The Timaru Herald. SATURDAY, MARCH 8, 1930. LEARNING FROM THE PAST

Timaru Herald, Volume CXXV, Issue 18512, 8 March 1930, Page 8

The Timaru Herald. SATURDAY, MARCH 8, 1930. LEARNING FROM THE PAST

Tf the swing of the economic pendulum could lie in-evented from affecting the returns realised by the producer in marketing the fruits of his land, it would not be'a difficult matter to solve all the problems of the wheat-grower. Unhappily, as it was pointed out at the largelyattended meeting of growers held yesterday, the prosperity of the man on the laud is largely governed by influences over which lie has no control. The difficult marketing conditions which have struck fear into the hearts of many growers, are not peculiar to New Zealand. Every wheatgrowing country in the world is facing abnormal economic conditions. Moreover, the dissatisfaction felt by the man on the land is not his monopoly; indeed, we think it can be said that in facing the future there is a. general uneasiness in all spheres of town and country trading activities. In the United States, the Government has had to assist the wheatgrowers by providing substantial financial hacking, while the outlook confronting Australian and Canadian growers is most unpleasant. The average producer does not concern himself, however. with the difficulties existing in other countries, but he favours the most direct and -sometimes unsound methods of dealing with his 'problems. It has been repeatedly pointed out by commentators that under any voluntary pooling scheme there will always be a large percentage of farmers who will prefer to market their grain individually, either because of the necessity or desire to realise full cash proceeds immediately, or because of the speculative hope of being able to sell at the peak price. The pool farmer on the other hand knows that it is the weighted average price of the year which he will receive. Obviously this must necessarily be less than the cash price at certain dates. Furthermore, the non-pool grower stands to benefit—without being subject to pool deductions or deferred payments—from whatever stabilising effort the action of the pool may be able to exert on open market prices. The real danger in any pooling organisation lies not altogether in the outside opposition of the private grain trade, but in the possibilities of internal rupture over the question of compulsory pooling. The point was raised at yesterday's meeting of wheat growers, and the issue has been repeatedly fought in Canada. In all countries, however, the strength of the pool has lain in the solidarity of its membership, in its combination of centralised operations with the fullest democratic control, and in the persistence and thoroughness of its co-operative educational work. It is just as well to realise that the considered judgment of the Canadians supports the view that quite apart from the confiscatory aspect of the demand for compulsion in relation to the legitimate investments of the regular grain trade, the compulsory inclusion in pool participation of the non-willing minority of farmers, would almost certainly bring about the disintegration of any pool. Furthermore, compulsory legislation would necessarily involve government participation in marketing control as is found to be the case wherever such laws do exist. Under existing conditions the pool method invariably prevails where members are loyal, by virtue of its competitive merits. Under a compulsory pool, the latter alone would be answerable for complaints from every dissatisfied grower. It is interesting to note in this connection that the . Koyal Grain Inquiry Commission of Saskatchewan in its final report presented to the Canadian legislature last September, gave expression to the following conclusion, on the question of compulsory pooling: “In our opinion, after giving the matter our most Serious consideration, the scheme. suggested is beset with difficulties and dangers, and one which we cannot recommend. We think it is not the time when the Pool member can afford to be impatient, but that, on the contrary, ho has much reason for the exercise of patience and courage.” Canadian Pool leaders themselves clearly perceive the dangers of the policy of legislative compulsion, and at a meeting of the Saskatchewan Pool last year, after a debate extending over a day and a half, the compulsory pool proposal was rejected by a substantial majority. The problem confronting the New Zealand wheat grower is the problem of everyone engaged iu fhe same branch of the primary industry in every country, and it behoves the producer to think for himself and let his actions be determined by what he has learned from the past experiences of the branch of the industry with which he is associated. „