl slid with the lowering P? costs the cost of living but avenue® of ippregsed : employment would yapidly open up. / - ■ I ——, *'S’*