The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, DECEMBER 20, 1930. AN ORGANISED WAIL.

Hokitika Guardian, 20 December 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, DECEMBER 20, 1930. AN ORGANISED WAIL.

The far me Vs’ organisations, particularly in the North Island, are working up a gpocl deal of semi-political excitement among its followers in regard to the wave l of depression affecting the prices of primary products. In some cases it would appear that the leaders are anxious to stampede the country to extreme action which would have serious effects on the national finance. The prevailing state of affairs is not singular to New Zealand. The general condition ifi world-wide in its ramifications, so that there is at once manifest a reason why primary produce prices are down. In the usual market places there is not the same volume of money credit to Iniv a.t the range of prices created by the war period and its aftermath. It has to he realised that just as prices soared under ntress of conditions in those days, so they have now deflated under conditions which are symptomatic of the changing times. The financial difficulties of Australia must bring home to all who think, how lucky New Zealand has been to escape so embarrassing; a situation. Our taxation and banking conditions are mild to the stresfi of the Australian position, where securities have declined heavily. In the .United States also, rich and populous country that it is, there is also the enormous decline in security values, and wealth has gone which will not recur. The fanners’ organisations comohiin about taxation, and ask for derating, but value, on which the taxation is based have invariably been created by themselves. The rush for cheap money created dear land, and with produce down, the effect is now being experienced. It is difficult to see bow any Government can reduce taxation when social and Dublin services are required at the standard New Zealand has grown used to. The railways have sorved the fanners'well, and are continuing to do so but there in a. growing loss on the lines, and the management is ;it . its wits’ ends to retrieve the p<> >- t.ion. It would aonear the railway accounts are going from bad to "Orso nnd there is little bone of a. balanced raibvav budget, excepting by huge writing off which is another wav al admitting a loss which is irretrievable. 'Plie Government, too, is being pi ess < to reduce the costs of administration. This means more unemployed ns we have seen with the retrenchment >» defence, railways and other depait-

meats. There is the demand for a

Railway Board free of political control, but other countries have tried that panacea, without effective results. If existing railway lines are to be used, it is apparent the. loss will mount up. and if scrapped wo much of the national security against its public indebtedness will be lost, and finance will be restricted accordingly. The farmers are looking for more end cheaper finance, but that will reopen the former chapter and lead to land values soaring again. Some adjustment of the credit system for the time- being, till prices adjust themselves, seems the most hopeful way of helping the involved ■•farmer. Any artificial aids in other directions can be baneful by increasing contingent liabilities, and creating an insecure position. Tho farmer also attacks wages, which it is desired should be removed from the control of the arbitration system. This move would antagonise a large section, and create a new political camp which might not be good for the farmer in other ways. Slowly wages are adjust in <2 them solves to supply and demand, which is the prime factor for safetv in this matter. It was the high prices for farmers’ produce with the resultant increase in the cost of living, which built up the basio wage, and the same lever working in the opposite direction, will bring down the tscaie by conditions as they are. The arbitration system has nil round advantages which it would be dangerous to sacrifice in a momentof pique. Those advantages did not come quickly and they must not he lost abruptly. But by a gradual process of adjustment wages will be made to fit the times. Over the unemployment rate the farmers on one hand complain they are too high, while organised labour on the other hand complain the work of the Arbitration Court is. being undermined. This is a case where circumstances are altering cases, and it is best for the remedy to he a gradual process rather than a serious dislocation. "While there .are misgivings as to the rate at which trade and commerce will recover. it is more sensible to accept toe position at its face value, and hv sane and steady reorganisation endeavour to meet the situation fairly. It is not necessary to create a. stampede. The advance in butW prices of late show the outlook is not hopelesp. and with steadv courage the people should a-o forward along legitimate lines making for the betterment of all, and not the few’.