“UNKEPT PLEDGES”

Sun (Auckland), Volume 1, Issue 105, 25 July 1927, Page 7

“UNKEPT PLEDGES”

Farmers’ Union President Makes Vigorous Attack on Prime Minister

RURAL FINANCE

DEFORE an enthusiastic meeting of farmers at Putaruru U on Friday Mr. W. J. Poison, Dominion president of the New Zealand Farmers’ Union, launched a vigorous attack on the Government, charging the Prime Minister with failing to honour his pledge to the speaker as a member of the Royal Commission on agricultural finance.

r * Colson stated the country was in a far more critical position than was realised, and the only section not sufiering was the financial circle. The Lank of New Zealand last year made practically as much profit as the Bank of England in the best year of its history, and financial institutions were squeezing the life-blood out of the country. He felt, however, that the Government was getting scared and the farmers, through their united front, were nearer than ever to getting necessary financial assistance. Farmers were compelled to live on their capital now and the banks had hit them while they were down by raising the bank rate. The Royal Commission on agricultural finance had produced a complete report—such as had never been made before—and it was recognised by leading economists the world over as a standard of its kind. He emphasised that the report was a unanimous one. Mr. Coates had pledged his word that if the commission brought back a unanimous report together with legislation, he would put it through. He had failed to do so, and excused himself by saying the commission had arrived back too late. Mr. Poison denied this, stating that the commission had cabled Mr. Coates saying it was ready to return, but he had sent them on to other countries. PROPOSALS NO USE The present attenuated proposals of the Government were of no use to the farmer. The Hon. Downie Stewart had sneered at the speaker’s finance, and had suggested he was not fit to sit on the Rural Credits Board. At no stage of the proceedings during the last five years had Mr. Stewart helped in getting the farmers finance through. lie had been hostile all that time. However, as a result of an interview between himself and the Government, Mr. Stewart had been forced to make the announcement that

the Government was going to issue bonds, and thus he was now going to do what he previously stated was a ridiculous proposition. The amount available was not large enough, however, and the valuation was too conservative, and farmers would not be satisfied till the report of the Royal Commission was adopted. Cabinet was not concerned with helping the farmers so much as with finding out how much they could dodge, and how much farmers would be satisfied with. IF IT WERE FAIR PLAY If farmers stood together they would get the whole lot. If the Government played the game the rate of interest to the farmer should not be higher than the Government paid itself. Agricultural bonds would, in reality, be Treasury bonds, but the Government was going to put across the face of their own cheques the fact that they didn’t going about saying that they were guarantee them. But they could not get away from the fact it was their own bond. Government 55 per cent, bonds sold in Australia at £lO2 15s, and the agricultural bonds should sell around that figure. He knew they could sell the bonds in America easily, but for various reasons it did not favour that course. Everywhere else in the world agricultural bonds issued by the banks were regarded as the finest security, and in some countries were preferred to Government securities. He could not disclose what had taken place recently, but he thought the Government’s bluff had been called. He strongly urged, however, that farmers should unite and present a solid front, and be -prepared for any eventuality. The meeting, which was the largest and most enthusiastic ever held in Putaruru, unanimously decided to demand the adoption of the Royal Commission’s report.