Wairarapa Times-Age WEDNESDAY, JULY 12, 1939. FARMERS AND THE REST.

Wairarapa Times-Age, 12 July 1939, Page 4

Wairarapa Times-Age WEDNESDAY, JULY 12, 1939. FARMERS AND THE REST.

0 —. — J'\ (lie lengthy and detailed address he delivered at the opening of the annual conference of the New Zealand Farmers’ [lnion, in Wellington yesterday, the Dominion President (Dll' AV. W ■ Mulholland) once again stated the case of the man on the land and stated it very forcibly. Indeed in some particulars he mav have stated it a little too forcibly.

It is not in doubt that this country is more Ilian beginning to suffer the results of heavy over-spending and that the effect of the inflationary and other evils thus brought about is being felt in farming industry, and, in greater or less degree, in all industries in the Dominion. Thoughtful people may agree with Air 31 id holla nd, 100, that the question of what- is to be done about the deficit in the Dairy Industry Account is one of great moment, particularly, as he says, “with the overdraft piling up in what cannot, be regarded as other than a good price season.”

As to the position in which the sheep farmer is placed, there are wide differences of opinion—lor instance between Mr Mulholland, on the one hand, and the Minister of Agriculture, Air Lee Martin, on the other. Mr Mulholland’s contention that: “On a statistical examination, the farmer’s position is definitely worse than it was in 1934,” and the claim of the Minister of Agriculture that there is no evidence of any permanent decline in pastoral production, are almost at opposite extremes. Fortunately the exponents of these opposed views are agreed that the right thing has been done in setting up a Royal Commission to investigate the sheep farming industry. It is of course, desirable that the facts should be brought out as precisely a's possible. The report of the commission of inquiry may he expected to provide a groundwork on 'which it will be possible to approach more confidently than is possible at the moment the problem of establishing the equitable economic balance between farming and other industries that undoubtedly is very necessary.

Meantime, some highly important incidental questions were raised by Air Mulholland. His general attitude towards the expansion in this country of industries other than farming was decidedly unsympathetic, and it may be doubted whether that attitude pays full regard to the ultimate interests even of the body .of farmers ■whom Air Mulholland represents, let alone those of other sections of the population.

Stating that “an important factor in an expanding market for our farm products in the United Kingdom is the amount of British manufactures we are prepared to take,” Air Mulholland asked wdiether that fact had been given due weight before we “decided to plaster this country with industries that can exist only behind an absolute embargo.” As to this, grave reasons appear, in the first place, for doubting whether there are any means by which we can secure an expanding market for our farm products in the United Kingdom. Account has to be taken here not only of the policy under which Britain is at present restricting meat imports from this country and other Dominions, but of the great present and potential increase in the output of such commodities as dairy produce, lamb and beef in other Empire countries, notably Australia, and South Africa, and of the extreme improbability that we shall be granted any preference whatever over these countries in the British market. If the conditions that Air Mulholland apparently wishes to apply to industries other than farming were established, a large proportion of these industries admittedly would collapse. What then would become of the very large and increasing number of people who gain a livelihood in these industries, and of their dependants’ The conditions which Air Alulholland demands for export industry would seem to imply also the export from the Dominion of large numbers of surplus human beings. IMPORTS AND INDUSTRIES. yY SECTION of Air Alulholland’s address at the New Zealand Farmers’ Union, conference yesterday which may be expected to give rise to detailed discussion is that in which he observed that of the Dominion’s total imports valued at £55.4m in 1938, not more than a value of £19.6m represented finished consumers’ goods (the last-mentioned figure including £5.5m worth of unclassified imports). The remaining imports valued at £35.7m came under the headings of producers’ materials, fuels, lubricants, producers’ equipment and transport equipment. On these figures, Air Alulholland argues that:— As imports must be reduced by the Government in 1939 to not more than £3sm, possibly to £3om, manufacturers will have difficulty in obtaining materials and equipment to maintain last year’s production even if no finished consumers’ goods were imported at all. Therefore, any fall in farmers’ production for export must materially reduce the amount of goods and services that local manufacturers, etc., can supply. If we are to continue to enjoy anything like the standard of living which we have been enjoying, it is absolutely necessary that the production of the farmers of New Zealand shall be maintained at least at its present level. Every effort undoubtedly should he made to maintain export trade al. the highest, possible level and the difficulty of the existing import position, as it affects manufacturers and other people, hardly needs to he emphasised. That the figures cited by Air Alulholland really determine the possible expansion of manufacturing industry in this country is, however, definitely open to question. Over a period of years, the Dominion has imported approximately forty per cent of the goods used by its people.. AVlly should we not lower that proportion by increasing the volume of local manufactures, into the piroduetion of which, be it noted, local labour, land and other resources will enter very largely.' An enterprising and well-directed expansion of manufacturing production within the Dominion need not conflict in the slightest degree with our continuing to buy all the imports that our annual export surplus will enable us to pay for. It is an important condition of prosperity that we should buy those imports that we need most, and in existing circumstances some process of import selection appears to be inevitable. That our current import statistics can be taken as defining and determining the possibilities of the expansion of manufacturing industry in New Zealand appears, however, to be an entirely groundless assumption. A GUARANTEE DEFINED. CHAAIBERLAIN’S speech in the House of Commons, reported yesterday, amounted to much more than a mere reiteration of the guarantee given to Poland by Britain al the end of March last—a guarantee of assistance to Poland in the event of a clear threat to Polish independence which Poland considered it vital to resist with its national forces. Because Danzig is a German city, some possible doubt remained as to the extent to which its status was covered by the British undertaking. That doubt Air Chamberlain has now cleared up. Observing that on account of the necessity of safeguarding Poland’s millet to the sea, the present Danzig settlement, under which the administration of the Free City is in German hands, “is neither .basically unjust nor illogical,” Air Chamberlain admitted freely that in a clearer atmosphere possible improvements could be discussed, the essential conditions being, in Colonel Beck’s words, peaceful intentions and peaceful methods of procedure. At the same time, the British Prime Alinister uttered a plain warning when, after referring to recent developments in the Free (’ity- which had disturbed confidence, he added :— Meanwhile I trust all concerned will declare and show their determination not to allow any incidents in connection with Danzig to assume such a character as might constitute a menace to the peace of Europe. The effect of Air Chamberlain’s speech is to make it clear that the British guarantee of assistance to Poland applies unreservedly to any attempt to alter the status of Danzig by a military coup, or by any other procedure than that of peaceful discussion and agreement. It may lie supposed that this intimation will contribute to the maintenance of European peace unless the German Government is determined in any case to pursue a policy of violent aggression.