FARMERS’ PROBLEM

Waikato Times, Volume 119, Issue 19889, 19 May 1936, Page 4

FARMERS’ PROBLEM

! SAFEGUARDING INTERESTS COMPENSATING PRICE NEEDED. | PRICE LEVELS DISPARITY. “ The greatest change in the history of New Zealand politics has taken place recently, and whether people profess to be interested or not, all will be affected in the near future by the policy of a Government which has taken power to control as completely as it wishes the monetary system of the country,” said Mr J. H. Penniket, of Hamilton, addressing a representative gathering of Farmers’ Union members and others at Te Kowhaf on Saturday evening. Mr E. C. Hocken, who presided, said he hoped that the Government would not calculate the guaranteed price for butter strictly on an eight or ten years average of sterling prices during the past decade as such a price would foe insufficient to enable the farmer to meet the rising tide of costs which must follow automatically from other recent legislation toy the Government.

Mr Penniket stated that the Government had appealed to the people and their various organisations for their •co-operation. One organisation that 'could help was the Farmers’ Union, and he had offered his services in his spare time to the union, which existed to safeguard the interests of the farmers. The Government now controlled the money system; it was for the people to -see that that system —which affected all —was controlled wisely and equitably. The majority of the new Cabinet were not as closely in contact with farm economics as they were with urban economics; therefore it was essential that the farmers’ viewpoint should not he -overlooked in the changes taking place. Gap Must Be Closed. “ New Zealand’s problem is the farmer’s problem,” said Mr Penniket, and went cm to quote President Roosevelt, who had said, 44 the man on the land must be saved,” and who had succeeded in raising the farmers’ prices by one third by monetary control. 44 The New Zealand farmer sells on a low, almost free trade, United Kingdom price level, but 'buys on a high protected, New Zealand price level; the problem is to bring these two together,” continued the speaker. He quoted from Government statistical records, which showed that while New Zealand’s wholesale and retail price levels—farmers’ buying prices—an:, farmers’ selling price ha roughly followed one another durin. the war, at present there was a diparity between the two, the ind< number for the former toeing 1300 an* for the latter 800, basing both upo. 1000 in 1914.

“This gap between 1300 and 8m must be closed if our farmers are l< be saved,” said Mr Penniket. “A! tempts have been made in the pas to close it toy reducing costs, tryin - to bring the 1300 nearer io the Bim but this method causes such harm ft. repercussions, even where it can J. applied, that it is not practicable. Wil a Government pledged; to guarantee-i prices for the farmer it is necessary l urge up-on them the necessity fi , building up the farmers’ returns i>. monetary management." The speaker painted out that the 1914 balance be tween costs and prices could be re stored if the farmer received his ju.s due, a compensated price designed I make up the disparity between the l\\ price levels which affected the man o. the land. It was absurd to say i could not be done; index number were published regularly and abuu eighty-five per cent of our exported dairy produce was sold on the English market, which meant that for ail practical purposes the English index numbers would be the only -ones required besides our own. Increased Production. “ The farmers have increased their exports of butter from 1,108,040cwl in 1919 to 2,635,247 cwt in 1933. By wise management they have increased the average productivity per cow from 1501 to butterfat to 2201 b per season, and in spite of the fact that lewt oi

butter will actually exchange for more goods at English wholesale price levelthan in 1914, the farmer is worse off. We want justice for the farmer, justice in the shape of a monetary return, which reflects the facts of his increased efficiency,” suid Mr Penniket.

“ To issue money in excess of the 1300 to 800 gap will mean inflation and rising costs again,” continued the speaker, 44 to issue less than enough will leave the farmer under a disability. We must ensure the wise control of these money issues and I submil lhat a compensated price based on index numbers is preferable to an average of several years’ sterling prices which at best is but an arbitrary method.” Mr Penniket said other sections of the community were pressing . their I claims on the new Government, shorter j hours and higher wages would be ! conceded to the trade unions, and already certain manufacturers were putling in a plea for higher tariff protection to meet the increased costs involved. In the end the farmer would he the sufferer unless lie, tuo, was “up and doing.” In the speaker's opinion New Zealand should concentrate on what she could do best; she was wonderfully endowed by nature for grassland farming, particularly dairying, and ir. would pay her heller to buy most of her requirements from Great, Britain and not toe 100 hasty to develop her secondary Industries until I here was a sullicienl ly large population lo nuke mass production inethuds possible. He concluded with an appeal to • those present who had not alreudv joined the Farmers’ Union to do so", and to support their leaders who were trying lo see that in Ihe coming changes the farmer was not neglected. After answering questions Mr Penniket was accorded a hearty vote of ihanks on Hie rnulion of Mr F. ],. Union.