Farming Column.

Hokitika Guardian, 27 February 1932, Page 8

Farming Column.

GRASS SEED PRODUCTION. SECURING HEAVIER YIELDS. In a recent issue of the Welsh Journal of Agriculture there appeared it report of trials carried ou| at the Aberystwyth Riant Breeding Station on the manuring of grass .seed crops for Maul production. Without going into detail .it may be said that the report showed the outstanding effect of a nitrogenous manure in securing increased yields from grass seed crops. A nitrogenous manure increased the yield of ryegrass seed by 50 per cent., and of cocksfoot by 100 per cent. Apart from the ryegrass yield, the nitrogen ■treated areas produced seed of higher germination power and seed of greater weight, even when very heavy dressings of nitrogen were applied there was no serious effect on germination. Phosphates and potash had very little effect as far as increased yields of seed were concerned, nor did they increase the germinating capacity of the seeds.

FARMERS’ EXCHANGE. FURTHER VIEWS BY COMMITTEE. Th e Farmers’ Exchange Committee, in furtherance of the subject says that it is not possible to make a precise estimate of the fall in the National income directly attributable to the fall in export prices, but it is probably of the older of 20 per cent. No currency pH! Icy can avoid this direct loss, but in addition has occurred a further substantia] loss which can be largely avoided by appropriate action in New Zealand. The exchange policy #f this Committee is directed to this end and to the reduction of the direct loss by means of the Stimulation of export*. The indirect loss has been brought about through the uneven distribution of the burden, resulting from the fail in export prices. By far the greater part of the direct loss has fallen on the primary producer through the disappearance of his profits, and indeed, the emergence of losses, and this in turn lias damaged the rest of thei community and imposed an additional burden on them. Tlie inequality of the spread in costs has itaken place through the failure of different prices—including interest. wages, transport and other charges—to fall in conformity with export prices, thereby resulting in a widespread diminution in business profits and a curtailment in employment and taxable capacity. So has been set in motion a vicious circle which can only be broken by immediate actii. ’ which will again liberate the purchasing powers of farmers. How may a rise in exchange be expected to operate ? A rise in exchange of say 20 jpeu- cent, would mean a further increase in the gross receipts of farmers of £6 or £7-million on the basis of present exports, plus an increase in receipts from sales for local consumption. This is justified because farmers have reduced the price for their uervkies to city oonsumers, whereas there has been no correspondin'.' reduction in the price of city service/, to the farm. It is true that a rise in ih

price of imports would follow and that this would increase somewhat farmers’ costs, but even if all the materials used by the' farmers were increased in price 20 .per cent., this would only represent a 5 per cent, increase in these total resits. In the long run some. rise in other costs might follow, but the great proportion are fixed or move very slowly. Hence a substantial advantage would occur, either permanently, or for a long period, during which a breathing space would be provided to enable readjustment to be made. The immediate consequence is, therefore, an increase in the capacity of farmers to buy goods, employ labour and meet interest, payments so that purchasing power begins to circulate with beneficial results to employment, business profits and business confidence. 'Money incomes are thereby increased and taxable capacity is also increased. Much has been made of the additional cost of transmitting Government funds to London, and of the embarrassment, which this will occasion to the Budget. Such a view is short-sighted and takes no account of increases in taxable capacity to meet it or of the drastic curtailment. of taxable capacity if the alternative of deflation is adopted; nor is it legitimate to regard the curtailment of import revenue a s an additional factor straining it, he Budget, tor it imp -rts are not 'reduced through an increase In exchange, they will be re-, ’n.l'd through a curtailment of purchasing power. There is no cause tor assuming that. Government finance will be prejudiced by the Committee's proposals ; on the contrary, there are substantial grounds for believing that the budgetary position would be improved. The Commit to.' agrees that importers will be prejudiced through the restriction of imports and that some additional protection is given to local manufacture; but again, importers are not entitled to i'egnrd this as an additional disadvantage since the alternative ot deflation will reduce imports in any case, witliut any corresponding advantage in the stimulation of local industry. The Committee cannot agree with the .contention bfla.b -tjhe National Income would be unalfected and that the clfect of the exchange proposal is merely to shift, the burden on to the rest, of tlic community. We are definitely of the opinion that a raising ot the exchange by removing indirect impedi,mints to production will increase the NbiLoiml income and that, far Irom .sniveling a loss, the community as a 1

FARMERS’ UNION. NEWS AND NOTES. At the recent Dominion Executive Meeting it was decided to reduce the allowance to Head Office from 7s 6d per member to ss. This reduction means that an additional sum of between £2OOO and £3OOO will be available to the various Provincial Executives and Branches.

Several of the Executive were of the. opinion that legislation should be introduced during the emergency Session to permit of ratepayers who \vere not more than one year in an ears with their rate payments being able to vote at the forthcoming Local Body Elections. It was pointed out during the discussion that several L’mii'uV Councils 'were not ill iavour o) the proposal as the disfranchisement oi 2'a'tepayers who had not paid their rates wa s a strong lever for getting in rates. .Eventually, the following resolution was carried :—‘That ratepayers be not disfranchised who are in arrears with their rates for one year—to have effect for ithe present elections only.” A motion to have ' Local Body elections this year, on the grounds of economy, was defeated. ht was decided to recommend, to the various Provincial Executives that every Branch .should be visited during the approaching' winter by a small par.y of competent speakers to infuse fresh life into its activities. Members were of the opinion that some Branches would if tide away if some means ol interesting Branch members were not adopted. The winter month*; were most suitable for setting before members '.he doing s of the Union, and the part taken by it in endeavouring to solve the various problems affecting farmers.

An improved tone ruled on the London cheese market last week, arm has been reflected in a great deal of activity in local markets. Forward buying has been carried on with a good deal of spirit and already a number of sales have been effected mostly on the basis of 6d per lb, f.o.b. Whether factory directors are 'wise in accepting this price is open to question, as at least one London firm has cabled to its factories strongly advising against selling at the present prices, as they maintain that the market will probably reach 76s very shortly. However, a-

the price offering at present will permit a payout of is per jo butter-fat the directors are of the opinion that a definite figure on 'this basis is preferable

to uncertainties of consigning

ENGLISH TEXTILE TRADE

According to an expert writer in the Yorkshire (Miser-.. , the- busm---. done since 'the departure from the gold stun dard keeps the textile industry remarkably busy upon the production of dress goods, weaving and hosiery yarns, and the tops requisite for the spin. lie;;. Combing machinery capable of dealing with the finer qualities is engaged to full capacity, and the whole of the production is going freely into consumption. Tops are being spun up us rapidly as they can be produced, and there is no ground for complaint about the manner in 'which yarns are being taken up by cloth manufacturers and hosiery makers. One prominent' dress goods manufacturer admits that his firm is receiving order s not for mere hundreds of pieces but for thousands, and there is no reason

to. suppose that the position of this concern is exceptional, it would, indeed, be remarkable if one firm were s<> favourably placed while others were lacking orders.

It is acknowledged that, the greater part of the increased business i.s for the home market. The general computation is that the home trade demand accounts lor 75 per cent, of the present production. Existing orders in all departments assure extensive activity in tops, yarns, and piece goods for some months. There is, however, .some disposition to wonder what is going to happen as current orders near completion.

Will Piie home market become filled up? 'There would seem to be a good deal to "go at.” The potentialities of the home trade, indeed, as revealed by recent experiences, have created surprise. It has to be remembered that none of the current production can be attributed to the operation of the Abnormal Importations Act, which Has only just surrounded the home market with a defensive palisade. There is, in tact, a -tremendous volume of foreign wool textiles of all descriptions still jo be absorbed, and some time must elapse before 'these are out of the way. WMi-n eventual'Ty they are cleared off, and the home market is almost exclusively depended upon British production of wool mamifactmos, it is not unreasonable to suppose that mills will eontiiMe'. to be busy, having regard to what they are being pvt Hod upon to do now, when still confronted oy the competition of a vast quantity of imported cloths.

INQUIRY FOR SOUTH DOWNS A private inquiry has been made |o a Southland business man from the Malay States to see if lie could procure a small shipment of Southdown nwes an an experiment. If (.hey turned mt well the Malay syndicate could do vith anywhere up to a thousand. 'I here | s no better paying business tor New Seal and" farmers (ban exporting stud itoek of any kind. We cannot hope ,o ship extensively, but as a sideline die export trade in live- stock does lot- 'receive the attention warranted by ts possibilities.