DECONTROL OF AGRIGULTURE.

Star (Christchurch), Issue 16449, 10 June 1921, Page 5

DECONTROL OF AGRIGULTURE.

DUE TO FINANCIAL SITUATION. By Telegraph—Press Association —Copyright Australian and N.2. Cr’-* 1 - 1 *oociation. LONDON, June 9. The decision to discontinue control of agriculture and abolish guaranteed prices and minimum wages has resulted m a political sensation. The step is duo to the tact that the Government now is thoroughly aroused to the gravity of the financial situation. It is pointed out that whereas the revenue since April 1 has decreased by £IOO,000,000 compared with last year the expenditure has only decreased J 18,000,000. Thus far the expenditure has been £223,000.000 and the revenue. £155,000,000. The State is losing £10.000,000 monthly on railways. The scrapping of the farmers’ guarantee is not a saving of current expenditure, but an avoidance of what might become an (insupportable liability in future. The: c is certain to be a storm over the violation of the definite four years’ pledge to farmers.

Other evidences oilthe economy scare at \Vhitehall are the disbandment of reservists, changes in unvmpluyment benefits, and the cutting down of State llogysing‘schgmgs. . _ ‘ . ‘_ .

The change in Agricultural policy it is estimated will save $325,000,000 next year, but. there is danger of an agricultural strike if an attempt is made to cut the wages of agricultural workers with undue haste.