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Hokitika Guardian, 5 August 1931, Page 4

Tt will not be cheerful reading to learn the opinion of Mr A. M,. Borthwick on the state of the London market, as set out to-day in the thought for the times. He holds that “prices cannot rise,” and if this proves correct as events now point, the lean times are to continue for the man on the land. Developments at Home within this last week indicate that the finance of Great Britain is not as robust as it might be. The costs at Home as elsewhere have been mounting up, while revenue has been falling. Tt is a state of affairs not dissimilar to that of New Zealand, only the figures involved are on a greatly magnified scale. But the cure at Home recommended by the special Finance Committee is much the same as that adopted by Mr Forbes. The House mn ( st be set in order, and so, if the producer has to live on bed-rock prices which are not likely to rise, he too must set his house in order. Production costs must he overhauled and saving will have to he effected. Mr Rorthwick makes the comparison that

the basic wage in England was less than that in New Zealand; and it might he added the basic w age in New Zealand is less than the earnings of the average farm producer. When this state of affairs is realised, the obvious thing to do is to bring about an adjustment. The farmer must needs •secure all he can for his produce, and so it must be marketed in the most economical manner. So far as dairy produce is concerned in this district, there is a good deal of oyer lapping, which means extra expense to he avoided. If the dairy factory managers got together to talk over the situation, valuable suggestions could be made regarding effective economies which might give the producer of the butterfat something additional in prices resulting from the savings of over-lap-ping. This is a time when the position .should fie faced, seriously. Mr Borthwick is well enough informed to command respect for his opinion and if prices are to continue deflated for an indefinite period, then the sooner a “get together” meeting is held the better. As matters stand, the farmers are not going to find their burden of general expenses lightened. Taxation has increased, and extra money will have to he found by most of them covering the revised income tax. Local body rates may not always he reduced, so that to make ends meet in the immediate future, calls for the practice of economy wherever possible, ami production costs might well he revised.