FARMERS’ UNION

Hokitika Guardian, 28 January 1932, Page 3

FARMERS’ UNION

l NEWS, NOTES AND JOTTINGS

MANY INTERESTING SIDELIGHTS

During the past five or ,six years the Union has kept a Watchful eye on the establishment of dental clinics throughout the Dominion in order to safeguard the interests of the country children. For some considerable time has been felt that too much money was being spent on establishing dental clinics in towns and townships with resident dentists. At last meeting of the Dominion Executive it was decided to point out to the Minister of Health, that wliiie not advocating the expenditure of more clinics, the Union telt that as much money as possible out of the amount, available should be spent in improving dtntal attention to -conntry children. The foliowng figures relating to dental clinics are interesting -(a) 174 tie<uliient centre* throughout, the Dominion have been stab li shed. (b) The number of schools under systematic treatment last year was 930, and the number of children receiving treatment 67,652. (c) Th e numb r of operations performed last year was 463,204. Under Scheme 4A- whereby the Unemployment Board pays a wage to laim labourers, 13,907 tn'rri have been 'absorbed on farms and the wages paid to them toteal £138,460. This scheme has been of great benefit and assistance to farmers and unemployed alike and has helped to maintain the production of all primary products.' Undi r Sen me 4B which is n fan?:, development Scheme by contract laboui, e.g. bush-felling, stumping, scrub-ent-riirn, draining etc., 1876 men have been absorbed, and £17,000 paid as subsidy by the Unemployment Board. The Bmin grants a subsidy of 33 1-3 per mnt. on the labour, only the farmer must b«n; the total cost of all materials. At present the Unemployment Board, acting in conjunction with the Lamb Department is endeavouring to formulaic a scheme having for its object tiu bringing back to a productive state ot a number of abandoned farms which have reverted to the Crown.

At the last meeting of the Dominion .Executive it was decided to write to the principal Lime Companies throughout the Dominion to ascertain 'if th<-.* would allow a concession on orders obtained through Branches of the Union. It is pleasing to record the tact that many of the Companies have agreed u> allow the usual trade rebate.

During (the tour of the English farmers through the Dominion two year s ago. the keenest critic of our beef was J. J. Gridlan, Esq., the well-known Aberdeen Angus breeder of Maisemore Par.' Gloucester. Those who met Mr Cndland will b' interested to know that he won tlr .Mipreme Championship for tat cattle •the Smithfield Show held at the beginning of last December. His winning animal was ail Aberdeen Angus-Short horn cross, 1 year .11 months old, with a live weight of 14cwt. 21bs. (The dressed weight of a bullock is a little ove: half the live weight).

Than important phase ot finance reduction in interest rates —is to be dis cussed at the forthcoming Dominion Executive meeting next month. According to the Government Statistician one.third of an ordinary farmer's annua expenditure is in the form of mortgage interest. With such a mill-stone rou.n the farmer’s neck, success in farming at the present'time 'is impossible. The reasons advanced ior a reduction in nterest on loans to the Government ar cases made a reduction in their rates ■>■ interest ; it is felt by some that sub,serif, rrs in Government securities should - prepared to make some sacr.fiee too. (2) .: a reduction 'in the rate of interest o Government Securities were made, r

corresponding reduction in interest nice: could be extended to borrowers throng . Government Departments, tints helping to ease the financial strain. (2) A n duction in interest rates on Uovfrnnumi Securities was made a short time a,. : r .Aunti'aliii and in Kngland to rej.ew. the strain on the farming community it is contended that a similar reduction should be made in New Zealand. Th. re are two phases of a farmer: mortgage interest payments which ancrippling him:—(a) Interest is being paid on fictitious land values in many cases, in oflher words interest is being paid on something which does not exist. Land values in the Dominion have increased from £87,000,000 in 1807 to £345,000,000 in 1930; since 1913 a rise 0 f £130,000,000 has been made. For vear s and years the farming community has been paying interest on mortgages based upon these inflated values ; paying interest on something which does not exist, and cannot last long, (b) Interest payments remain constant, irrespective of export values, so that an annual interest payment of say £l2O would w-'gh much more heavily on a farmer to-day than it did, say three years -ago, when his income was double what it is to-day. .Money is the most sensitive commodity ill tile world; in an atmosphere o. security, it is very mobile, and will ,)l<iw freely, but h't tl.ere.be just tin faintest suspicion or suggestion of insecurity and iit will immediately become Vi -izen' and scarce. Investors throughout the Dominion are constantly <»>' »" look-out for investments earning •• hi „ h rate of ml trust as possible compatible with the .soundest security. Gael, investments arc Government h, »"» s ... stock, hut once the rates ol intcics. are interfered with by ro.npu-s.on tlcn oiilidenee in Government securities w,l, ho slant telard for nil time. Abm-ovcr mch a compulsory reduction would lorn, an exceedingly dangerous precedent my future Governments ol the minion. 'l’be following extract taken I rum tinSupplementary 'Financial Stittum.nl o

6th October shows the Government’s views on the interest reduction pro blems :—"Any compulsory reduction ol interest payanle to bondholders would in reality mean default by the 7tate, and would seriously damage our credit. Whatever the position of private borrowers may be, the State is .still able to pay its debts. In my (M.nister of ■Finance) opinion, it could not, and should not, plead inability to pay when the bondholder demands his interest. European experience seems to show * nit destruction of confidence in the security of savings'is the most seriou s calamity that can befall any nation, and the Government's chief aim must be a proper maintenance of, public confidence. Moreover, the State is not only a borrower, but a lender of many millions through the State Advances anti other Deparments. If, therefore; Ti . concession' were extracted from the 'bondholders,' the State would be expected to pass this concession on to it* borrowers. But many of these borrowers have hern’ financed out of loans raised o\eisea.>, and under no circumstances could the iSt-ate claim relief in respect of overseas interest payments. It', therefore, the concessions extracted Iroin the -■ ( " Zealand "bondholders were passed on to all borrowers, the State would lose more than it would gain, by some hundreds of thousands ot pounds. The result would be to further burden the Budget instead of hr.aging it relief. During the 1922 slump the Government agreed to postpone some of the half-yearly instalments ot soldier settlers and to extend 111. mortgage period accordingly. If the same principle were adopted with 'borrowers from Government Departments at the present time some relief would be obtained.- I ' On .the other hand the Government holds about one-third of the existing mortgages in the Dominion, so that the balancing oi the Budget, would be impossible it the postponement, of halt-yenilv patm lit. became universal.

In the Budget of 30th .July the Brunt* Minister announced that where circumstances justified it, the State Advances would extend systematic consideration in cases of genuine hardship bv extending the period of the balance of the loans or by otherwise easing the Linden of the half-yearly payurnts. The farming community is som-what restive and anxious regarding the eth- 1 the pooling of exchange on exchange rates themselves, as there is a fe ling •hat there may be a drop 111 present rates. The New Zealand farmer is considerably handicapped through tlm present rate of exchange with London, as his Australian brother gets £125 tor every £IOO worth of produce .sold m 1 ondon, and his brother in South Ainca gets about £l3O for every £IOO worth sold. The Argentine has for a long time been enjoying the benefits ol an exchange equally advantageous. A section of the business community throughout the Dominion is advocating the formation of an Exchange ~B,g:u u to fix the rate of exchange from tin. - M time so a s to .keep the index of export prices as nearly stable as possible. Whalt 'the New Zealand fanner neuis more than anything to-day is to feel that the prices for his produce are ms stable and as high as is possible to make them. Without both of these vital questions answered tor him in a practical manner, the average New Zealand farmer will soon fade out ol existence.

The imports of motor-spirit for the past four years have been : 1927: 48,042,640 Imp. gal. worm £2,005,983. 1928: 54,540,416 Imp. gai. worth £1,665,451.

1929: 62,448,092 Imp. gal. worth £2,130,835. 1930: 68,309,672 Imp. gab worm £2,090,542.