CLOSING THE GAP

Waikato Times, Volume 121, Issue 20246, 15 July 1937, Page 10

CLOSING THE GAP

COSTS AND PRICES. FARMERS' UNION OPINION. GUARD AGAINST INFLATION. (By Telegraph.—Press Association.) WELLINGTON, Thursday. Methods of closing the gap between farmers’ costs and prices were discussed by the Farmers’ Union conference this morning resulting in the following composite motion from various remits being carried practically unanimously : “ That while the Farmers’ Union policy is still that the soundest method of closing the gap between farmers’ prices and costs is by a reduction of costs we insist on its complete closing by a reduction of costs or by an increase in prices. Such adjustment must (a) enable farmers to pay competitive rates for wages; (b) allow them reasonable interest on capital invested in their farms and stock; (c) enable them to meet increased costs imposed by legislation, including tariffs; and (d) allow them a .remuneration commensurate with the service they render and with that obtained by other members of the community who render equal service.” U was urged that compensated ’ prices are not lo be brought about by inflation, meaning by inflation an increase in the general price level due to an increase in the amount of money put into circulation.