“COINING MONEY”

Hauraki Plains Gazette, Volume 52, Issue 3286, 9 July 1943, Page 5

“COINING MONEY”

(To the Editor.) Sir, —When Mr A. J. Sinclair* addressed the Economic Society of Australia and New Zealand a questioner asked how the Government justified its action in pinning the dairy farmer down to a fixed price of 14.89 d for butter from August 1, 1938 to August 1, 1942 and Mr Sinclair replied that it was difficult for him to answer the question unless the audience knew the skilful manner in which the Hon. Mr Nash had parried it for several years. Now, sir, the dairy farmer is paid for butterfat (not butter) and I received from the New Zealand Dairy Company the following’ payments:—Season 1938-39, 16.45 d; 193940, 16.49 d; 1940-41, 16.45 d. The Government received 114 s 5d per cwt. for butter for 1938-39. season and had we been under the 1935 conditions and costs, the payout would have been 14.35 d butterfat. Luckily we are getting the benefit of a guaranteed price based on 124 s 3d per cwt. butter, London, and my payment was as stated above. Mr Sinclair’s company would not pay less for superfine. The following seasons the British Government bought our butter f.o.b. New Zealand at 112 s 6d per cwt. and above I have shown the payment received. This season expect the pay-out to approximate 17d for superfine. It might interest some of your readers if I give the make-up of the guaranteed price:— Owner’s work and maintenance 5.34 d Interest on capital — —3.24 d Farm labour —- — -8.84 d Total -- -- -- -- --17.42 d Less return for pigs per lb. butterfat — —- ---- —1.54 d 15.88 d The Guaranteed Price is based on the 12th. edition of the table of values compiled for the New Zealand Dairy Board, February 1, 1935, and supplement thereto dated October 10, 1935. The compilers were Messrs A. Duncan, A.R.A.N.Z. and G. M. Pottinger, A.R.A.N.Z. These gentlemen are now manager and assistant manager of the Internal Marketing* Department. Mr Sinclair’s sharemilker is another story; and one fact stands out, after paying shed expenses, half the manure costs, and 20 to 25 per cent, herd replacement he received just about half 8.84 d that is allowed for farm labour.—l am, etc., H. E. HILL. Paeroa R.D., 5:7:43.