IMPERIAL SUPPLIES

Dominion, Volume 12, Issue 33, 2 November 1918, Page 12

IMPERIAL SUPPLIES

JR. LYSNAR REPLIES TO MR. &EAIJCIIAMF (To tlio Editor.) Sir,—Under (he above heading, in your issue of October 21, you publish an article in which ,you rjitolo from a lottoi , written by Mr. .Harold Beauchainp, chairman of the Bank of New Zealand, to the Prime Minister. By some magic means of calculation Mr. lieatichtimp says that because our exports have increased in value, lo llui extent of •£11,000,000 or JU2,000,000 per annum over and abovo pre-war prices, it is dilficulli to realise that anybody in this country would be prepared to accept such' a statement as that contained in an jddress to Southland farmers, which alleges that under present arrangements producers are losing and cone-ding •£7,650,000 per annum in conncclioii vith their -wool, and on tneir meat, mainly lo the benefit of tho profiteers and to the detriment of the J.mx;i>rinl authorities and consumers, and 1 lion ho goes on to approve of the extension of the meat and wool contracts for practically two years after the close of Iho war.

Now, it is very much to bo resj-tUed that Mr. Beauchamp should make Mich a veiled denial of the accuracy ot the figures quoted without explaining wliero they are wrong, and he entirs.y overlooks the increase of exports as veil as the fact that statistical basis ,ljcforo the war was a conservative advance basis of values only, while present values are on the basis ot , a complete sale; I would like to say that, before these figures were quoted at the meeting iu Southland they wero first submitted in detail to the National Government, which was specially asked to investigate them and to either disprove or acknowledge that the farmers in New Zealand are making these or other approximate concessions, and .in -the Acting Prime Minister's reply to this request no question is raised as" to the inaccuracy of these figures. What right has Mr. Beauchamp to question the figures in this veiled manner? To my mind his attitude in this matter is characteristic of the commercial men of this Dominion for years past, -\viio at all times have adopted a stand of ridicule and hostility directly it was suggested in any way that tho farmers were labouring under any disadvantages or threatened dangers from meat and shipping trusts and profiteers. I regret to say that this is not the first time I have had occasion to take exception to Mr. Beauehamp's remarks on tills head, as some time back, when I was speakiug against the disadvantages of the Port of London, and the dangers of the shipping and meat trusts, he then belittled my remarks, and I unhesitatingly say that subsequent events proved absolutely what I stated at that time: In order to remove the disadvantages which I pointed out in the Port of London .tho authorities -there promised to spend no less a sum than .£11,000,000, and they sent Mr. Estall as a special emissary to New Zealand to.assure us here tliat this 'would be done. 'Then, the New Zealand Parliamentary Committee, which the National Government very prudently had set up last session to investigate the meat and shipping trust dangers, fully justified and established beyond question everything I had stated .in-inference to the dangers of these trusts not; only to the producer, but to the Dominion as a whole, and tho latest addition io this is embodied in the astounding and damning findings and admissions disclosed by the Federal, Trade Commission's report of the United Slates, dated July 3. .1918, from which I take the following extracts: This commission, referring to the" meat combination (of tho big five firms), states that the power of this meat trust has been and is being unfairly .and illegally used to "manipulate live-stock markets, restrict interState and international supplies of foods; - control tho prices, of dressed meats and other foods ; v defraud both the producers of food and consumers; crush effective secure special privileges from railroads, stock-yard companies, and municipalities; ' and ■profiteer." . '. . "The purposes of this combination, which for more than a generation has defied tho law and escaped adequate punishments, are sufficiently clear from the history of the conspiracy and from the numerous documents already presented, namely, to monopolise aud divide nir.oii'g tho several interests'the distribution of tho food supply, not only of tho United States but of all countries which produce a food surplus, and, as a result of this monopolistic position—to extort exces. sive profits from the people not only of the United States but ot a large part of the world." ■ . . The facts show that tho net profits of some four.or five of, these big companies really amounted last year to considerably over the total gross revenue of tho New Zealand Government.

The other point I exceedingly regretted to notice in Mr. 'Beauehamp's letter to the Prime Minister was his intimation on September 21, 1911,.shortly after the outbreak of war, to the.effect (hat without a Government guarantee in all probability the banks would not be disposed to grant advances on unshipped produce on the security of the produce alone. This, to my mind, makes very disquintcning reading. ■ Had '(he correspondence disclosed the fact that the necessary advances were beyond the financial reach of the bank's I would not have referred to this matter, but seeing that it does not do so but plainly tells tho Government that unless they guaranteed the advances'in all probability the banks would not advance, this raises to, my mind a very serious and important aspecb.of the. very basis of our financial position, and it is the strongest reason which I have yet seen for suggesting the time has come when onr Now Zealand Government should consider the question of a Stato bank, for if a pistol is to be held at the head of our Government every time, a calamity arises, and the banks can say to it: "Unless you guarantee we are going to, in effect, cripple the finances of fhe Dominion," 1 seriously say that this is a position which our statesmen should not lightly overlook now that it has , been publicly disclosed. 1 would ask what have tlw financial and commercial men of Nuw Ze.mnd aone to-assist the farmers to romliat tho dangers and disadvantages . their trade is labouring under in fighting these huso Meat and shipping trusts and pro'Ueei.-i. particularly in face of the craning and incontrovertible facts now' established H.iough the Parliamentary Comiiuttei! set up both in Now Zealand aud the Uiiited States? I say they have.never done anything, but nave always tried to 'hiw cold water on the efforts i>f tho farmers! I fully realise those matters are really a fight oi the farmers, to b-e fought oil' their own bat, but I strongly deprecate the attitude of the commcmia men of this Dominion in endeavouring to use their influence to bt'itde an,l retard improvements and reforms, especially in face of our Finance Hv Jcpph Ward intimating to us that we will have ic face heavier tat.r.lioi!, and that i' hi* upinion this war lias carried the world on (wo hundred and fifty ytars. H *his b» bo tar. why shoui-i Mi, Eeiuichamp use his influence to endeavour to force the farmer to sell his produce at prices which enable the profiteers for two years after tho war to make millions out of it? What would Mr. Beauchamp say if the farmers urged the authorities to force the banks to make an unfavourable contract for two years after tho war restricting the banks' business. Tho position to my way of thinking is quite unwarrantable and unjustifiable, and I sincerely trust that the Hon. Mr. Masfiey will not be influenced against continuing to advocate the right course in those matters. I greatly deplore tho ■fact that one has to. write in this strain about our commercial men, who in other respects I hold in the very * highest esteem, and. fully appreciate their usefulness, but they must recognise that they have not a monopoly as to what should or should not bo dono in the interest of the farmers, and the least they can do if they cannot assist him is to stand aside and let him fight his buttle out without their hostile influence.—l am, etc., W. DOUGLAS LYSNAR. Gisborne, October 2G, 1918. [This letter has been curtailed owing to pressure on our space.]