The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, DECEMBER 22, 1930. PRACTICAL POLITICS.

Hokitika Guardian, 22 December 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, DECEMBER 22, 1930. PRACTICAL POLITICS.

The Government has again done the right tiling in maintaining the closest possible study of the Dominion’s financial position. Time and again it has gone about its business in the right wav, and on the present occasion is doing the right thing at- the irght time—a true example of practical politics. The country can rest assured that the t inted Government is composed of men who are putting country before person, and who are not afraid to do their duty, be the consequences politically what they may. Of late there hap been a good deal, of obvious organisation by the farming section of the community to stampede the Government into such action to grapple with financial possibilities. It is clear of course with the fall in produce prices, both the farmers and the country are going to be hit badly. The farmers are not receiving an adequate .price for thencommodities which are the main prop of the national production. There will b© a huge, fall in prices, and this will affect all sections of the community. It is well to face the facte betimes, and that is the proposal of the Government at this stage. The Prime Minister (Mr Forbes) 'will be hack again in about a month’s time, and by then his colleagues will be able to place before him ft general survey of the national situation and its effect on the country as a whole. Upon that information and advice Mr 'Forbes must decide as to immediate action, whether in calling Parliament to "other or taking such other alternative istens as niav suggest themselves to meet the extraordinary situation. Tn -particular, the case of the farmers is to have special consideration, and no doubt temporary relief will be suggested where it is necessary. It will not he wise to drive the people off the land, when it is the policy of the country to place more peonle on the land. That situation has to be met and grappled with. The railway position is another very pressing prol>lem. It would aonenr more branch are to he closed, and certain rail wav works stopped, hut all the time the railway revenue is decreasing, The situation calls for heroic action, and it would appear Ibis Go\ernmont is prepared to take it. Another aspect is the volume of taxation which is pressing heavily on

many industries in particular. The customs’ duties can hardly be stretched further to help the lagging industries, and taxation relief is a difficulty because money is needed so urgently for social sen-vices. Doubtless tine administration will have to lx) seriously overhauled. There must be some reduction in that quarter, and members as well as salaries must be reduced. Again there will he the call for heroic action. As regards interference with finance, the interest burden on the farmers is very heavy. From figures published lately the outgoings of the average farmer in a typical group, was over forty per cent of his total expenditure. This is obviously too great a load at n time when his produce is o’n the market at less than half the normal prices. Interest rates are difficult to tamper with, and there is the risk always of providing cheap money. Experience has shown that capital values jump at once in sympathy with the decline of interest Tates, and with« matters ns they are in Now Zealand at this Stage, that is not a promising outlook, and adds certainly to the position. Out of it all good must come. The step the Government is taking will lend to concrete action along sane dines. It is encouraging to note that the Government was no.t influenced to take any hurried action at the behest of the irresponsible farmens’ meetings. What ever is done now, will be done after a full estimate of the whole situation, and for the benefit of the whole and not the few. New Zealand is fortunate in being so sanely governed at this all important juncture in its existence, A less responsible Ministry might have rushed into foolish action, bur Mr Ransom and bis colleagues have taken the right course, and will have every ,sympathy and encouragement in t,he task which has been undertaken. The sten is a, great stroke in practical politics calculated to achieve the most desirable and lasting results.