THE WRITING ON THE WALL.

Taranaki Daily News, 16 January 1933, Page 2

THE WRITING ON THE WALL.

(To the Editor.) Sir, —Your article on the above subject intimates that the broad acres of the Dominion are to meet in conference through the medium of a Primary Producers’ gathering. Such a conference, being practically the first of its kind to be held in the Dominion, has material for its foundation that may build a structure head and shoulders above any similar structure in the Dominion. Public interest will centre round the deliberations of the conference. Broad acres hold the essence of prosperity, but also the opportunity for exploitation if in the speculative hand. A Dominion Producers’ Association will earn the respect of everybody if only it can solve two questions. The first is the reason for such a disparity between the selling prices of broad acres’ production and the retail price to consumers. This in spite of all agitation from innumerable other associations has never been attempted by the Government, man or individual. The second question is how to relieve productive lands, and pay interest (dead money) on mortgaged monies spent on non-produc-tive assets. The feeling between producer and consumer has been bitterly hardened by f a serpent with a poisoned fang which no Government has attempted to remove. The Government said the Arbitration Court harboured this serpent, and added fuel to the fire as between producer and consumer, but it still requires two bales of wool to pay for a suit of clothes. Newspapers with world-wide circulation offering space to the widest thought cannot induce controversy on this subject. Many are the opinions offered as a solution to assist the producer over this difficult period. Your article “Writing on the Wall” opens the gate to the widest thought as regards the welfare of primary production. How the Government paying the rates to local bodies can help the future is problematical. In other words it is asking for the abolition of Local Bodies altogether. Not that it might be a good move to show that the country can prosper under less Government Mr. Wilkinson suggests a reduction of mortgages. This idea hits at the root of one of the greatest'evils. Such a proposal, however, requires careful handling. No one to-day should be expected to pay interest for money spent and not revenue producing. The mortgages on all producing lands should be reviewed, and the producer be asked to pay interest only on that portion of his mortgage that has been spent to assist production and is to-day producing revenue. The balance should remain a live mortgage, and be repayable or interest bearing when conditions improve. That is to say every mortgage in existence to-day should be classified under two headings: (1) the amount spent on buildings, etc. (non-interest bearing); (2) the amount spent for fencing, bushfalling, grassing or assisting in general production and which to-day is earning revenue. The primary producer would, then only require to find interest on the capital or borrowed money earning revenue.

No business pianufacturer or producer can grumble at having to pay interest on capital that is earning that interest, but to-day in many cases this interest has been doubled to find' interest on capital spent and not revenue producing. The leading nations of the world are at their wits’ end to overcome paying this dead money (interest) on money spent for non-revenue purposes. If

nations find it a burden where millions bear the weight, how must our producers bear the weight of their own mortgages, Local Body mortgages, and the Government? Many acres of land pay interest through the medium of special rates to two or three Local Bodies, and our producing lands are debt ridden. The American slogan: “Any defective cog in the wheels of progress interfere with its smooth working. Get rid of it!” may easily be adopted and applied by the Dominion Producers’ Association. I am, etc., P. MORA, Whangamomona, January 13.