CURRENCY AND THE FARMER.

Press, Volume LXVIII, Issue 20495, 14 March 1932, Page 13

CURRENCY AND THE FARMER.

TO THE EDITOR OF THE PBEBS.

Sir, —In your issue of March 9th "Veritas" did not read the letter of "Ex-Farmer" very carefully. Mr T. B. Macdonald was out to help the unemployed at the expense of the whole community, including the farmer. No increase of taxation was suggested by "Ex-Farmer." An issue of currency, when produce was raised at under cost, to be redeemed when produce was being marketed at over cost, need not involve any extra-taxation. An increase in production thus secured would mean the

employment of men by experts at'work wftieh would produce something valuable. 1 would ask. "Veritas" to explain further how relief works are to be carried on by private enterprise. This would be a valuable contribution at the present time. A sales tax on producers who had received a bonus on sales need not cost the community anything. It might mean that produce sold locally would not be sale taxed. I am aware that increased currency, if persisted in, would be inflation that could not be carried on with; but a balanced currency, issued when prices were under average, and redeemed when prices rose over average, should work right. The law of average works all ! the -time. Any trade graph shows as much over the line as below. Farmers are walking off the land and there are not enough experienced farmers to take their place. Mere speculators of not a good breed may take advantage of the times to buy land cheap, and await the certain rise, but that is not good for the community. I agree with "Veritas" as to the present- bad times being the result of Government and local body borrowing, for enterprises estimated to; cost six millions and when completed found to have cost ten millions; c.f., the Sydney Harbour Bridge. There have been too many Government jobs of that character. I also was brought up on an old country farm, managed it for six years, and so know the use of economy and the necessity to help the farmer if the country ]a to prosper.—Yours, etc., tit ~,„ EX-FARMER. March 12th, 1932.