THE CAMPAIGN OPENS.

Hauraki Plains Gazette, Volume XXXIII, Issue 4482, 20 October 1922, Page 2

THE CAMPAIGN OPENS.

ADDRESS BY CAPTAIN COLBECK. THE FARMERS’ PARTY. The opening address in the election campaign in the Ohinemuri electorate was delivered by Captain F. Colbeck, the Farmers’ Party candidate, in the Central Theatre last evening. His Worship the Mayor, Mr P. E. Brenan, occupied the cjiair, and briefly introduced the speaker. There was only a moderate attendance of the public, but a good reception was accorded the candidate, and he was applauded several times during his address, while there was' a complete absence of interruption.

In commencing 'his speech Captain Colbeck explained to His hearers that he laid no claim to being an orator; in fact, he said, he was about to commence his maiden political speech, and 'he asked the gathering to bear with him in his efforts. The reason why he was standing for Che Farmers’ Party in Ohinemuri was explained by the speaker. He said the general desire was to have the farming community better represented, as for some considerable time past the party had asked for special legislation, but without response from the Government. But lately there had been some extraordinary changes made by,the Government for the betterment of the farming community, and many matters have been put right due, no doubt, to the pressure brought to bear on the Government by the Farmers’ P.arty. There had never been sufficient unanimity among the farmers —they Ihad all been in different camps, instead of one united farmers’ party. The farmer should be given a chance to vote for his own party, and that was' the idea of the formation of a Farmers’ Party to-day, said the speaker. He had no desire to get in the limelight, he said, but he had been an advocate for a farmers’ political party for some twentytwo years, and it was at the unanimous wish of the executive of the Farmers’ Union in Auckland that such a party should be formed, and the proposal was submitted in turn to each branch of the Farmers’ Union throughout the district, with the result that Mr Ross’ .and the speaker had been asked'to go to the poll in the interests of the farmers. This wish, he said, was absolutely unanimous as far as Ohinemuri was cohcerned. The farmer must have direct representation continued Captain Colbeck. It was all very well in days gone by for the farmer to have done everything for himself, but to-day it does not do, and 'he has to fall back for help on the business organisations of the towns. This was a bad system? he said, because it only left loopholes for trusts and other organisations. However, it was quite a mistaken idea to think that the farmers’ troubles were all due to the producers in London, where the best and most, efficient cosideratipn was accorded the primary products,'and was equal to anything in the world today.. A Country Party, said the speaker, was most necessary to unite the'various parties under one flag to .keep a special eye on farmers’ requirements', to voice the farmers wants in the House, to oppose all legation hurtful to farmers. The four planks that were particularly desired were (1) an agricultural bank, (2) general pooling legislation, (3) shipping legislation and (4) retrenchment, he stated. If the farmer was prosperous, then the Dominion would be prosperous. The farmers’ troubles to day were 'undoubtedly due to the cost of production, labour, freights, taxation, rates' of interests, etc. The speaker then proceeded to quote figures showing how the cost of materials, labour, etc., had increased, most noticeable being the railway freights on butter from Frankton to Auckland, which had risen from 13s per ton in 1914 to 34s 5d per ton in 1922- Also wages were high, he said, for in 1914 the wages cost of butter manufactured was £1 15s 5d per ton, whereas' in 1921 it had increased to £3 5s 9d per ton. With regard to exchange values, continued the speaker, his party was not opposed to high wages, because in normal times high wages meant high prices for all the farmer could produce, but the chiei concern was pot so much whether, say, butter was Is. or 2s per lb, but whether steel, food, clothing, and household furnishings’ were on a parity of exchange. We must have legislation and a certain amount of compulsion, he said and it was high time the Country Party took a hand in these things. These gigantic increases were not new to other countries, but parties had been formed for the betterment of the farmers. In Canada the Farmers’ Party controlled five out of nine States, and in Australia also huge success had been met with. We only want the Government to hold fast and leave us alone, he continued, and we were prepared to fight alone. It was very easy to criticise ; anybody could do that, he s,aid, but what his party wanted to dp was hot to fix prices, but to improve the methods of marketing, to co operate in buying, to keep down the costs Of production, and to cheapen means of transit.

TAXATION. Outling his views, on taxation, Captain Colbeck said they could not expect to pass through five years of war and escape taxation but he maintained that taxation Iliad increased beyontLall reason, and he quoted figures showing that the taxation had increased per head from £5 10s Id in 1914 to the enormous sum of £l9 17s 2d of the present day. The war could hot be blamed for the whole increase of taxation, which, m the opinion of the speaker, was very Largely due to the reckless extravagance anJ expenditure of the people. Although the revenue had been increased by £2l 000,000, the permanent charges had been increased by £6,642,481. Taking 1910 as a basic year, when the percentage of expenditure was 4per cent., the speaker said t)iat in 1921 the percentage had increased to 212 per cent. The railways had cost £4O 000,000, and although fares had increased by 25 per cent, and fares' by 40 per cent, they did not pay their way, arid necessitated at least two-thirds pf the land tax going to

pay interest on the railways. Again, he continued, the Post apd Telegraph Department had cost £6,000,000, and now they were not even paying working costs- He quoted figures showing how the management expenses in this department had increased from £Bl,000 in 1914 to £215,000 in ,1921. The staff, he said, in 1915 was 8584, and increased to 10 681 in 1921, yet .he decrease in business of the Department was some £600,000. LAND TAX. .

In touching on the Land Tax Captain Colbeck said it had.,been stated by MF Massey that there had been no increase, but the speaker gave a.n instance and quoted figures showing large increases under this heading. The burden of taxation was referred to in connection with the income, tax which was payable by manufacturing companies, and the speaker showed by figures the weight of the burden borne by such companies, and how large a factor excessive income tax on manufacturing companies’ was keeping up the cost ofl living. He also thought that income tax should be assessed in New Zealand on an average taken every twp or three years. POOLING LEGISLATION. Captain Colbeck referred briefly to general pooling legislation, which, he maintained, w,as absolutely necessary to the welfare of the country and the regulation of prices in New Zealand as well as on the Hpme markets. They were up against very strong opposition in the way of vested interests, he said, as had been shown in the meat and butter pools. The opposition o>f farmers to pools was due largely to propaganda work by vested interests and tot.al lack of knowledge as’ to pooling methods. It was common knowledge he said, that the American Meat Trust had a sum of some 30 millions to be used as a fighting fund against pooling, if necessary. The speaker said he understood that the local dairy company had “backed a wrong horse” and had got into financial difficulties, and as soon as that had happened many farmers were prepared to break away from the concern, contrary- to all true aims of cooperation, and a very foolish move to make. He sa’d vested interests were out to smas.i co-operative concerns every time, and unless pooling legislation was given the country vested interests must surely win out. The speaker said his party had been barracking Mr Massey for general pooling legislation, and hopes were entertained that the country would yet have it. Referring ‘o shipping, lie said it was shown by figures, which he quoted, that the shipping combinations’ had paid handsomely, and that fares and freights had. increased beyond all reason.

AGRICULTURAL BANKS.

Dealing with the establishment of agricultural bapks, the speaker said that the project was not a new one,, and that banks Ihad beep in existence for over 100 -gears' in Germany, Bulgaria, and United States of America, and had been run with huge success. The farmer was badly in need of protection. There was at present some £2,200,000 out on registered mortgage, he said, and investors had been protected by the Moratorium Act, which, however, would expire in December, 1924. An agricultural bank would be purely a mortgage bank, and there would be no current accounts. Loans, he continued, would be made on land and stock and crops, and the terms would be long-dated. It was proposed that when a man applied to an agricultural bapk for a loan it would, of course, have to be on first mortgage, and he would receive an advance of 60 per cent, to 65 per cent, of tihe capital value. The bank, he said, would immediately issue bonds, and they could be sold at par or under, according to the financial state of the market. The person receiving the loan would in 34 years have fully repaid interest and principal, as in the Government Advances to Settlers scheme. A farmers’ valuation Committee would be set up to report on a man’s property pn receipt of an application for an advance, and it was absolutely safe L tp assume that provided a farmer had sufficient security he would unquestionably receive his money. The main object to be considered in the formation of an agricultural; bank, said Captain Colbeck, was to provide money, or credit, as cheaply as possible tp farmers. A farmers’ bank could eventually quite easily carry on every form of banking connected with its operations, such as receiving deposits, payments, by cheque, etc. Such a large number of New Zealand farms were mortgaged, and such mortgages, when not more than half the value of the farm, could be paid off, if desired, by the farmers’ bank.

Ip conclusion'Captain Colbeck said that the reason why a Farmers’ Party should be formed was because there ,had been no real attempt a: Government economy. No attempt had been made to put railways and post offices on a business footing, he said, and the million pounds loss on the railways alone would eat up twothirds of the land tax. He said that farmers’ requests and remits op matters pertaining to shipping, agricultural banks, labour laws, and the embargo on hides had been absolutely ignored. He was prepared tp admit that a great deal had been done by the Government recently, but if matters had received consideration earlier than a year ago a fanners’ party would never lhave been necessary. He deplored the lack of loyalty among farmers, and instanced how his own dairy company had turned him down and had decided to form a committee to work for the opposition. After 22 yeai’o' service in the interests of farmers, he said, he was satisfied that they were not loyal, and he was heartily sick of them and would be only too glad to get out of politics. Asked if he was going to the poll, Captain Colbeck replied that he was sorry he could not give a definite yes dr no.

The matter of land values and valuation mentioned by Captain Colbeck in the course of his address is unavoidably held over until our next issue.