N.Z. FARMERS' UNION.

Taranaki Daily News, 26 July 1916, Page 14

N.Z. FARMERS' UNION.

'ANNUAL DOMINION CONFERENCE. _ PRESIDENTS ADDRESS. : t{{ Th» following is a summary of tie address given by the president (Sir James G. Wilson) at the opening of the Dominion Conference at Wellington yesterday;—

In his preparatory remarks the president referred to the conferences as not only beneficial to farmers, but as a means of educating public opinion. Itcl'erriiig to the war, he pointed out that we are spending our capital at the rate of about a million a month, and yet hare withdrawn 50,000 men from the adult population. Those left in occupation are therefore receiving more for their labor in whatever occupation they may he engaged, (jreat Britain is spending five millions a day, which is circulating amongst the people, yet everything we purchase costs more. Wool, wMch was just sufficient for the wants of the world, is required everywhere for those who are lighting. The meat we produce goes now to feed the men at the front, and only the surplus goes into the trdinary channels. The consumption of cheese in the army has increased the demand enormously, and Is per pound has been reached as a selling price since the freezing process enabled us to sell our produce in Britain. With such prices for our food and clothing products, all have to pay more to feed and clothe' their families. As our bills have reached such an enormous total we must expect further taxation to he a certainty.

Our exports have exceeded those of last year on paper by six millions. Exports must always be estimates, biit imports arp exact. I should not be surprised if the actual value of our exports for the .last two years was in reality no more than ; £3,000\000. Of the miao-DM of exports, the produce from tlio land in tile year ending March 31. 1016} amounts to £30,635,719 a truly stupendous amount for a million people to take from the' land. Besides whieh the people have been fed, and, to some extent, clothed out 6f :it. Practically the whole of this has been taken from the land by sheep, cattle a.nd pigs—with tlie assistance of horses in the agricultural portions. We may safely say, I think, that not more than four millions at the outside is the result of war. We have been decreasing our imports in comparison to our spending power, so that we have a margin of twelve millions of excess of exports in comparison to imports. There are politicians who say the Government should take -from the farmer the extra six millions i.f increased value of exports which he has not got, and the nineteen million of free deposits to pay war expenses. With reference to the taxation proposals of the present war time, it is certain that the burden of them is still further to be borne by the land. The Government of the country and the safety of the individual should be assured by each paying a percentage of his earnings, as they pass through his hands. In our present case I am afraid that there will be many hardships, mostly amongst those of the farming class, who are least able to bear them. In later years, with the help of dairying, many men have put their savings into land and assumed more than usual liabilities. The mortgage tax has now been, altered so that

the income from this form of investment has to pay income fax. The suggested legislation to restrict the rate of interest would only hasten the diversion. When the time comes for renewal, the second mortgages which so many have will 'be called up, and if the rate is fixed the man will be forced to sell and the farmer will probably use his savings of a lifetime. Ho will be thrown again on the labor market. Then, again, in connection with the graduated tax, there is now a certainty of a large amount of capital being taxed twice. The Government has considered this unjust in the case of an income derived elsewhere paying taxes in the country of origin and here as well. In the ease of graduation —•which is now very heavy—the owner of the land pays graduated tax upon the total unimproved value of his hind, viz., his own interest in the land anil that of the mortgagees.. The mortgagee pays income tax, possibly at a graduated rate, upon, the income derived from the same amount. Thus the capital, is first taxed and then the income from it. The farmer is also first taxed upon his capital'in the land and then upon his income derived from it. Last year the farmers paid it cheerfully, but now that an additional 5 per cent, is added to this and a 45 per cent, tax on all profits over a certain percentage of return from capital, it certainly is conscripting wealth to a greater extent than anticipated. It would certainly he'more reassuring if the additional millions were car-marked for the payment of the war debt we owe to the British Government so long as they were not required for the expenses of our soldiers at the front. The taxation would thus go towards paying 'the expenses of the war. If the cost of living has gone up the .farmer pays it just the same as anyone else. One special feature is ihe remission of the 25 per cent, additional graduated taxes on business premises. This seems unjust, though it may be expedient. If we arc to pay all this enormously increased taxation (and Sir Joseph Ward warns us -we may have to pay more next year), what means has the country got to meet it? It is quite clear that if the produce of the land is !)0-3:irds of the exports of tlie Dominion, to restore the dissipated wealth of the world which lias gone this disastrous war, we in New Zealand must look to the production of the land to again create it, and it certainly would be delayed and much harm done if the cry of "tax the land," which from a class of the community is so often heard, were listened to bv our politicians, and undue taxation is levied in consequence. How, then, are we to increase the production? First, it is clear that the country must be made as attractive as possible. If we wish people to remain in the country we must interest them in country pursuits and life while they are young. Mr. Ilogbcn, in addressing the Council of Education, concluded with the following remark: ''Our chief wants, in short, are more enthusiasm for agricultural education on the part of the farmers themselves and adequate provision lor proper college training for the experts, both teachers and directors." Tin Union has ever had an ideal for bcttf.

Fanning anil better living for all engaged on tlie farm, and move vocatioi.n.' education. Let us all continue to striw for swell and help forward the ideal o: so educating the .young people in 1. country as to make life in the comilr. more attractive and better umlerstoo.i In Taranaki the farmers there ire so in. pressed by the necessity of working i conjunction with the boards that 'the; have subscribed, T think, £IOOO to assist in the good work, and it v v* 1 ' wat

money, which will be repaid an hundredfold, even in monetary advantage to themselves. I hope tlieir example will be followed in all the school districts, The county councils have the power to contribute out of their funds for the purpose iu the district in which they re-

The progress in rural education, while helpful, is not sufficient to immediately .restore the lost wealth to the country. It is the present-day farmer who must do that. It is a fact which has been proved that with wheat ai 5s it takes from 23 to 25 bushels to pay expenses. Anything under that is grown at a loss to the farmer.

How are we to makn the most out of the crops we grow? Oni; way is to increase the use of machinery, and also the motive power. The motive power of the future is going to be electricity. By the use of the cheapest form of motive power and. the increase of machinery, even with high wages, we may be able to cheapen the cost of crops. Dairymen are all now impressed that machinery must replace hand labor, and the number of milking machines is being doubled. Motor ploughs have not yet been perfected; but I have no doubt that in a few years we shall see them successfully doing work on farms, though on hills our old friend the horse is likely to remain. If draining is required, we must, if necessary, import machinery for the purpose. It is entirely wrong to speak of ordinary farming operations, however well conducted, as "scientific." Science demands an exactness which is unknown in our ordinary work. But he would be a fool who did not take advantage of the teachings of science in connection with liis [arming. Do we v, .int research and investigation, the teachers and the demonstrators? I think we do; and will it not, if we arc receptive enough, enable us to produce more from the land, and, therefore, restore to our Dominion ouv lost wealth? In the Agricultural Department we have now a number of trained men who have the capacity at any rate for the investigation of many problems by which we .would be benefited, if solved. What do we do with them? We shut them up in offices in Wellington to answer correspondence and attend to details which might be well left to clerks. They should be on a farm where they would be closely allied to nature instead of "poring over miserable books." The Director of -Agriculture, his agriculturist, horticulturist and plant breeder, the biologist, the chemist and a bacteriologist (to work out the problems in connection with dairying) should all be stationed on a central farm. They would be training assistants who eventually would act as demonstrators." These demonstrations could be given in hundreds of places all over the Dominion at very small expense and with much greater benefit than expensive experimental forms in one or two localities. Possibly if the growth of lucerne were general, the land might keep another million sheep, or at any rate solve the difficulty dairy people have in summer to keep the flow of milk up, and it might easily mean the export of another half-million pounds worth of butter or cheese. Again, the use of lime is receiving much attention, and in some localities it has shown splendid results.

We have got the men, let us urge that they be given the opportunity. We have the farm, and all we want is housing accommodation, a laboratory, a hall, etc. From this central farm the whole of our experimental work and demonstrations could be worked, supervised by men appointed under the Director in the various districts and their work inspected by him from time to time. There is just one matter more I would mention. A movement has been initiated recently to establish a Forestry League, the object of 'which is to educate public opinion on the necessity of conserving our rapidly-diminishing forests, and encouraging the planting of trees on the farms and waste lands of the Dominion. The Valuation of Land Act was amended in 101-2 to provide that all plantations, whether native or exotic, should be treated as improvements, and as such, these are now exempt frm taxation. The Valuer-General assures us that in all cases where land is exclusively used for growing trees, or used to such- an extent as to effect its value as workable kind, that land is specially considered in the valuation. In a speech made by Mr. Kirkby he said that it would be inconvenient to be without banks; but it would be death to be without food. Farming is an indispensable, honorable, serviceable calling, which lies at the foundation of success, prosperity and government itself. The strength of our nation is in the development of agriculture.

The Conference discussed a Land Aggregation remit urging the Government to take more effective measures to prevent aggregation. Most speakers considered the present legislation inadequate. The president read a statement by Mr. Massey to the effect that there was already ample provision to prevent aggregation. The Conference carried an amendment expressing satisfaction that there are ample powers to prevent the. aggregation of land where desirable.