THE VALUE OF LOCAL MARKETS.

Waikato Argus, Volume I, Issue 3, 16 July 1896, Page 3

THE VALUE OF LOCAL MARKETS .

gx Ej Many times and often through your columns and those of other papers, I have sought to impress upon our farmers the value of local markets, and my constant assertion has been that we can never restore the value to land, nor raise the price of produce until we have many more of them. Lately I have had occasion to visit the mining districts, Paeroa, Karangahake, Waihi, and I was much struck by tho illustration they afford of the truth of my theory. At Waihi the following prices prevailed :—Chaff. L 6 per ton ; potatoes, L - per ton ; maize, 4s 6a per bushel ; hatter, Is per lb ; eggs, 2s per dozen ; milk, 2s per gallon, etc. What would my Waikato friends say to these prices. I am aware that the railway reform movement has lost much of the support of the Waikato farmers, because they have thought that passenger fares was a matter of little or no importance to them, but that what they required to bring them prosperity was cheap freights, to enable them to run their produce to the exporting ports. From the first I have held that this was an error, and that what the farmers really wanted was such an arrangement of fares and freight rates as would compel the market to come to them instead of compelling them to send their produce to the market. The question is, Can this he done ? I say that it can, and that the system will do it j hut ~W aikato appears to have lost all interest in the matter. It is surprising that the farmers do not see the great importance of this matter. Two years ago the Katikafi farmers could hardly exist ; now, owing to the local market at Waihi, they are doing well, and farms for which the owneis would gladly have taken £IOOO are now held for twice that amount. A proper system of railway administration would soon create considerable, if not large local markets at Franktou, Rotorua, and other inland towns. How different would then he the position of the surrounding farmers. It, however, seems from the Hon. Mr Cad man’s reply to Mr Massey that nothing will be dona to alter the present position this session, nor will it ever he done at all until the people bring more pressure to bear on their representatives. If the constituencies would say to the members, you must put this thing through or we "will put you through, the thing would be done soon enough. The difference is not so much ■with'the Government as with the department, and they will never give way except under compulsion. The talk about fear of loss of revenue is the merest bunkum. For seven j'ears the Zone system has been running in Hungary, which is now probably the most” prosperous country in Europe. I am aware that the statement is made that there they have lately raised their rates, hut I have not been able to obtain any information of the truth of this statement. ijuite certain it is lhat until they jij plied their system to goods traffic the

prospered exceedingly, and I have always pointed out that unless the utmost care and caution was exercised in applying the system to goods rates, for at any rate two years loss of revenue must ensue. My Waikato friends are altogether mistaken in thinking that passenger fares do not interest them so much as goods rates. No possible reduction that they can obtain in goods rates could benefit them so much as the adoption of my system of passenger fares, as this would bring the people up to them instead of compelling them to send their produce to the people. The people would be with them permanently, and the local market would be always growing. The reduction of rates they would only enjoy for a few months, then prices would adjust themselves and the farmer would be worse off than ever because they would have to work on a less margin of profit. The strongest confirmation of the soundness of my theory of railway administration comes from Russia. On the Ist December, 1894, the zone system was applied to the most thinly-populated districts of that vast Empire, and to those districts only, for it did not operate on any distances of 200 miles and under. The result was as follows ; The Russian railway officials estimated that the passenger revenue for the year 189495 would be L 6,167,552. It proved to be L 9,183,333, or L 3,015,781 more than their railway experts expected to get. This was an increase of revenue oyer the previous vear of L 1,121,578, instead of the “ expected deficiency ” of L 1,894,202. I again repeat my assertion that the Stage System as proposed for this country will give greatly better financial and social results than the Zone System, and I ask how much longer are we to bo deprived of its benefits simply because it does not suit the interests of some half-a-dozen people.—l am, etc., Samuel Yaile, Auckland, 13th July, 1896.