WELLINGTON NEW

Hokitika Guardian, 11 August 1926, Page 4

WELLINGTON NEW

FARMERS’ CONFEIIEENCE. (Special to “ Guardian.”) WELLINGTON, August <J. The annual conference of the New Zealand Farmers’ Union for 1920 lias ended and on the whole it can be said that a great deal more enthusiasm has been shown by the delegates, and generally there has been disclosed a far greater appreciation of the economic circumstances of tlie man on the land, '[’here were of course some wild notions of price iixing through control hoards, but there were quite a number of delegates who recognised the futility of the operation of control boards. Jt was recognised that the Customs tariff pressed rather heavily on the farmers and did not help the secondary industries to any great extent, for there was a fresh appeal for increased protective duties. The farmers are not only opposed to increased duties but are also

anxious to see the present duties great, !v reduced. They argue, and not unfairly. that they are obliged to sell their products in the open markets and

without any chance of protection or preferential treatment, but when they buy goods for the farm, the house or for personal use they are iorced to buy in a protected market, and pay higher prices than would he the ease if the market word open. This adds to the cost of production and farmers can see no way of reducing such costs, except by insisting upon the reduction of Customs duties. Furthermore. the basing of wages on the cost of living is unjust to the farmer and to the rest of the community and the Arbitration Court, which was originally established to settle industrial disputes, has gradually developed into a State institution for the fixing of wages, and every decision of the Court either involVcs a rise i:i wages or no change in wages. The farmers contend that if there is slackness or dullness in certain industries it is not because the •Customs tariff is too low, but because the cost of production is too high. The industries are not producing sufficient to warrant the present high scale, and instead of seeking to reduce the cost of production, which would inevitably involve a readjustment of wages, they rather desire to take the line of least resistance and urge an increase of Customs duties. It is believed by some that the rigidity of the wage scale imposed on the community bv the Arbitration Court will presently cause serious trouble, for as tlie purchasing power contracts, as it must with the shrinkage of exports, the industries will feel the position very keenly. Falling produce prices and rigid wages arc incompatible; wages must ho readjusted to the changed conditions, or unemployment increase, aid many shrewd observers are of the opinion that unemployment will be more severe next winter. MERGER OF MEAT COMPANIES. The problem of dealing with the uneconomic units of the meat freezing industry lias been engaging the attention of many of the delegates to the Farmers’ Union Conference, but no feasible scheme lias boon so - far brought into view. It is alleged that a proposal to amalgamate the "Wellington Meat Kxoorl Company and the Wairarnpn Farmers’ Meat Company lias been made and lias been turned down, for it meant merely adding the losses of one company to another, as the purchase nrice was to be paid in shares. The .difficulty facing the freezing companies is one of capital, and if this problem is not solved before the season openseveral additional companies will be obliged to remain idle. The question is where and liow is the capital to be obtained? The banks are not likely to increase fbeir advances for the simple reason that the assets of freezing enmnanies have no market value, and are therefore not a security for advances. The public will not find tlie money for freezing companies arc in bad repute, that is to say they are not viewed as a safe investment. Money cannot be obtained from foreign sources because of ti e embargo of the Meat Board. Thus it will die seen that the position is a very ugly one and not easy of solution. The policy of the 3font Board is at variance with common sense and economics, and it is rumoured that the members of the Meat Board are at loggerheads on the matter. There lias been some plain speaking at the meetings of the Board last week.