THE WAR BUDCET.

Dominion, Volume 8, Issue 2558, 4 September 1915, Page 3

THE WAR BUDCET.

•Sir,—ln ; writing .the following I:am .hot intending to hamper the autliorities /by 'making a criticism of their method ■ of .-raising money under tho extremely . difficult;circumstances which: at present ■ exist, but I am suggesting another method, which might, I think, a, better;:scheme for getting funds'necessary for public-works from the political economists.point'.of view. - ,° 'At. beginning-of', the-war; arrangeMents ffere raado for the Home authorities to take our whole output of frozen meat at'certain/fixed prices.. At the , •; prices . at which meat was..selling,,all over the world at that time no patriotic New would even have thought ' of raising much 'objection to. this..*-/As things are now, howeveri vtho cnntiiiuf ■ v ance of this arrangement . is : obviously, from ,thb political :ecou6mi«t's. point : of: ' view fatally, unscientific,/and:th'e. reason why is as follow wealth, of .New* Zealand, :taken /as;/ono huge concern .or. / producing machine, as also/her power;to purchase what she imports and to meet the interest on her loans, is limited by what she produces}:and 'has in -effect _tooffer in exchange. . To: liniit the .prico , at which she can sell her principal export abroad is /the , same ; thing as to : limit her purchasing' power, abroad. The value: of; almost artic.lo . imports/ hasarisen;:' and is risjng, sp';that, the purchasing power ;or exchange value of her frozen meat'/is gettrag/less'owing to the fixed price imposed by .pur/ own Government; e.g., v fencing wire;;'. has ' nearly doubled in .price since the; begin- ■ r.ing of the war, whilst frozen,carcasses' • have vbeen keptv,stationarye.g., .New, Zealand would liavo to exchange a lot , more frozen carcasses for. a) ton of English or American wire now than at'the. tepinhing/'of the war. . Surely to allow ' this to continue, is, economically speak- . .ing, madness. ■. v ... • • Now, I think .• that anyone who has studied' the : present condition of the English meat market would concede that. our frozen meat would, if sold on the

J- open market; .-.make", about 2d. per lb. moro than the present fixed price. Wo : are 'therefore, giving to tho , Imperial Government a subsidy,towards-'carrying ■ on the war equal to 2d.- per-lb.: on our. .-: itbtaf-meat export;. Jf .doing; this; is real■V ly going;to help them much, then I for ? :bne;-&-!notigru<3ge'.-it';' but.i;l : ; think it j;.; would bo far better and fairer to the P. -farmers , ; t<i giVo it-in cash so thatpeoplo »at :Home,' arid especially' people'jri'-; this' country, might realise what cur fanners already contributing. ' • he' fairer,, to'.the .farmer for..the' New ''Zealand .Government :• to I commandeer the:meati 'sell it in'.the open: : market- at:, Home,-' pay-' tlie farmpr tlie ] same price as.now,;treat as public rev- : enue, an'd allocate 1 the balance (of about ;2d, per lb.) towards raising; the. money t now needed for public works, which was , to have been : raised by. a'loan floated hero. in New; Zealand? The sum thus raised;bf 2d. per lb. of -our total meat export would be very large.-The whole community, would, it is true,i_lmve to ~ -fcbhtribut'e -"atlittle in; tho . increased <i'local'price of .the -meat ;he Hised.(that is,' unless means could be found for avoid- > ing tho- local rise, and I think I .see how'it could be done), but the. farmer, v - would' be contributing ,by far the larger sum (as now),' only the rest of -the coa»- -. munity would realise -it. -Raising . -this '. loan locally will, I thiiik; mako it very ; hard :for,'. farmers to reiiew : .their .mort- - , : : gages;- ilf-.the-country ! 6-'interests.i' demand it, you .will 'f.nd ' ' thdugh'it will;hit,tliein-liard. "I'<lo not' wish to force- myself, into public -notico or bo drawn into ia' ; newspaper controvers.y, and 1 therefore' whilo giving. you my name and address, I sign this letter. only as what I. now; am ■ , : 'A ; FAR-BAOK TE KUITI FARMER. ' P.S.—I, shall -riot : see. any replies- to this,' . as: I' only, get fa mail once a week, 'and do not tak9 The Dominion. -': ' '■ ' 1 • J''-