FARMERS REALLY NO WORSE OFI

Chronicle (Levin), 21 September 1949, Page 6

FARMERS REALLY NO WORSE OFI

t WELLINGTON, Sept. 20. The immediate reaction of a large .sec-tion of the farming community to tlie nevvs of devaluation of sterlmg, was one of dismay at the thought- that American-made farm machinery would ue out of reach. Many telephone c-aib from all parts of New Zealand were reeeived in 'Wellington yesterday and to day by leaders oi' the farming industry and by importers of machinery. There were compensatmg factors, it was stated today, aiid as far as farm machinery was concerned, New Zealand would be no worse olf than in July, 1943, before New Zealand eurrencv was brought to parity with sterling. Tliere' had been recently a reduction auiounting to about 10 per cent. in production costs in U.S.A. and Canadian factories. The reduction had not yet been rcflected in selling prices irl New Zealand but would help to compeisate for '' the increase eaused by sterling dei:aluatito,i In other words, what rhad happened was that New Zealand Would now lose the benefit gained last year ' through the abolition of the exchange rate.Duriug the past 12 months, however, not a great deal of farm machinery had been obtained from America so that farmers expeeting deliver^, of equipment in the eai'ly part of 1950, could expect to pa}' aliout the same price as they would have in July last year. ' " Another compensating factor was tlie increase of 71 per cent. in new contracts with Britam. Even if tlie farmer did not produce anotlier extra pound of butterfat above last year 's production, his income would be better. The need for American-made far.u equipment still existed and a great deal of New Zealand's requirements muKt still come from the U.S.A. which produced equipment that conld not be obtained elsewhere. The position as it was regarded by Federated Farmers : today, . was . that sterling devaluation was a step towards lielping Britain but it would nor

stop farmers here getting equipment. Tfie best way farmers could assist Bri- - tain would be to make every effort to increase production for by supplying extra food to her, Britain would be saved from spending dollars to buy food from hard currency countries. Federated Farmers advocated sending salesmen to America to sell the merit of New Zealand's butter, wool, larnb, grass seed, woollen goods and anything else that could be sold to dollar countries. There should als'o be inereased efforts tb iuterest Americaiis as potential visitors to New Zealand.