WORRIED SETTLERS

Waikato Times, Volume 113, Issue 18875, 20 February 1933, Page 9

WORRIED SETTLERS

DERATING DEMANDED. GATHERING AT GORDONTON.

CURRENCY INQUIRY URGED. Derating and currency reform were the principal matters discussed at a meeting of about 40 settlers and rat payers held in the Gordonton Hall on Saturday evening. Mr W. Riddell presided. „ „ The convener, Mr R. G. Young, a member of the Taupiri Drainage and River Board, explained that the meeting had been called as ft sequel to the recent conference in Hamilton on derating which he regarded purely as a lever to compel the Government to hold a full and open enquiry into the monetary system of the country. The latter was a perfectly reasonable request yet the Government had promised nothing definite. One prominent member of the Cabinet had said such an inquiry would bo “too dangerous/’ Would it be dangerous to the Government or the banks? It could hardly be dangerous to the ordinary citizen. "I blush with shame when I see meetings of farmers commenting the Government for raising the exchange rate,” said Mr Young. “Thank goodness we in Gordonton have not yet done so. 'I feel sure there are some here who realise that the extra pennies we may receive will be useless while the present monetary system remains. People were prosecuted for starving animals yet the present system allowed women and children to starve. Mr Young asked what the present demand of the British Government to restrict exports to the British market would mean. All Mr Coates promised was "to watch the matter. For three years the Government had been playing with sand and ignoring

the real issues. Index Price Level. The popular idea of derating was that the mohey taken off the land would be placed on benzine. He was opposed to over-taxing benzine, which was a necessity for production, and had evolved a scheme for finding the money. Mr Young said he would firstly establish a State bank controlled by the people. He would then introduce a scheme fixing an index price level based on the export prices over the period 1914-1928. This would Involve pegging the exchange at a high rate as the prices for these commodities on a free market at present were considerably lower than an average taken of the prices realised during the 1914-28 period. Tariffs would have to be drastically reduced and those on many of the • essentials of life abolished altogether, as the high exchange rate would itself be a tariff. Thus the secondary industries would not suffer. There would be no talk of repudiation of interest as it would have first call on the public funds.

“Passive Resistance.” Referring to the. recent Hamilton conference on derating, Mr Young said it was .hoped,. Unit by. the., ratepayers refusing to pay' rates the 'county councils would be forced to bring pressure to bear on the Government for ah inquiry into the monetary system. He suggested that farmers' should adopt a policy of passive resistance which had been very successful in England and America. He commended the scheme by which all farmers in the district decided to bid only small sums for cattle and boycotted any high bidders. In six counties in England it was impossible for the authorities to collect tithes owing to this form of resistance. Whole-hearted co-operation was necessary; a few dissentients could soon be settled. ■Mr T. H. Henderson, a member of the Waikato County Council, said the council had instructed its solicitors to give ratepayers time to pay their rates! It had never attempted to press ratepayers unduly. However, the council had £IO,OOO rates outstanding. If farmers offered to pay even a small proportion of rates, they received consideration. Mr Henderson considered Mr Young’s scheme was childish and would lead to revolution and civil war. If the bulk of ratepayers in his riding held the views of Mr Young he would resign immediately from the council. Mr W. Kane supported the remarks of Mr Henderson and considered his counsel should be accepted. It had to be remembered that the money for taxation had to come from somewhere. He believed many farmers did not know what derating really meant. People should step warily before surrendering their voluntary county councillors for what might be control by vested Interests or distant commissions. 'lf there was to be derating let it be by constitutional, common-sense and British methods.

An Unjust System. Mr Young pointed out that the conference at Hamilton had agreed that •the present rating system was unjust. At present the settlers were paying rates to the banks. The banks advanced credit on the farmer’s assets and charged 6 per cent for it If occupiers of Crown lands defaulted the Government repudiated, hut if the county settlers defaulted the amount was loaded on to other settlers to pay interest to the hank. Mr Riddell said the present civilisation was founded on a faulty monetary system. Everywhere the Government was repudiating its contracts and giving individuals an opportunity to protest. When Mr Kane moved a resolution urging the Waikato County Council to support derating, Mr Henderson pointed out that many times the council had moved in that direction and urged the Government to introduce derating. Ml the Government had promised was consideration. He staled that the Government had Immense obstacles in face and should be not unduly harassed. Resolutions Carried.

Mr Kano's' resolution was carried unanimously as follows; “l’liat this mooting requests Mr Henderson to prevail on Ins colleagues on the County Council to bring about the derating of farm lands.” A resolution was also carried urging the Waikato County Council to ask the Government to enquire into the present monetary system and any practical alternatives immediately. Mr Speedy impressed on Mr Henderson that ihc ratepayers were not antagonistic io the county councillors arid What they had done in the past, All Hie ratepayers were searching for was a solution to the economic conditions. A vote of thanks and confidence in Mr Henderson as riding memhei was carried by acclamation. Mr Young was also made the subject ul a hearty vote of thanks.