PRODUCTION OF WEALTH

Hokitika Guardian, 13 July 1931, Page 2

PRODUCTION OF WEALTH

INTENSIVE FARMING. SCIENCE AND THE LAND. LORD BLEDI SLOE'S ADVICE. “Certain it is that it would be to the commercial advantage of many farmers in the dairying districts of this Dominion in the light of modern science to farm, more intensively a. small area of land, thus rendering available the surplus for the profitable occupation of fresh settlers.”

These remarks were made by his Excellency the Govenor-General, Lord Bledisloe, in his address at the opening of the conference of the New Zealand Farmers’ Union at Welington on Friday.

‘‘The farmer’s capacity to earn a livelihood depends,” said his Excellency, “in no small measure upon the well-being of the rest of the community and the extent of the public burden which he- has to carry in order to afford them relief in times of trade depression, such as those through which New Zealand, ill common with the 'other countries of the world, is passing. It is no exaggeration to say that New Zealand has in the past been over-generous in her public expenditure, basing it upon the assumption that the transient post-war level of prices Was likely to continue and that an average standard of living and a rate of public expenditure upon social and other communal services, unsurpassed in scope and generosity throughout the- world, might be maintained without any serious impediment to the paramount process of wealth production.

“Tin’s assumption has proved.to he ill-founded, and rigorous public and private economy has become inevitable, if this Dominion—still perfectly solvent—and its agricultural industry—still sound, progressive and' confident in spite of its present, difficulties—are to avoid the financial precipice which, but for drastic retrenchment/ Ties not far ahead. Retrenchment or economy is an uncomfortable process, involving much sacrifice, patience and self-con-trol. Bilt it is vital to the country’s future.

Incidentally, an obvious universal and unbending determination on the part of the whole body politic to embark upon it wijl do more than anything else to enhance the credit of the Dominion in Great Britain and other countries of the world and thereby enable her at less cost to herself to obtain her monetary requiremehts ' lind' meet "her financial obligations.

"Nothing, however, should he done except in fnee of dire necessity to hamper legitimate industrial enterprise or stifle the incentive to produce more wealth and with it the capacity both to employ those who are unhappily- and through no fault of their own out of employment, and to meet the burden of taxation. And be it remembered that the land is the only true source of wealth.

FALSE ECONOMY

“Economy which is not far-sighted and discriminating is false economy, such as, for instance, a cessation of the , progressive reclamation of potentially fertile land or of the use of fertilisers and of lime where output is bound to shrink materially through their discontinuance. Denmark has found it true economy and a sound national investment to convert worthless heather land, and Holland' great stretches of water, into cultivable- soil at a cost far exceeding the actual mar. ket value of the reclaimed area.

“Many farmers are looking for higher world prices of primary products to restore their fortunes. .Some improvement, especially in such commodities as meat and wool, may confidently be expected in the future, as an impoverished world gradually regains its purchasing capacity. But it is in reduced: costs of production and enhanced turnover rather than in increased costs of farm products that the farmer’s economics salvation will be found, especially in view of the competition which he has to face in the British and other markets of the world.

“Let me give you an illustration of what I mean. The average output of butter-fat per acre in New Zealand is 801 b., and such an output leaves at present prices no margin of profit. But several enlightened dairy farmers whose farms il have recently visited are getting, with high quality milk-iecorded cattle, wsil managed pasture, and its prudent fer tilisation. upwards of 2501 b. of butterfat per acre, and, at current prices, ere even to-day making a good net profit Out of their business. Such examples can usefully be copied. “II the price of primary products is low, it should at least be a potent factor in reducing the cost of living and enhancing the value of money, and therefore the capacity and inclination of the public to purchase. It is essential that these low values to the primary producer should, in the highest national interest, be duly and adequately reflected in the prices charged to the consumer. ■ln this connection two factors are of supreme importance. One is strict cooperation—unflinchingly loyal, even at the cost of some ’ temporary individual gain among ’ farmers themselves, and the other is the rationalisation of all those industries and trades which convert, distribute, or handle the farmer's products. This applies with especial force to a country like New Zealand,

which is isolated, sparsely-populated, and fiscally protected.

But the public must respond to the progressive efforts of the producer, manufacturer and salesman, by playing their their part in supporting patriotically the products of their own factories, so far as they are suitable and available and , thus reduce the local unemployment and the onerous financial burden which it involves.

PURCHASES FROM BRITAIN “But in what New Zealand cannot supply let us not forget the Old Country,’ continued his Excellency. “\ou may be afraid of purchasing her pedigree live-stock :(and I hope some day to be able to convince you that there is not the smallest ground for apprehension in doing so), but in your own self-interest as well as from loyal and patriotic motives you should buy and urge your womenkind to buy, from your own kith and kin across the seas, who Buy most of your farm products and need your money to buy more. You will thus help to adjust. your presently distorted monetary exchange, and by filling the holds of British ships with goods rather than with ballast enable the shipping companies to ease eventually your own freightage rates. As long as transport facilities are available and transport charges are moderate, a distance of ■13,000 miles (half-way round the globe) to' your market should not render successful competition with other less re* mote suppliers of the British market ■lmpracticable. ■‘ln spite,of local and seasonal droughts (the losses, from which can be largely obviated by making ensilage or growing deep-rooted crops such as lucerne o"i maize), you have the. finest growing climate in the world. Unlike your competitors, your herbage will grow continuously in many parts of this Dominion for eleven, if not twelve, months of the year, and your live-stock need little or no housing or artificial food. Incidentally, they are in consequence healthier and their meat and milk more palatable and wholesome.

“Only be of good courage, provide for your customers uniformly good produce of the exact quality and description which they want, stick loyally together, and you will win through unscathed to better times."