The Dominion TUESDAY, OCTOBER 11, 1921. THE FARMERS’ STANDPOINT

Dominion, Volume 15, Issue 14, 11 October 1921, Page 4

The Dominion TUESDAY, OCTOBER 11, 1921. THE FARMERS’ STANDPOINT

■ Although the Farmers’ Union has long occupied a recognised place as an organisation of great value to primary producers, it has never yet been turned as fully to account as it might have been in promoting the common interests of the farming community. Over a period of good years farmery were busied with their individual affairs, and up to a certain point were content to pursue a policy of drift jn regard even to such questions of general policy as are of great moment to the body of producers. Now that the pinch of harder times is being felt, the need of effective organisation is commanding recognition, and, as may be seen from reports laid before the Dominion executive of the union by its president, Mr. Polson, farmers are showing an alert inclination to rally round their national organisation. Farmers certainly will be wise to get together in a practical way in order to devise means of overcoming the very formidable difficulties by which they are at present confronted. Partly for _ the reason that they have bee r hitherto somewhat neglectful of their common interests, farmers, of course, will have to he content to more, or less gradual progress in improving the organisation of their industry and promoting better conditions of export trade. Their Dominion executive is advocating a wide extension of the co-operative principle in relation to shipping transport, the marketing of produce, and agricultural banking. All of these proposals as time goes, on may provide a basis for practical policy, but even their most enthusiastic advocate will hardly expect to see the whole of them brought into operation in the near future. Adopting the sound policy of attacking problems in their order of importance, and dealing with one thing at a time, farmers will probably decide that so far as these proposals are concerned, the question of oversea marketing has first and most urgent claims upon the attention of their national organisation. In this matter the executive, whose proposals have been very clearly explained oy the piesident, appears to be getting down to practical essentials. It has wisely discarded the idea which was talked about at the Dominion conference of the union of establishing retail shops in the United Kingdom, and proposes instead a system of selling through depots to the retailer. Undoubtedly there is great room for improvement in the conditions in which. New Zealand produce is at present being marketed in Britain, and the depot system has much to commend _ it. Besides offering safeguards against the careless handling and consequent deterioration of produce before. it reaches the consumer, it ought to ensure that New Zealand products will reach the consumer in their true character, and not masquerading under any deceptive label that a speculative trader may care to fasten upon them. Getting into effective touch with, their ultimate market by means of the depot system, the farmers of .tho Dominion will be very much better placed than they are at present to obtain assured and profitable returns on exports of meat and dairy produce. In view of the place their industry takes in the economic life of the Dominion, primary producers are vitally concerned in all questions of national economy. A considerable reduction in national expenditure is badly needed in the interests of the whole community, and it ought, to bo effected as rapidly as possible. The need of economy is emphasised by the figures of increase in departmental expenditure which have, been published by the Taxpayers’ Association, but presumably the position is already modified to a considerable extent as a result of the economics and retrenchment upon which the Government. is at present engaged, and in which it appears to have made appreciable headway. No doubt, in his capacity as Minister of Finance Mr. Massey will take an early opportunity of informing Parliament what economies the Government has effected and proposes to effect. It would be interesting also to bear what proposals have been advanced by the. departmental committee on economy which has been at work for some time past, and how far these proposals have been carried out. What is needed in any ease is not a sudden and reckless •inplication of the priming-knife, but a painstaking and methodical process of reorganisation which will lead to lasting economies without prejudice to efficiency and smooth working. In what they had to say about the reduction of producing costs, some of the speakers at yesterday’s meeting took insufficient account of the essential interdependence of wages and prices. There is little doubt that general benefits would result from an all-round reduction in money wages, but it has to be recognised that a rapid adjustment on these lines is impracticable uni the downward movement of local prices is accentuated. In view of the extent to which prices for their own products have fallen and arc falling, farmers are in every way entitled to ask members of the general business community how far

they are prepared to co-operate in lowering producing costs by lowering prices, and so increasing the purchasing power of money. A concerted move in this direction seems essential if a general readjustment of wages, prices, and producing costs is to be expedited. The people of the Dominion have got to realise that the total income of the country has shrunk and shrunk enormously—and that with so much less money available individual incomes all round must shrink correspondingly.