GUARANTEED PRICES

Taranaki Daily News, 22 February 1935, Page 7

GUARANTEED PRICES

ATTACK UPON THE POLICY MINISTERS WARNING TO FARMERS. LAND VALUES WOULD MOUNT. THE INEVITABLE WASHING-UP. By Telegraph—Press Association. Wellington, Last Night. The Hon. J. G. Cobbe in the House of Representatives to-night said that the Mortgage Corporation Bill was a sound, common-sense measure, and at no time in the Dominion’s history was commonsense more urgently needed,than at present. He said a scheme of guaranteed prices was simply pure inflation under a new name. No farmer wanted guaranteed prices if the guarantee had nothing behind it but depreciated, depreciating and finally worthless currency. He was surprised" that Mr. Savage should allow himself to be inveigled into putting forward such a proposal as the readjustment of mortgages and land costs on a basis of guaranteed, prices, Guaranteed prices meant inflation of the wildest possible character. The effect of inflation was to raise the price of everything; consequently land prices would soar to tremendous figures. That might not be bad while inflation was in full swing, but when the inevitable washing-up period arrived and the weeping and wailing began mortgages and land buyers would find themselves with liabilities of such magnitude that they could never discharge them. Every members of the Opposition familar with currency questions knew that excessive inflation meant that real wages fell, the prices of the necessaries of life increased and the real sufferer was the worker. Mr. Cobbe said the kindest thing one could assume was that those who were advocating guaranteed prices did not really realise where their proposals were likely to end. Any serious inflating of the currency must ultimately result in marked deterioration of public honesty. He was sure the working farmer had too much common-sense to-pay any real attention to the statements of those who told him his financial troubles could be removed and his position assured by the adoption of a method that had been a ghastly failure wherever it had been adopted. . . At a later stage the Hon. S. G. Smith said a meeting of farmers at Stratford had refused to listen to a man advocating ’ guaranteed prices.