IMPROVING .PRICES

Taranaki Daily News, 26 September 1933, Page 5

IMPROVING .PRICES

WARNING TO FARMERS.

NOT YET “OUT OF WOOD.”

Auckland, Sept 23.

“Although recent increases in prices for dairy produce and wool encourage a more hopeful outlook, farmers would be wise to conserve their resources, as there is really nothing definite to show that we are yet ‘out of the wood,’ ” said Mr. H. E. Worsp, chairman of directors of the Auckland Farmers’ Freezing Company, Limited, in his address to shareholders at the annual meeting yesterday.’ “With the uncertainty in the exchange and currency position, and the talk of quotas and restriction of shipments of dairy produce and meat, the future of prices Is most uncertain.”

Mr. Worsp said universal regret had been felt at the failure of the World Economic Conference to raise prices. With no understanding in sight between the nations regarding such vital matters as war debts, disarmament, tariffs and currency, it would appear that the principal hope of escape from the present economic difficulties was for the people of the British Empire to combine in an endeavour to find mutually profitable trade within the Empire.

"Britain seems to be committed to a policy of restricting food imports in order to protect the British farmer by raising prices, and it remains to be seen how far she can go without incurring the disapproval of the mass of the people,” said Mr. Worsp. "There is nothing to show that this policy has general approval. Britain is essentially a manufacturing country. A very small percentage of the population is engaged in agriculture and the remainder may object to a policy that means dearer food.

"Under the Ottawa agreement little restriction was placed on New Zealand exports, but New Zealand has been asked voluntarily to restrict dairy produce and to a lesser extent meat. This should suggest to the people of New Zealand the absolute necessity of maintaining friendly relationship with their best customer and, for some products, their only customer. We must recognise that Britain can make her own terms when the present agreement expires and the best that New Zealand can do is to try and secure large quotas by increasing her imports from Britain. Britain must expand her export trade and the extent of any quota imposed on New Zealand products will be governed by the amount of British goods imported. "The policy in New Zealand during my life time has been to increase production, and if this policy is to be reversed the consequences, L am afraid, will 12 most serious, not only to the (arming community, but also to city people. I doubt if the latter appreciate the seriousness of the position, which would mean more people flocking into the towns, more unemployment, and a lower standard of living. It is quite possible that if we cease ‘bolstering up’ secondary industries which cannot stand on their own feet and gradually reduce our protective tariffs on British goods until we bring about virtual free trade with Britain, quotas may not be applied to this Dominion.”