VOICE OF THE PEOPLE

Taranaki Daily News, 26 November 1934, Page 7

VOICE OF THE PEOPLE

VIEWS ON CURRENT TOPICS “ACERBUS” AND DAIRY REPORT* CHALLENGE TO VIEWS EXPRESSED. (To the Editor). Sir,—The letter written by “Acerbus” ( and appearing in your issue of the 21st should not be allowed to .pass Withdut criticism. '■ The assertions which gave a pretension of dealing with the Dairy Industry Commission’s report, although lengthily written, apart from a congratulatory sentence in regard to the non-financial recommendations of the commission deal wholely and solely with debentures and mortgages. “Acerbus”' is thus revealed jn. the true colours of one who is apparently sectionally interested and self-interested in the mortgage problem from the viewpoint of the financial interests. The lack of mention of the other’phases of the report is better understood, since none but the working farmer can realise exactly what effect the recommendations of the Dairy Commission Will have on the dairy industry if carried into operation. These recommendations are, with their powers of dictatorship and interference, in direct contrast to British tra* ditions of liberty and democracy .and .will only still further load with costs an industry which is already over-burdened to the point of ruination, In dealing with debentures and- mortgages “Acerbus,” in an attempt .to bolster up his argument, brings to hi? aid high-sounding words such as repudiation and confiscation, and in so doing not only giyes a gross misrepresentation of .-facts, but also repudiates the obligations of a citizen who should be prepared to participate in equality of sacrifice, along with the other sections of the commune ity. It should be borne in mind that There is such a thing as “inability to pay?’ which is a totally different state of -affairs to “repudiation.” This applies not only to the individual but to the nation .also. ' *.‘Acerbus” chooses to ignore the'•fact that in 1928 and the years previous to that, when butter-was selling- at-180s a, cwt, investors were only too willing to lend their money at the rates of 6, 8 and 10 per cent, interest per annum, not only on rural mortgages, but on town property also, and yet are disinclined to take a just rate of interest based on the price levels of primary produce today. The theory advanced by “Acerbus,” •“that when interest rates are low there is a-slackness of business,” is in practice unsound. When business is slack, the investment of money at high interest rates is but of the question. Therefore, unless money is to lie idle, it is necessary for interest rates to be reduced. Whether the Government is adopting the correct monetary policy is entirely another question, but the fact remains that nothing plays such a part in the econoiriic welfare of a nation as the rate ,of interest. High interest rates mean high rents and high costs of production, whicß .in their turn mean high cost of living, necessitating high wages if the Working community is to enjoys a decent standard of living. It would be Well for “Acerbus” and other like minded beings to realise that there are other sections of the community beside the investing class.—l am, etc., NATIONALIST. Stratford, November 24, (To the Editor). Sir,—l think that “Acerbus” has made * mistake in stating or inferring that \ repudiation mentality has developed among the people of this country, because they refuse to pay the land-gambling debts of either sharps or fiats. ■> Granted it is a pity that people have invested their money on a land boom and lost it. “Acerbui” admits that the farmers are insolvent. Had there been no investors or speculators there would have been no land-gambling or boom, not rise in exchange, no sales tax, few unemployed and no insolvent farmers. If “Acerbus” * cannot get his money or pound of flesh out Of the farmer who-is insolvent, as he says, then he wishes to make other people the Victims of his foolishness. The investors, speculators or land gamblers are the people Who fosced repudiation by over-capitalising the land. And now they would hold the people as in the ■old debtors’ prisons, wlfich cursed the land but are now long swept away as a remnant of the dark ages.—l am, etc., C. WESLEY. Opunake, November 24.