FACING THE CRISIS

Wanganui Chronicle, Volume 74, Issue 109, 11 May 1931, Page 7

FACING THE CRISIS

GREAT EFFORT NEEDED LEADING FARMER’S REVIEW CAUSE OF OUR TROUBLE ■ i PALMERSTON NORTH, May 9. U c arc facing a very serious eco■loune crisis which calls lor the utmost effort on the part of everybody to remedy,” declared Mr K. W. Dalrymple, president of the Wellington centra provincial executive of tho New /.calami farmers’ Union, at the annual meeting of the executive at Palmerston North yesterday. “Largo sums, representing the savings ol small investors, have been placed m farm lands, in house properties, and the existing conditions have strained the resources of those who have to find the interest,” « a i,| Mr Dnlrymple. Legislation has been passed to assist tiro mortgagor, but it should bo remembered that the mortgagee is not alwavs in the position of being able to wait, n 1S < as these that 1 refer I ’ 0 , , !. r ' lfll “«lrics cannot be rectified oy palliatives. ‘‘ Recourse to emergency measures ften results in the proeuetlon of mere pal natives, which are seldom useful in making sound adjustments. There is wH ? n ° "7 , t 0 escape thc sit “a‘ien in which we find ourselves, and it is well to remember that no measure of confiscation, however disguised, will remove he burden. It may be decided tu alter the incidence of tho hurdcu from ono set of shoulders to another. Anv nroposal of thc kind must have very careful and earnest consideration. If a really sound and equitable system of taxation could bo devised, each taxable untt would contribute to thc common fund raised for the purpose of tho Government an amount which would boar. rived at after due allowance had been made for his services to tho communto pay - Taxation must be based on ability to pay and it must be equitable in its incidence

and reasonably continuous in its imposition, and such a method should not be difficult to draft if the duty was entrusted to those whoso training has fitted them for the work. Increase Production “The most important task, to my mind, is t 0 increase tho national product, and that without altogether sacriticing leisure and the pleasures of life. Wo must obtain a larger product if svo are to have more to divide. Restrictions in output, whether produced oy act of thc Legislature, tho will of the worker, or thc hindrance of a tariff, wi l fail to effect this. No short cuts TVIII enable us to attain our goal. We must get down to real costs and to get to know the real cost of what’ we buy, it is necessary to have, abolished all artificial prices. Statutory prices and statutory hours, according to tho well-known English economist, si» Hugh Bell, offer no solution to our problems. There is no royal road to a solution working under artificial conditions. ” Air Dalrymple said he thought the country’s troubles could be largcl.i traced to the operation of the Indus trial Conciliation and Arbitration Act and to the policy of according secondary and, in cases, primary industries, tariff protection. “Both legislative measures have had tho effect of unduly raising the costs of commodities to tho consumer,” said Air Dalrymple. “The I.C. and A. Act has undoubtedly improved working conditions; it cannot be denied that it has boon responsible for a great amount of good, but, paradoxical as it may appear, that good nas produced much that is bad. Tho practice of fixing wages on an index number based on certain groups of retail prices is unsound. A system of machine-made, wages, placing the poor worker on a level with thc good worker, destroys tho hope of increasing real wages as prosperity increases, and in times of crisis such as thc present, concentrates tho burden, through unemployment, upon the minority least able to bear it. Wo cannot ignore tho economic view any longer. Cost of Protection “Our secondary industries are unable to face world competition to-day Unless they can reduce costs. Thev operate to-day under thc shelter of protective tariffs to produce goods for internal consumption only. They could not survive the intensity of international competition without that shelter, which is achieved at the cost of every one of us. Protection was granted on tho understanding that it would bo subject to review; it was granted to allow those industries to got on to their feet. e have not noticed any investigation as yet to find if this has come about. Meanwhile, the consumer is paying not only the original cost of thc article manufactured, but tho cost of protection and the extra costs brought about, by that protection.” Free From Party Politics “Very fortunately we are not involved in any political issue,” continued Mr Dalrymple. “In the past tho union, as a whole, has been able to steer clear of party nolitics despite the baits held out by all parties. The result of this has been to retain tho confidence of members of tho union. Wo are the largo? ‘ organisation destitute of party political obligations Tho existing political tension demonstrates tho necessity tor u<, ns an organisation. to stand clear of all party polities. . . tho future it is difficult to see clearly hnw things n ill adjust themselves. Wo must keen n close watch, upon tho proposals which will be advanced for tho adjustment of our economic. position. Wo cannot sit bark and rolv altogether upon politicians for tho efficient handling of tho problems. Wo must got behind our union and give it nil the sunnort that -ies within our power to enable tho producers’ position, in relation to tho prosperity of the Dominion, to be fully appreciated. Our ease is paramount. Tho past has not. been an altogether bright on? for tho primary producer—lot us hope that out of this crisis their will arise a policy of adjustment in which the efforts of each will bo more guided by tho common welfare than by tho selfish desire for the advantage of tho Individual.”