DESPERATE POSITION

Hokitika Guardian, 10 December 1932, Page 6

DESPERATE POSITION

REVIVING PROSPERITY

(By X.)

Columns might Le written depicting the present uiscitii.rous uonuiuons 111 this, cornu try but. no geu.il purpose weui.d h© served unless some hidiaation coum .he given of the probable hues /along wh.cn prosperity may be ieestaoi.ished. In a previous article 1 endeavoured to show that existing conditions can only he relieved in two wavs.

U) Largely increasing land settlement* —prv icca:bl.y in smuU- holdings. I (2) Increasing the amount of curI r.dney’t iin circuea lion i■ n r 1 1: i. •/uoh;.-, ! Now*l.disaster ctyertookloNcA ■ "’hen the progressive land policy of the old Liberal party was abandoned, and permanent pro perty will never return until we have gone hack to this old policy with such modifications as ©xis ing conditions necessitate. With 70,000 unemployed just kept from starvation by an oppressive taxation, on the rest of the community, of £3,C00,000 a year largely borne by those who have' hardy enough for their' own need’s, the necessity for putting m many of these unemployed as possible in a position to support | themselves —at first partially, and ! eventually entirely—is one that must bo immediately faced. Schemes are now being evolved which will effect tins, 'and at the same time give relief to farmers who hold more j land than they can use, or afford to hold. The schemes have not, it is I itrre, been finalised, bpt should be, before the present session ends, and on the srundne s of this'legislation will largely depend the future prospects lof the country. , _ jU’iready some progress is beirm maid© with the', “ten acre scheme” which really covers anything from a holding of two of three acres of suburban land up to 200 acres of second cfe.es rural land!. If no mistakes are made soro© thousands of able bbdu’d men will le given the opportunity by hard work to earn an independent living instead of hanging around the towns, doing odd jobs on relief works and waiting jn Vain for positions which they once filled hut which may never again l 4 open to them. Each of these men will he assured of a’ small holdins of knd, a. tiny but comfortable little house —palatial as romnnred j with the lmts our sturdy oM miners I vised to live in—and a small grar.t to ; put up fencing and clear the lidding, a l’-o to get a cow 1 or two and some poultry, seed®, fruit trees etc.; also it iis proposed to give a grant of £1 a week to each settler until suc-h time as he can make a living, and meet intomest and sinking fund on the small car* fail outlay involved. This i is certainly sudya chauc© as has never before been offered.

It will of course he said; “What ! is the use of putting moivv people on the land when the prices of cur produce a re.; so-■ ..low. tliat the . faring' R are'now on the verge of bankruptcy ?” Well thei.first, thing to find out is what lias brought the farmers to this static? It is no doubt , directly attributable to the sensational fall in tVipcv—though iiiis hit- ‘t#i« pgstnraliists more than the- farmers. But it is indirectly due to land' speculation, and the consequent demand for freehold, causing the fanners to aoojure more lond tlia.n they were able to use to- advantage but which produced a crop of noxious weeds—and mortgages. A practical farmer told me the worst thing which ever happened to- the industry was when butterfat went up to 2is Gel per lb. This emoted a land boom—fostered by the then government—and the farmers drifted into a. position which is well nigh hopeless. They cannot for the most part meet their interest and rate obligations, and have no earthly chance of putting the-r holdings to profitable and reproductive u=e. Now these coodftions would not apply to the small settlors under the scheme which is now being evolved. 'pKe ove'seas prices will have very little effect on them. They will get a few shillings more or less for their huti'ier-fat according to market quotations, hut they are not likeJv to run cbeeo—except perhaps on the larger holding l -' l so wool prices will not offe-t them; rates and. taxes would be nr-gligjble they would have no heavy m-'v-t'Tnge interest ito meet, and their po-ition would be infinitely better than that of the average wage earner in the towns to-day. When the early settlers came out to New Ze-'bi.tid they probably never dreamed of the day when they would be absolutely dependent on the prices of their exports to make a living. They looked rather to making a home for themselves by hard work, and trusted verv j largely to primitive barter to Vxch-ajngo t-’ 1 encpmthey produced for others tliev required. To a certain extent we will haypi -topgo back to that prinitive outlook. It is no use worrying just now about the national debt of £223 .per bend of r 'oeuliitjon which ha.s been built up. The man who has nothing and cannot even support himisdlf can’t pay it, and if the Country is to pay up and mept its obligations it will only be able to do so if the number of orodnee'-s is increased. For every small sO'tler, .even if he i.s producing apparently only about suffie’ent for liis own requirements is roillv adding to the wealth of the country if only by relieving it of the taxation which his xupnort as a “relief” worker on unrerrodactive work is new en'ailing. per there is one aspect which maid not be loflt, }i ! ght of. Every extra setter on the land does not cut in on the

living of settlers already established. Of course if not wisely guided and advised there niay be a surplus of certain commodities produced which may cause a. bad slump in values. If nil concentrated fop instance on growing potatoes or strawberries, those would soon have .no value except for th e con* Burner’s own use. The matter of distribution is a very important-one, and when a large number of settlers are established on email holdings they should have the best possible 'advice by practical technical .experts a s to what they should concentrate on producing, and how their produce should be distributed or marketed to the best advantage.

That is on? of the many minor details, 'however, which require to be thought out. The major problem is how such scheme is to be financed under conditions now existing. It. is evident; (’l) That loan s from overseas cannot at present be relied on, and it i s doubtful in any case whether our overseas indebtedness should be ir*vossed with the,present, adverse exchange rate. (2) That a large internal loan could not 1 b e raised at the very low interest which"is essential to the success of the scheme while the Government and Government departments continue to offer five per cent, over fte counter for Ciovernment securities. Therefore the only alternative is to utilise internal credits (a very vague term, •’lfective to some -extent as political propaganda, but requiring very clear definition), and if so under vdint safeguards and restrictions. I will deal with this in my next and final article on this question.