THE ECONOMIC POSITION

Hokitika Guardian, 30 March 1928, Page 4

THE ECONOMIC POSITION

i'ROFESSOR IIELSHAW'S OPINIONS. WELLINGTON, Maid. 28. Professor H. Belsbaw. of Auckland, dealt exhaustively at the National Industrial Conference to-day with statistics showing the economic position of farmers, and concluded: “Despite increased productive efficiency, the real net income of the agriculturist is in general appreciably less than in 1911. Stated more specifically, till l conclusions are as follows : “tl) The exchange value of agricultural goods in terms of consumers’ goods bought retail is considerably less than in '1914, so that even if costs had moved proportionately to agricultural wholesale prices, the farmer would he worse off. “(2) Local taxation borne by the | farmer has increased appreciably more

than export prices. To bring such taxation back to a parity with export prices it would have to tic reduced by say, £500,000 in 1925 and £1,000,000 in 1920. The i»ior?a <e in taxation is due only in part t> improved services, f do not believe that land taxation represents an appreciable burden on the majority of farmers, though it may in some instances. •■(:)) In 1920 agricultural wages would have to lie reduced by at most £BOO,OOO to bring them back to a parity with export prices, but it must lie remembered that agricultural labour did not share in the substantial profits of the boom period. “(4) Contrary to the generally accepted view of the disparity between agricultural prices and the wholesale prices of agricultural producers’ goods'has been beneficial to fanners in general of recent years, though r.ot necessai ily to particular groups. The

assertion that the Arbitration Court through its effects on manufacturing costs has raised agricultural costs relatively to agricultural returns is untenable, but there are reasons for believing that the margin between wholesale and retail prices is in some instances too high. The effects of over-capitalisation and an increase in the number of retail businesses, together with the inflation of urban site rents, have not yet been fully worked out and are probably responsible for too wide a distributor’s margin in respect of some commodities. “(b) The most pressing burden on the farmer is the inflation of capital charges in respect of land. “(C) With the preceding problem is that of rural credit.

“(7) There is room for further enquiry into the costs of retail distribution.”