The Temuka Leader. SATURDAY, MAY 3, 1879.

Temuka Leader, Volume 2, Issue 142, 3 May 1879, Page 2

The Temuka Leader. SATURDAY, MAY 3, 1879.

Some three or four months ago we gave our farming friends warning that they were not to expect an advance in the price of wheat then ruling—viz., three shillings per bushel. This displeased a good many —some even going the length of saying we were farmers’ friends. It is not only disagreeable, but painful, to have to tell a man he is going to lose a whole twelvemonth’s labor and toil, yet it is no proof of unfriendliness that one who reads the signs of the times gives it as his opinion that cheap prices must rule for some time. Our long experience and study of the grain markets of the world enables us to speak on this subject with some degree of confidence, in our own judgment. When we gave this warning it was after careful study of the subject, and acting on the principle that two and two make four, we made up our minds that wheat could not rise in the English market. The latest report of that market confirms onr opinion— unfortunately for the country farmer. Many causes, besides the large increase in the year’s production, lead to this result. Those who understand the grain business know that it is customary in Europe, particularly in England, for speculators in grain to store millions of bushels when prices are low, and hold on for years if need be, that they may realise a profit. This was the position of England and other countries in Europe some five or six years ago. Since then prices of wheat reached up to a very high point.' Then was the time for grain brokers to realise, and they did it, and to good purpose too. A shortcoming of the production year after year made a drain upon the stores which three years ago were nearly all cleared out at a high figure, the result being that a keen demand for foreign grain sprang up. During the last two seasons the producers, stimulated by the high prices, went in heavily for growing this cereal, with what effect is now not only too well known, but felt, by every grain-grower in the world. Over production is now one of the causes of the low price prevailing. In England and Scotland for some years all the energies of the farmers were devoted to the raising of stock ; the price of meat ran up so high and so rapidly that nothing paid like fat cattle, sheep, etc. This led in turn to the various nations and colonies devoting their time to the study of how to convey meat in a fresh and wholesome state to the English

market. It is needless to say that in this, as in almost everything else, our Yankee cousins came off the victors. It is a fact that many of the tables of Englishmen, even of the higher classes, are now supplied from New York and other American cities with fresh meat every day. This has been going on for some time —the Yankee underselling the English producer. This in time led to the English farmer turning his attention to grain-growing, now the, to them, only paying industry connected with the cultivation of their land. In this they were not alone ; America put in a spoke here also, the consequence of this united effort being that in the short period of two years the grannaries of the world are glutted. What then are the New Zealand grain growers to do 1 They have bought land at a high price, they look for interest for the money ; the lenders, from whom twothirds of the land purchasers borrowed largely, see no returns forthcoming from these speculations, grow shaky about theix securities, and call in their advances as they fall in ; the low prices ruling, and like to rule for perhaps eighteen months more, make capitalists shake their heads and say their funds are all out, the}’’ cannot help them ; the Banks, as almost everyone feels by dear experience, are all drained of their bullion, and the unhappy borrower, or would-be borrower, is at bis wits’ end to know, what to do. Wheat is low and wool is low, and partly for another season. That reason is, that the working classes at home are not now realising such returns for their labor, and by an advanced education and a knowledge that certain diseases have but one remedy or way of being cured, have prepared themselves for a more stringent regimen. Taking thorn all round the reduction in workmen’s wages in England, Scotland, and Ireland must have been during the last two years reduced from twenty to twenty-five per cent. This means five shillings less money on every pound’s worth of work less to expend in clothing, etc. Again, the value of labor is not only thus much redneed, but is not even abundant at that. The painful accounts received by the mail month after month speak only of starvation, and cases bordering on starvation. Is it, therefore, to be wondered at that the wool market is depressed, with little hopes of any real recovery while this state of things lasts. For the wool growers there is, however, a silver lining to this dark cloud. Other natior s than Britain are preparing to receive the Australian wool. Africa, Japan, and China only want a little effort on the part of the producers to have these most populous countries large consumers of this staple. We have often wondered how our sheep farmers have been so apathetic in this matter. If they would only organise and put forth an united effort in this direction by sending delegates, and by exhibiting samples of the magnificent wools which Australia and New Zealand now produce they would reap a handsome reward for their efforts. A few thousands of pounds would do it, but somehow this well educated, intelligent class of our settlers seem to be in a dormant state, and will only rouse themselves when the bailiffs are at their doors. To our agricultural farmers we cannot hold out any hope of a return to high prices (barring an unforeseen catastrophe) for at least two or three years. The growers of wheat in the great grain-grow-ing districts of America and Russia will go on increasing production (particularly the latter), and make it pay even at low prices. The only course open for our New Zealand farmers is to study those appliances used by the Yankees, which by cheapening the expense of production enables them to undersell the nations of the world. In the United States the greatest labor-saving machines are used, and by studying economy in harvesting as well as in growing they are able to produce at thirty per cent, less than the colonial farmer. Grain in many parts of the States never see a sack, but are taken from the fields in waggons, from which, by shooting it into the store, and from there shooting it into the ship, away it goes to find a market in any part of the world where there is an apparent chance to realise a profit. This matter has to be looked into by our New Zealand farmers. Another point is the crop-growing community have been giving too high wages ; here again the expense is more than thirty per cent, above the Americans. Indeed, every class of work in the labor market is much too high to allow New Zealand to compete with the other nations in her manufactories, whether of grain or anything else, and must be altered or New Zealand will again become a sheep walk. It has to be remembered that the North Island is not only now about self-support-ing in the way of grain, but is likely soon to enter the lists as exporters. Many settlers from the South Island have removed to the North and there invested in land at moderate rates, and are now turning their attention to grain growing, the prolific nature of the soil and the advantages of climate are well proved by the accounts that are chronicled from time to time. The enormous yields that are obtained where the experiment has been tried show that we have a rival not to be despised. Some people buoy themselves up with the idea that it is only the monetary crisis that has brought the present state of matters about. This no doubt has affected prices, but not very much. Some people again are of opinion that 'this will soon blow over, and that money will come from home by the bushel to put things right again. Vain delusion. We could give many reasons for saying so, but it would draw out this article to an unreasonable length. We shall take an early opportunity of returning to this subject.