TO-DAY’S PROBLEMS.

Taranaki Daily News, 20 May 1921, Page 5

TO-DAY’S PROBLEMS.

FINANCE AND DAIRY PROSPECTS. BURDEN OF HIGH FREIGHTS. I believe that dairy produce wiu realise a good price next year, but not the present price,” deelured Mr. O. Hawken, JI.P,, at yesterday’s conference of the Farmers’ Union at Hawera. There had been a great deal of talk about high land values, added Mr. Hawken, but he was satisfied that many people made the mistake of watching land values and overlooking the fact that over-trading had reached a very great height in New Zealand. The difficulties in the country were not caused by the high price of land, but because the expenditure' was so great that it had taken all the free money in the country to pay for the goods imported.

The real difficulty with fianance, added Mr. Hawken, was that the country was spending more than it was making, and he was rather concerned in some ways, because the farming community (excepting the dairy farmers) had had to face the music and had to draw in their expenditure a good deal. If wages and expenditure were to con-, tinueon the old scale it would be some time before the turn of the tide came, and his advice was that everyone should meet the position by spending as little as possible and by sending as little money as possible out of the country. In this connection he desired to refer to the serious position which was arising through so much money being sent out of the country for coal, whereas, with increased production, none of that money need be sent out. Referring to shipping, Mr. Hawken said he was a member of the Producers’ Committee, and there was no doubt in his mind that the charges of shipping to the Old Country were excessive and almost ruinous. In some cases the freight was so high that it did not pay to send produce Home, this being particularly so with meat at the present time. The Producers’ Committee had gone into the position very carefully, and after examining the matter had come to the conclusion that the companies’ charges had gone up all round to an amazing extent, and authorities who gught to know said that the present contract, which was signed some months ago, was not particularly excessive in view of these charges which the companies had to meet. But it was not only the charges to the Old Country, which were so very high, but the charges for shipping between the North and South Islands also gave concern. Oats, for instance, were sold for 2s a bushel in the South Island, yet in Taranaki they cost ss, and potatoes, which were about £3 10s a ton in the south, cost about £9 in Taranaki. It was a case of everybody getting a little too much, and it was up to them all .to examine all charges. If things were brought to a proper footing it would not be long before matters would be righted. New Zealand was a good country provided they managed their affairs in a wise and careful manner.