FARMERS AND THE DEPRESSION.

Press, Volume LXVI, Issue 20107, 10 December 1930, Page 11

FARMERS AND THE DEPRESSION.

PESSIMISTIC TALK DEPRECATED. ADVICE OF AN AUTHORITY. [THS PBESS Special Service.] AUCKLAND, December 9. ''Although New Zealand is certainly experiencing a wave of economic depression caused principally by lower prices for primary products, conditions in the Dominion are far better than they are in, many other countries." This is the view of Dr. H. E. Annett, of Matangi, research officer in New Zealand for Imperial Chemical Industries,, and an authority on farming matters. "Pessimistic talk will get us nowhere," he said. "Admittedly there is need for a certain amount of political action; but there is just as much need for individual action by all classes of the community. "The drop in butter prices had caused alarmist reports in some quarters that farmers would be forced to leave the land," Dr. Annett continued. These reports in the main were unfounded, as the majority of the farmers realised that their farms were their only assets. While the conditions were adjusting themselves, a number of farmers on the border line might be forced to quit, and if steps could be taken to keep them on the land they would be well worth while. Moratorium Not Favoured. "As for the others, their main objec tive should be to maintain the standard of their production," Dr. Annett said, j "They are certain to receive liberal treatment from mortgagees. There is very little risk of mortgagees foreclosing at present, and no useful purpose would be served by the granting of a moratorium. Farmers may need some assistance in maintaining the standard of production; but if they will do this the future is not nearly so dark as some people believe. "It must be remembered that New Zealand is still in a position to produce butter-fat at a lower price per pound | than any other country in the world, j This is a most important factor, and , one that does not operate to the advantage of compiling countries, which are I also feeling the slump. If only the i New Zealand farmer had thought less j of co-operative marketing and more of co-operative production fce would be in a much happier position at the present time. In Denmark the farmer does not bother about the marketing of his products; his job is to produce them. ; The farmers here would be well advised | to leave the marketing of dairy produce to those competent to deal with the I problem and to concentrate on pro- | duction. "Naturally, when prices are falling farmers look round for some means of reducing their costs. The view has already been put forward in one quarter that farmers should be able to cut aowu on fertilisers. This is pure fallacy. We know definitely that New Zealand must have phosphates, and if the farmers decide to cut down on fertilisers they will lose all the ground they have gained in recent years. Fertilisers are absolutely necessary for the maintenance of production." Political Action Needed. Political action for the benefit of the farming community was needed in the near future, Dr. Annett continued; but it was necessary to dispel the idea that the farmer was up against the rest of the community. Any political action should aim at co-operation between all classes. There would have to be_a reduction in wages without a reduction in the standard of living, and there would certainly have to be a reduction in taxation in some form. New Zealand was recognised as being one of the fe_w solvent countries in the world; but in spite of this there was no very easy channel at present through which farmers could obtain financial assistance at a reasonable rate of interest. Personally, he thought that they had not availed themselves of the benefits of the rural intermediate credits scheme as much as they might have done; but there was still a need of some pooling of financial resources so that the farmer, on whom the wealth of the country depended, could get cheaper credit. PALMERSTON NORTH PROPOSALS. (PBESS ASSOCIATION TELEGEAII.) PALMERSTON N., December 9. The Palmerston North Chamber ot Commerce this afternoon passed a resolution recommending, in view of the depression : (a) That with Government mortgages payable on the instalment principle, so long as interest is paid, further payments of instalments be postponed. (b) That drastic economies and commercial methods in Government Departments and public bodies be insisted on. (c) That further railway construction cease, and control be placed under an independent Board. (d) That payments for wages on relief works organised bv the Unemployment Board be on a lower basis than the current rates of pay. (e) That the policy to which all bodies, persons, and the State should be directed should be that of reducing production and living costs, with conI sequent economies in Government, local body, and private expenditure. Almost similar resolutions were passed unanimously at the Manawatu Agricultural and Pastoral Association, which also urged a reduction in the salaries of members of the Cabinet, members of Parliament, and Government officials, and the stispension of Arbitration Court awards.