AGRICULTURAL CRISIS.

Waikato Times, Volume 110, Issue 18440, 22 September 1931, Page 3

AGRICULTURAL CRISIS.

A UNIVERSAL FACT. DANQER OF PROTECTION. REACTION ON PROMULGATORS. (From a Correspondent.) GENEVA, August ii. A full and authoritative survey of the world agricultural crisis' has just been issued by the Secretariat of the League of Nations. This document is the result of conferences of agricultural experts that met in January, 1930 and 1931, and represents the views of leading agricultural authorities from 39 countries—namely, Algeria, Argentine, Australia, Belgium. Brazil, Bulgaria, Canada, Cuba, Czecho-Slovakla, Denmark, Estonia, Finland, France, Germany, Great Britain, Greece, Hungary, India, Irish Free State, Italy, Japan, Latvia, Lithuania, Mexico, Netherlands, Netherlands Indies, New' Zealand, Norway, Persia, Poland, Rumania, South Africa, Spain, Sweden, Switzerland, United States of America, Uruguay, Yugoslavia.

The Economic Committee of the League, which considered the evidence submitted by the experts, draws the following conclusions:— 1. Tlie agricultural crisis is aggravated by the general disorganisation which it has caused. This disorganisation is evidenced in certain excesses of Customs protection, in the bounties and subsidies intended to promote the export of agricultural products, and in the numerous forms of indirect protectionism. It is also evinced in the creation of artificial organisations which disturb the normal course of business, accumulate stocks in some countries and make it possible to sell at prices even lower than the already low prices brought about by the depression. The Wheat Trade. 2. The present chaotic state of the grain market is fraught with danger for the future. Negotiations are

necessary for organising the w'heit trade. This organisation should aim, not only at improving home-market conditions in each country, but also at promoting agreements with foreign countries. 3. Opinions may differ as to the possibility of taking international action. It is, however, an imperative duty to make a close study of this problem. The present position is such that most importing countries are willing, in the interests of their own agriculture, to pay higher prices for their imports of cereals. In these circumstances the exporting countries concerned should be induced to consider an agreement. The Economic Committee proposes to follow' closely the efforts to be made by the various countries in regard to the trade in cereals. 3. In general, the Economic Committee recommends that the formation of groups of agricultural proI ducers, numerous and disciplined ; enough to organise the sale of their | crops, be encouraged. Such a course wmuld be useful to farmers by enabling them to Improve their economic position. Threats by Constant Changes. 4. It would obviously be desirable, too, that Customs protection applied to agricultural products, should bo reduced as soon as an improvement in the position of the world market takes place. At times of crisis there is always a tendency to forget the fundamental importance of international exchanges. In order to realise the normal sale of products a position of relative stability should be reached by which trade would become regular and would bo no longer threatened by constant changes in international relations. 5. The Economic Committee’s attention has been directed to the proportions assumed in certain countries by the system of export bounties and subsidies for agricultural products. They entirely deprive Customs duties of their value and cause serious harm both to importing and to. exporting countries. The importance which the Economic Committee attaches to questions of commercial policy lends special interest, in its view, to the suggestions which it has received in the matter. It considers it essential that such measures and their repercussions should form the subject of a detailed and earnest investigation In all countries. Protection Ineffective. By means of bilateral treaties, they may be abolished. Moreover, international discussions and negotiations might take place to consider the possibility of taking action to avoid protective measures, which, though natural enough from a national, are dangerous from an International, point of view, and finally become Ineffeeive, while causing serious disturbance to international trade. 6. The question of discrepancy between the prices paid to the producer and the prices paid by the consumer has been examined by the Economic Committee. It would be desir-

able to have internationally comparable data and to he able to follow the results already obtained in the different countries. The question should be cleared up in all Its various aspects. 7. The difficult situation of agriculture is aggravated by the difficulties encountered by a number of agricultural countries in Europe in respect of credit. In this connection the Economic Committee is glad to note Ihc creation, under the auspices of the League of Nations, of the International Agricultural Mortgage Credit Company. International action seems to he not far from realisation in respect of long—and medium—term credits. International agricultural credit would play an important part in tlie improvement of the conditions of agricultural | production and trade and in the in- | crease of markets. It would have the most beneficial effects from a moral and psychological point of view, by restoring confidence and introducing effective international co-operation in financial matters between the countries possessing capital in abundance and those deprived of it."