AID FOR FARMERS.

Waikato Times, Volume 113, Issue 18851, 23 January 1933, Page 7

AID FOR FARMERS.

WELCOMED BY PRODUCERS

INTEREST OBLIGATIONS. HIGHER BUTTERFAT VALUES. BENEFITS OF EXCHANGE. I Special to Times.) WELLINGTON. Saturday. Farmers and others connected with various phases of primary production welcomed the announcement of an increase hi the rate of exchange. It was stated that the increase would give muGh-needed relief to the fanning community, and that this assistance would mean all the difference between a farmer carrying on and having to abandon his holding. In the oase of dairy produce it was stated there would be an advantage of from a Id to lid per pound on butterfat.. A Wellington business man in close touch with the primary producers said that the •xchange inorea6e would benefit farmers enormously. The advance In the rate meant that the prloe levels of all farm produce fixed by export prices would be raised 15 per cent. That would aotually benefit the farmer a groat deal 'v more than 15 per cent., because It was the f.o.b. prices that had raised the farm prices on the farm. Costs from farm to f.o.b. would not be increased so that the in per cent, on f.o.b. was a good deal more than 15 per cent, on the farm. Value of Produce. The farmer had not been paying his Interest, and the annual value of farm produce on to-day’s market prices was not less than £50,000,000 for export and local consumption.

An increase of 15 per cent, in exchange put up the value in New’ Zealand money of these farm products by 15 per cent. That was equal to £7,500,000. The total interest bill of the farmers of New Zealand for mortgages, overdrafts, and so foi tli was approximately £10,000,000, so that the increase was equivalent to 75 per cent, of his obligations. That just meant the difference between a farmer carrying on and failing to do so. , ~ In discussing the opposition of the cities to an increase, he said the

towns had failed to realise that If the farmers could not pay their way It would mean their own ruination, as well as that of the primary producers.

While the farmer felt first the brunt of the slump, the cities would feel still more the effect of the depression if something had not been done to secure the position of the farmer. Inccmo Tax Duties. The talk about an increase in income tax as a result ol an advance in exchange was all nonsense. Neither was the statement that it meant an extra 15 per cent, duty on imported k goods an accurate one. The increase "Win the exchange was purely an internal adjustment and had nothing to do with outside countries. England had depreciated her currency since September, 1931, by 32 per cent., but no one accused England of putting a permanent tariff of 32 per cent, against the world. He admitted that the temporary effect of the increase made it more difficult for outsiders to compete, hut it enabled New Zealand to make internal adjustments quicker. Mr T. C. Brasli, secretary of New' Zealand Dairy Produce Board, said that members of the hoard would feel verv gratified that the Government had taken steps to assist the primary producers in their present difficulties.

“The inorease,” Mr Brash added, “will moan a difference of 1d to IJd per lb of buttorfat, and at the present time that will be of groat Importance to the producers.” REMISSION OF RATES. GOVERNMENT’S INTENTIONS. REDUCED RAILWAY FREIGHTS. WELLINGTON, Sunday. In addition to assisting farmers through exchange inflation, it is believed that the Government will propose other forms of relief. One method will be a proportionale remission of rates in counties. When that measure of assistance was initiated in 1931 (lie Government applied £230,000 of highways revenue by way of a special subsidy to rural local authorities in relief of the existing burden of rates. .The result was that county ratepayers received a remission amounting to 12.1 per cent. On Ibis occasion the amount of the has not yet been announced, Tut percentages of from 121 to 23 par cent are mentioned. It is also understood that substantial reductions in railway freight charges arc being arranged to assist farmers in delivering their produce as cheaply as is feasible to exporting ports. Further it is believed that overtures made by the Government to the banks during Hie past two months will shortly result in an announcement that the overdraft rate has been reduced from 0 per cent lu 3 per cent.