A Disturbing Influence in Politics Menacing Sound Constitutional Government and Helping The Reds.

Putaruru Press, Volume II, Issue 58, 4 December 1924, Page 1 (Supplement)

A Disturbing Influence in Politics Menacing Sound Constitutional Government and Helping The Reds.

Certain earnest minded but nevertheless (as “The Newsletter” believes) misguided men are at work in the Auckland Province in the endeavour to form a Farmers’, or Country Party in polities m the belief, apparently, as stated by their leader, Mr. A. A. Ross, at Hamilton, early in October, that they will be able to exercise a greater influence upon the politics of the country and to serve their own interests and those of the farming community better than the farmer-politicians are doing under the existing party system. AUCKLAND MOVEMENT ONLV. The movement, it may be pointed out, is confined to the Auckland Province, where an agitation has been conducted in its favour for many years past with little or no success, the Farmers’ Union, outside of Auckland, having repeatedly rejected overtures made by those agitating for the formation of a Farmers ’ Party to take the field politically. Farmers, like other sections of the community, are divided in both politics and sentiment. As a class their independence is markedly apparent. They include in their ranks Liberals, Reformers and Labourites. The earlier advocates of a Farmers’ Party in the Auckland Province were almost wholly of the Seddonian-Liberal school of politics, and it may be said, with little fear of contradiction, that in the earlier stages of the movement, the underlying motive was the desire to capture the farming vote, which largely favoured the Reform Party. THE COUNTRY PARTY’S CLAIM. At Hamilton, on October 3rd, Mr. A. A. Ross, who acts as leader of the Country Party, referred to the formation and doings of similar parties in Canada, the United States and Great Britain, alleging that they formed part of a world-wide movement which has “taken a firm hold in practically every progressive democratic country in the world.” Mr. Ross might have added —but he didn’t —that, in Australia, it had proved a disrupting force in. polities, which was fast handing the Commonwealth over to the “Reds,” as is shown by the fact that, in five out of six States, the Government is in the hands of Labour, simply and solely because of the splitting of the moderate vote by Farmers’ or Country Party candidates. In Canada, again, he might have added —but again he didn’t—that the farmers are beginning to recognise they made a serious mistake in forming an Independent Political

Party, and that they are returning to their old allegiance as Liberals or Conservatives. WHAT HAPPENED IN CANADA. On this point we have the testimony of a distinguished Canadian citizen, Sir John Willison, a recent visitor to Australia who, ill the course of an interesting address on Canadian polities in Sydney, in June last, strongly emphasised the desirability of a return to the two-party system, pointing out that strong, effective government was difficult, if not impossible to obtain by any other method. He went on to say that he himself was a “strong supporter of the two-party system, since all his thinking, reading and political knowledge had led him to the belief that it was the best ever devised for the government of a free country.” Sif John Willison went on to tliere came into the House of Commons a Farmers Party, lint this new order was short-lived, for the farmers’ representatives were fast merging themselves in the other parties, and, in Ontario, the new party had already practically disappeared,. while in all the other States except, perhaps, Manitoba and Alberta (where it controlled the legislature), it was fast becoming indistinct in outline. In a country like Canada, covering so vast an area and including so many classes and interests, governmental representatives were bound to consider the views of all sections of the community, and could not confine themselves to acting for only one part of it. Although Canada was largely an agricultural country, the farmers had come to the conclusion that it was impossible for them to unite in this exclusive fashion.” A SERIOUS POSITION. Are the circumstances of this country so dissimilar to those of the sister Dominion that we should lightly disregard its experience, and support a line of action which its farmers have found undesirable, and may we not say also —unprofitable? Does not the advent of a Farmers’, or Country Party in this Dominion, portend greater dislocation in politics and constitute an actual menace to stable government? There are already three political parties in the 'field in this Dominion—Reform, Liberal, LiberalLabour and Labour (the latter of the “Red Fed” variety, in greater sympathy with the man who boasted that when he put his hat on his head it covered all his earthly possessions, than with the sober, industrious worker who has a home and a stake in the country as a small freeholder). There

is surely enough vote-splitting - likely to occur amongst those three parties without a fourth obtruding itself, and so dividing the moderate vote as to make it impotent against the extremists who are out to capture the government of the country. WHAT THE VOTING SHOWED. The voting at the last General Election (1922) showed conclusively that the great majority of the electors were anti-socialistic in their views. The aggregate of formal votes recorded was 611,444. They were distributed as under: — Reform Votes Liberal-Labour 17 9,182 Labour 15 2,32 9 Total 611,444 The majority was clearly against Labour, as the Reform and Liberal votes, between them, numbered 459,115, thus placing the Labourites in a minority of 306,786. The splitting of the moderate vote gave the extreme Labour Party several seats, and it is a moral that, with four parties in the field, the Labourites would achieve further successes. Would that sort of thing help the farmer who is crying out for further reductions, seeing that Labour, and a section of the Liberals also, have strenuously opposed reductions in taxation, and have urged heavily increased expenditures which can only be met from taxation revenue? THE POSITION IN AUSTRALIA. Mr. Ross referred to the Commonwealth Government in which the Country Party holds, or rather held, five out of the eleven seats in the Cabinet. But, once again, Mr. Ross omitted to mention, although he might well have done so, that Dr. Earle Page, the leader of the Country Party, and the greater number of his colleagues and supporters, have come to recognise the folly and danger of continuing to divide the moderate vote, and have joined hands in a Pact to unitedly resist the inroads of Labour which, in Australia, is dominated by the “Reds.” Mr. Ross further omitted to tell the Hamilton people that the five Labour Governments, at present controlling the affairs of Queensland, South Australia, Tasmania, Victoria and Western Australia, are all holding office on the minority vote, as the result of the splitting of the moderate vote by Country, or Farmers’ Party candidates. Seventeen Labour representatives hold seats today in the New Zealand House of Representatives. Six of their number were elected because the moderate, or anti-Labour, vote was split for them by their opponents, whereas the latter, by working unitedly together, could easily have held the seats against them. With four parties in the field, the odds would be all in favour of the Labour candidates, and here it should be remembered that the Labour Party has announced its intention of contesting every seat at the next General Election.

THE COUNTRY PARTY’S POLICY. We look in vain through the very full report of Mr. A. A. Ross’s policy speech, recorded in the “Waikato Times,” of October 3rd, for any indication of a statesmanlike attitude in regard to the management of the country’s affairs. In the main, the speech consists of a long drawn out jeremiad, the burden of which is contained in a one-sided array of facts and figures which would seem to imply, if one did not know better, that the country is fast going to' the dogs, under the allegedly oppressive rule of a Government, which has a farmer in the person of the Prime Minister, the Rt. Hon. W. F. Massey at its head, and associated with whom are six other farmers holding Cabinet rank, namely the Hons. R. F. Bollard, J. G. Coates, D. H. Guthrie, A. D. McLeod, W. Nosworthy and Sir R. Heaton Rhodes. These gentlemen certainly know as much, and probably a great deal more, about farming than Mr. Ross or any of his colleagues. Actually it has been charged against them by the Labour Party, not once, but again and again—that they have been more anxious to help the country than the town, and that the farmers have received greater consideration at their hands than the workers. That is the stunt worked by the Labourites in the town and cities, although, when they set out to woo the farming comunity, they put it the other way round, and profess that their hearts bleed with pity for the poor working farmer, whom they say is so shamefully neglected by the Government. CASTING GLOOM AROUND. Dealing with production, for instance, and lamenting over the alleged fallen fortunes of the farmers, Mr. Ross quotes figures in the endeavour to bolster up bis contention that production has fallen off, but in his speech, so curiously devoid of any indication of the brighter side of things, as shown by the increased trade of the Dominion, etc., it is noticeable that everything is omitted that would in any way lighten the gloom with which Mr. Ross envelopes the farmer’s lot, nor does he give the least indication that, where production has decreased in one direction, it has increased enormously in others. A country which, with so small a population is able to show for the last financial year a total trade of £96,054,362, with an excess of exports of £7,250,850 over imports, can hardly be in the impoverished state Mr. Ross apparently conceives it to be, especially when it is remembered that more than 95 per cent, of the exports are the direct products of the soil, and that 12 years ago the total trade was only £42,747,155—1e5s than half the present day total. Taking the export trade alone, the exports m 1912 only amounted to £21,770,581, whereas last year they totalled £51,652,606. No other country in the world is able to show such a trade per head of population as New Zealand. It is absolutely the highest on record.

Mr. Ross has apparently gone to the Year Book for the figures he gives in support of his statement that production is on the decline. But, if he had looked to the export tables on page 260, he would have found this note : * The main feature of the period has been the great advance, relatively and absolutely, of butter and cheese, the export of which has increased beyond ail expectations, viz.: from £1,513,065 in 1903 (the total was £3,769,202 in 1912) to £19,365,713 in 1921. Exports fell away during the past year, only £13,728,404 being credited to these two important items. Other classes of pastoral produce have also increased to several times their total for 18 03 and timber shows much the same result. For the calendar year 1923 the butter and cheese exports were valued at £17,659,597, against £3,769,202 in 1912. Taking' the main lines of agricultural produce the increase in production during the twelve year period may be seen by a reference to the following export values for the years 1912 and 1923: —

These figures certainly do not warrant the pessimistic outlook Mr. Ross adopts. It is noticeable that he talked in the same lugubrious fashion of the increased values being largely due to the higher prices being paid for our primary products on the Home markets, but it is evident they point to a largely increased output. Taking the two items of blitter and cheese alone the increases were:— 1912 1924 Increase cwt. cwt. cwt. Butter exports 378,117 1,250,110 871,993 Cheese exports 577,070 1,441,460 864,390 Wo cannot, however, follow Mr. Ross through all his misleading statements and perverted use of figures. He drew a melancholy enough picture of the conditions allegedly prevalent where the farming community is concerned, and left his hearers to infer that the Reform Government was alone responsible for the very unfortunate position in which many farmers find themselves placed to-day. But, with it all, he said nothing of what the Government has done during Mr. Massey’s twelve years of office to help the rural producers. THE OTHER SIDE OF THE STORY. No Government that has held office in New Zealand has ever done more to assist the working farmer and the producers generally than the Government headed by the Rt. Hon. W. F. Massey. It may be truthfully said of that gentleman that he has not only laboured zealously and unselfishly, but almost

incessantly, for their good and that of his feEow-men generally during his long Premiership. Here are a few of the things by which the rural producers have benefited as the result of the Reform Government’s legislation and administration: —

THE FREEHOLD SYSTEM STABILISED. The .Land Laws have been liberalised with a big extension of the freehold principle on a thoroughly sound basis, much to the benefit of the smaller class of freeholder. During the last three years of the Liberal Administration dating from March 31st, 1910, to March 31st, 1912, 286,571 acres were either purchased for cash, selected on deferred payment, converted from leasehold to deferred payment, or from leasehold and deferred payment to freehold by 2 007 selectors, the average holding thus converted or freeholded being 142.78 acres. During the three years ended March 31st, 192 4, 3526 selectors purchased, or obtained the right to the freehold under similar conditions of some 27 3,274 acres. Tiie average per freeholder was thus 77.5 acres under the Reform Government, against 1412.78 acres under the Liberal Administration. The significance of these figures is unmistakable. The Reform Government has catered for the interest of the small freeholder. It has given the man on the land every reasonably possible facility for obtaining the freehold of his holding. GRAZING LESSEES’ RIGHTS PROTECTED. In connection with the subdivision of grazing leases provision has been made by the Government for the protection of the lessee’s rights to all his improvements, and for his occupation of such allotment as he may select from the subdivision of the lease for 21 years, with the right of perpetual renewal for further terms of 21 years. PURCHASE TERMS MADE EASIER. To enable men of limited means to more easily obtain the freehold of either Crown or Settlement lands, the terms of purchase have been liberalised, by extending the time during which lessees may put off the payment of their unpaid purchase money from 10 to 2 0 years. NATIVE LAND LAWS LIBERALISED. The Native Land Laws have been remodelled and the acquisition of Native Lands made easier for intending settlers, while the relationships between the pakeha and the native have been placed on a much better footing. FINANCING THE FARMERS’ PRODUCE. During the war Mr. Massey made arrangements with the Imperial Authorities for the purchase, not merely of the farmer’s beef, which was all the Home Government wanted to buy, but also his lamb, mutton, wool, butter, cheese and other produce, thus assuring to him a certain and safe return for his labour. £100,614,819 PAID OVER. The actual sum thus paid over to the farmers of the Dominion during the war amounted to £160,614,819, and it may be safely asserted that, but for the arrangements thus made, very little of the farmer’s produce would have found a sale outside of the Dominion.

HOW MORTGAGORS WERE PROTECTED. One of the earliest measures passed by the Government after the declaration of war was the Mortgages Extension Act, giving protection to mortgagors

against the calling up of the principal sum secured by mo'rtgage without the leave of the Supreme Court during the war. The Moratorium, which was thus established, was of undoubted assistance to many hundreds of farmers during the war period and since.

LAND AND INCOME TAX EXEMPTIONS. The Reform Government exempted land from taxation in all cases where it was mortgaged up to ' £6,000 in value, and reduced the tax between £6,000 and £B,OOO. Under the Land and Income Tax Assessment Act of this year, the Mortgagor receives further exemption up to £B,OOO, with a reduction of the tax between £B,OOO and £IO,OOO. Farmers’ Income Tax imposed during the war as a special war tax was abolished last year.

THE FARMER’S WIDOW HELPED. The Reform Government, with the view of helping widows, carried legislation empowering the Commissioner of Taxes under the Land and Income Tax Assessment Act to deduct from the rateable value of a widow’s property a sum not exceeding £3,5 00 in assessing such property for Land Tax.

TAXATION REMISSIONS. While heavy taxation was necessary as a result of the war, the Government maintained taxation only on the higher scale of incomes, allowing generous exemption in the case of married men with families, or dependants, so that incomes up to £450 per annum were in many cases exempt from taxation. It has since abolished the super-taxes on land and income and granted rebates to the extent of 15 per cent, in the Land Tax.

HELPS TO AGRICULTURE. The Board of Agriculture established by Mr. Massey in the early years of his Administration, has watched the interests of, and rendered valuable service to, the farming community by its activities, and been of material benefit to the rural producer. The Agricultural Instruction Service established by the Government has had its Agricultural Instructors co-operating with the Farmers’ Union in all the main producing centres of the Dominion, disseminating useful information both by means of correspondence and direct contact with farmers in meetings, outdoor demonstrations, field days, and illustrated addresses, and also in promoting crop-growing competitions amongst the boys and girls attending school. Courses of instructions for farmers by means of special classes have been held annually at Ruakura, and Weraroa, the average number attending Ruakura being 100 and at Weraroa 80.

ASSISTING THE DAIRY FARMER. The Dairy Instructors of the Dairy Division of the Agricultural Department have rendered valuable assistance to Dairy Farmers, in advising them regarding the improvement in the quality of their milk and cream by better methods of handling, while they have also assisted in the testing of the milk yield of dairy cows, both in stud herds and in the ordinary dairy farm herds, as a result of which the output of dairy produce has increased considerably. The Veterinary Officers and skilled Inspectors of Stock have given much of their time to advising and assisting farmers in the prevention and treatment of animal disease. Specially trained experts in swine husbandry and wool growing, wool classing, etc., have also, under Governmental instructions, given much of their time to the service of the farmer.

THE FRUIT GROWERS’ HELPED. Legislation has been placed on the Statute Book increasing the facilities for the establishment of cold

stores for fruit and for fruit-canning works, by extending the amount which may be advanced to fruitgrowers for such purposes from £3,000 to £9,000. To further help the development of the fruit industry by rendering assistance to the export trade, the Government guaranteed a minimum nett return to the growers, and Government officers supervise the grading and packing of the fruit.

BUTTER TAX LEVY REFUNDS. In connection with its efforts to keep down the cost of living, the National Government, during Mr. Massey’s absence in England, imposed a levy by way of tax on butter exports. On his return to New Zealand Mr. Massey made arrangements for a refund of the tax levy. Payments made on that account as subsidies to the dairy farmers amounted during the years 1919/20, 20/21, 21/22, and 22/23 to no less a sum than £837,470.

THE WHEAT GROWER ASSISTED. The Government assisted the wheat-grower, while such assistance was regarded as necessary, by guaranteeing him a minimum price for his wheat, thus materially assisting the industry in which he was engaged, and, to enable the millers to supply flour at commensurate rates, flour subsidies to the amount of £1,024,810 were paid over between the year's 1920 and 1922/23.

MAINTAINING MANURE SUPPLIES. By the Nauru and Ocean Island purchases, Mr. Massey negotiated a practically inexhaustible supply of phosphatic manures which has been provided for the farmers at a much cheaper rate than would have been possible under other circumstances.

PROTECTING THE FARMER’S POCKET. By establishing the Meat Control and Dairy Control Boards, the Government has enabled the producers to provide for the marketing of supplies under improved conditions, with the result that sheep farmers, graziers and dairy farmers have received material benefit from the reduced shipping and insurance charges, and the better prices secured for their produce under the new marketing scheme. The Meat Producers’ Board has saved the farmers over a million sterling in freights alone since it was established. ADVANCES TO SETTLERS. To these and many other methods by which the Reform Government has studied and cared for the farming community must be added the assistance given to settlers through the Advances Office, from which loans totalling £11,761,165 have been made through the Settlers’ Branch, out of a total of £20,904,311 advanced by the Advances Department during the 11 years ended March 31st, 1924, the advances being as under: To Settlers 11,761,165 „ Workers 5,171,561 „ Local Authorities 3,971,585 £20,904,311 Further advances made up to June 30th last totalled £1,106,635, of which settlers received £561,350, the workers receiving £475,360 and the local authorities £69,925. For the further assistance of farmers the Government has since been making advances to farmers at the rate of £700,000 per month.

1912 1923 £ £ Wool 7,105,483 10,904,658 Frozen Meat ...... 3,909,569 8,855,438 Butter 2,088,809 10,689,200 Cheese 1,680,393 6,870,397 Tallow 684,739 785,668 Hides, skins, etc. 1,091,871. 2,379,536 Wheat 95,702 968 Oats 483,756 78,775 £17,140,322 £40,564,640