FARMERS’ AFFAIRS

Waikato Independent, Volume XXXV, Issue 3292, 9 April 1935, Page 5

FARMERS’ AFFAIRS

PROBLEMS OF PAST YEAR REVIEW BY MR S. N. ZIMAN .Reviewing the past yoar at the annual meeting of the Waikato sub-pro-vincial executive of the Farmers' Union, the president, Mr S. N. Ziman, said another 12 months had passed without any sign of a lightening ot the world depression. In Britain conditions seemed to improve somewhat owing to the stimulating, .effect of tlie adoption of a system of protection.; The' effect of this stimulant' was now wearing off. and at the present time' there appeared to be no further progress towards a recovery in Britain. The rest of the world had nb ishare in th# temporary improvement and set-back, and any faint gleams of hope are now -entirely obscured by it he and, ominous clouds of threatening ware-fare.. In New Zealand, in spite of a certain mysterious activity in retail trade, and in certain industries, which had' no ■justification in the general condition of the Dominion, there were no signs of a permanent improvement. The prosperity of the. exporting primary producer of the Dominion determined the condition of the whole of the people, and in spite of fair, prices forlUmb and pork, in marked contrast to-the pi ices of other produce, his condition had not improved during the year. , The Quota Menace The outlook was most uncertain in view of the threatening of impending restrictions on the admission ' of New Zealand produce to its only, worthwhile market, in Britain. In spite of all protests the long drawn out negotiations had been conducted in secret, and the whole matter was "surrounded with doubt and obscurity. But several points were clear. Those in power in Britain to-day were determined to take heroic measures to rehabilitate and foster agriculture in Britain. The Government of Now Zealand had chosen to enter into a diplomatic contest, with Britain, in spite of the unsatisfactory and unfavourable position the Dominioin occupied. For during the last 40 years the Dominion had deliberately followed the policy of protecting its own secondary industries against those >K]Bt'itnm. In''Hia belated half-hearted action taken inrkr matter since the. Ottawa Conference, the Dominion had -shown that it was determined to continue this policy, and to interpret with this bias tli o agreement with Britain, rather than attempt to give effect to this agreement in the spirit in which it was conceived. Removal of Restrictioi'ns^

There was definite evidence that a real otter of freer trade with Britain would be so welcomed as to remove the threat of restrictions against New Zealand produce now being discussed bv the British Govcrment. The unjust, foolish and futile restrictions imposed as a gesture on the export of boneless veal and beef by the New Zealand Government had resulted simply in depriving dairy farmers of portion of their income to divide it between speculators and Australian fanners. There could be little hope of a satisfactory agreement being concluded for the freer entry of Now Zealand produce into Britain as long as New Zealand deliberately impeded the entry of British goods into New Zealand in the interests of her own manufacturers. In internal affairs the principal matter of interest to farmers was the legislation which had been enacted to deal with the position of the farming industry. The difficulties of the posh, tion had been increased by the delay in dealing with it in the hope that something would turn up to lendei <ic tion unnecessary. “I do not propose to traverse in detail the action taken as this has been done in the spirit of constructive criticism, by the Farmers’ Union as it was enacted, and will be further discussed during the conference,” added 'Mr Ziman. “I merely refer to several of the main features.” Almost complete control over the production as well as the marketing of primary produce, including the poser of taxing without limit, had been vested in a supreme nominated council of four, acting through various control boards. No adequate reasons had been adduced for the autocratic regimentation of industry, which on the whole could compare in efficiency with any industry in the Dominion, or in fact in the whole world, and the principle of taxation without representation was repugnant to the British peoples. Agricultural Finance The legislation dealing with the finance of the farmer had been subject to detailed criticism dealing with its various provisions. It was, however, based on principles, not only difficult to apply, but dangerous, and even subversive of the economic structure

of the State. The idea of sanctity of contract, in'spirit and in letter was* discarded. 4

The difficulties faced by the Domim ion, including all classes of its arose solely out of the difficulties o£ the exploring primary producers, and the farmers’ troubles were due to fall in price received for their pttJc dace.. It was important to remember that the’farmer paid, and was paid ut New Zealand, currency. The fall i* prices had. caused farmers' costs to et* eeed returns. The possible remedied were either to reduce costs until they* arc less than the returns, or to raise returns until they exceed costs, or pee' haps a combination of both, all measo# ed in terms of New Zealand currency The first method, lovering cost* below the present low level of return*? must entail the reduction, of mortgages, capital- values, wages, etc* in fact, all the contractual liabilities of the farmer. To be successful it must involve interference with every kind of economic relationship, and lead inevh tably to the renuciation of practically every kind of contract. The process of reduction was to becarried out in the hope that costs would fall faste* than returns. The process was so intricate and complicated that it wat hardly a practical proposition. Even if carried out in the most impartial and efficient manner possible, the pro* cess of readjustment must cause very considerable hardship and injustice tn various classes of the community and probably cause widespread - distress The legislation was an attempt to adopt this alternative method of meet* mg the situation. Moreover, it was be' ing applied in a halting and piece-meal fashion in the hope of preserving intact the financial institutions and the manufacturing industries, and could not but be a source of injustice and fail to effect its purpose. Raising Farmers’ Returns The second alternative, namely,, thorn ising of the farmers' returns in term? of. New Zealand money was both practicable and free from the objection*and difficulties of the first. It could bo done by the issue of the necessary ere dits, bearing no interest but secured outlie whole of the resources of the Do* minion, to enable payable prices hr New Zealand money, to be paid. Tint credits so issued were to be repaid when the overseas price, reduced to terms of New Zealand currency, rostf above the fixed price paid. A eonsidf' erable reduction could be made in th* fixed price required if certain necessaryand desirable reforms were instituted,. These included the freeing of farm lands from loading rates by the adoption of the principle of the user paying for the roads lie uses, the removal of the tariff on necessities manufactured in Britain, a more equitable incidence of hospital rating, etc. This indicated the general lines on whic-li the Farmers' Union would seek a remedy and its objection in principle to the remedies attempted in the re/ent legislation. It was however, necessary to state again that though the remedies suggested were -applied through tha farming community, they were devised as the only way of assisting the wIioU of the people both in town and country, whose prosperity depended entirely oil the prosperity of the farmer. Advance to Prosperity “lu conclusion, I would like to issuA a warning against the natural tendency in bad times of striving merely to struggle back to the condition of soma previous time loss difficult than tha present,” concluded Mr Ziman. “If should be our object to use the exper. ienec of our present troubles to mak4 our beautiful country more prosperous or rather bettor and happier than it has ever been.”