THE FARMER.

Press, Volume LXVI, Issue 20106, 9 December 1930, Page 16

THE FARMER.

TO THE *DITOB OF THB PRESSSir,—As an erstwhile farmer I have much sympathy with many of my friends in their present position. But bad as tlieir position is, they must watch themselves lest panic take them like the drowning man who always wants 10 drown his Tescuer. High wages in New Zealand are not the cause of the I'armers' troubles, but our huge indebtedness and the troubles in the outside world, together with the fact that we have gone motor mad and buy our luxuries from countries which won't trade with us, have done much to place us in the present worries. I wish to make one or two suggestions, however, which may be helpful, and which will bring immediate relief. The creation of a real central bank. Because there is no real money m the world worth talking about, sound banking is all important ia trade, trade being complicated barter. Our present banks are not equipped to handle our affairs in the manner that these desperate times demand, therefore a dominating central bank is necessary. It should have attached to it the best minds in mining, industry, science, engineering, farming, etc. It should be in a position to push funds on to industries which could absorb our unemployed. It should mobilise our £7,000,000 in gold, and ship to London. It should run the exchange to such a rate, 50 per cent, if necessary, so that the farmers would get a subsidy at the expense of importations. This in turn would so shake the factories abroad that their banking institutions would be stirred into action that would give our products a better return. Then there is the question of new inarkcts. I will deal with one alone, Russia, and give the possibilities of trade with that country. A good central bank would be in a position to handle big business such as Russia presents. My facts are from the London "Economist," which is the leading banking and trade paper in England. Owing to Russia's death rate being reduced from 30.5 pre-war to 17.4 1926-28, her population is increasing at 3} millions per annum, and was 153 millions this year. Her production has gone up as follows: — 1925. 19-'9. Pig-iron .. 2.2 5.0 million tons , 2.9 5.6 million tons (Joal . . 24.4 46 million tons Qjj . . 8.3 17.1 million tons But it is in agriculture that the biggest strides will come. They have developed the following tractor factories: Tractors per Annum. Putilov • - • - 20,000 Kharkov ■. - • 50,000 Ohelia Binsk .. 40,000 Stalingrad . . • - large output Two of tho above factories are now finished, but when all are producing Russia will turn out tractors with a power of 3,000,000 h.p. per annum. In three years' time the Russians are_ confident that they will have 240 million acres cultivated by tractors alone. Further, they plan to develop tho transVolga district, in Kazakstan, and in South-Eastern Siberia, an area of 900 million acres by mechanical power. Great Britain is buying the following 011 from Russia:— Of her Total Supplies. Motor spirit .. .. 11.0 per cent. Kerosene .. • • 30.4 per cent. Gas oil . . 13.1 per cent. Lubricating oil • • 15.2 per cent. Fuel oil - - • - 11- 8 P er cent - In 1929 Great Britain imported goods from Russia: 192 millions of roubles; exported goods to Russia: 44 millions of roubles. "U.S.A. imported goods from Russia: 38 millions of TOubles; exported goods to Russia, 187 millions of roubles. Therefore England practically paid for America's exports. With a good, live central bank we should be able to send Russia millions of pounds worth of dairy products and wool, commodities which she wants. In return we could take her oil, besides working on England's balance. I have our dried skim milk in mind when I mention dairy • products. The Russians are just the people who would force such an article into consumption as an ingredient in bread baking when the dietetic benefits are bhown. If we could get a fair price for our skim milk, New Zealand, could breathe more freely. If the Governments of the world worried about the health and fitness of their peoples, New Zealand would cash as much for Jier skim-millc as for her butter. The above are -merely one or two pointers, .which I hope will help in these difficult times.—Yours, etc., L. C. WALKER. December Bth, 1930. TO THB XDITOa or THE PRESS. Sir,—When The Press invites comment on the unemployment question I will therefore call a "spade" a spade in giving the true facts why many farmers are in an apparent insolvent position to-day. Permit me to take the farmers back to the prosperous days of New Zealand farming. In those days the average farmer was a man of logic—he thoroughly investigated a farm as a payable proposition at a safe price per acre before he invested his capital, nor did he allow himself to be influenced into making a bad purchase by speculators. In those days the farmer bought a farm to settle on, and worked it for tho benefit of himself and his family—not with the idea of soon disposing of it at a profit to the next bad buyer who came along. The present condition has been brought about solely by the farmers themselves (freeholders excepted) who developed into speculators, etc., thereby causing a land boom. (Yes, I know all about the absurd prices paid by the Government, but that ia no excuse for the farmers who are supposed to be experienced in tho value of land.) The wise farmer who made his money off his well-managed farm which lie still holds is not having a prosperous time at present, but he is solvent in every sense of the word! But the bad buyer—and the speculator—are on their farms to-day because the moneylender (who is also a speculator) cannot induce another to take over the bad bargain the present occupiers made. It does not matter how much things improve in the future many of the present occupiers of farms can never recover, and the moneylender's security is not now in those farms. Furthermore the moneylenders know the same price and security of these farms will never be in existence again. But, assisted by a Government (which is afraid of losing votes), they are keeping these preposterous prices of land, and rates of interest, etc., in existence on paper.

I take it that even the most uneducated person in New Zealand is aware that this country will never right it-

self until wc "fluke" fearless politicians who will get into Parliament and tell these moneylenders and farmers that tliey have made bad bargains, consequently they must abide by them, "lie farmers of New Zealand have always been over-pampered, but tlie_ time has come for sane business to be introduced into the farming industry, and that can only be done by writing the price of the different farms down to their actual value irrespective of who shall be the losers —the same thing applies to liouse, and city properties —but where are we going to find the politicians to do it? One correspondent suggests putting the unemployed to work on farms at no cost to the farmers other than t o ®"- and accommodation, which really amounts to giving farmers the "dole, and consequently assisting the speculator farmer" who has helped to bring about the depression. If it were put into effect, I would refuse to pay the " I have no hesitation in saying the farmers have never p/iid their permanent hands a fair wage in New Zealand. When times were good they worked a ploughman long hours for 25s per week and found. While an ordinary hand rose at daylight to milk cows, he also worked on the farm until milking time in the ovciiuigj which in. many cases finished at eight o'clock at night, and his wages were from 17s 6d to 25s per week ana found. The profit made from these men s work must have been enormous; even at the present-day farm employees are very much underpaid and still the employers want the wages reduced. It is unfortunate for the farmers that such a slump has happened, but after all the price of wool, butter, etc., is now at its true value. So far as wool is concerned it is reasonable to assume that it will never again reach the ridiculous prices it soared to, nor will other primary products. Therefore, sooner or later, it must prove a blessing in disguise bv forcing the price of land, interest, etc., down to its true and original value. When this happens New Zealand will again prosper, being one of the best countries in the world, and it should bo the first country to right itself once everything is adjusted to sane prices. etC - • B. AULFELD. December Bth, IiMO. TO THE EDITOR OJ* THE TSESH. Sir. —A few months ago a letter was written to the Canterbury Farmers' Union urging them to try to prevent the Freezing Companies "Bobbie" calves from the farmers Tho Union wisely left the matter alone, t-omo formers followed this advice, and - did not sell tlieir young calves for which they could have had about'7s per head. They bought food for them, and now, after being ted for about three months, the calves are wortli from 10s to los at the sales. , . , The moral for farmers at their meeting on Wednesday is to see that it * '*•«* lo '•—"•"irftiSfot. Little "River, December Gth, 1030.