PUBLIC OPINION

Waikato Times, Volume 122, Issue 20500, 17 May 1938, Page 9

PUBLIC OPINION

As expressed by correspondents, whose letters are welcome, but for whose views we have no responsibility. Correpondents are requested to write In ink. It is essential that anonymous writers enclose their proper names as a guarantee of good faith. Unless this rule Is complied with, their letters will not appear.

DEBT FALLING DUE

''To the Editor) Sir, —I hope that the statements made in your leading article on maturing loans come under I lie notice of the authorities. The total sum, £17,173.191. is a big one, and the conversion will be a most important transaction for the country. The arrangements must be completed within a year of the coming election, and as probably some of the scrip could be dealt with after April i, 1939, any opportunity should be seized. With the British Government authorised to float loans for defence purposes. aggregating many millions—borrowings for this purpose reached £93.000,000 last year—the markets may not be favourable for other issues, and* the failure of the recent Australian and London County loans shows that new loans are not being well supported. Our hope lies in the fact that the Dominion will not he seeking new money, hut simply converting a maturing Issue, and provided the terms are slightly better than the new loans no great difficulty mav he met. The fact that the British Government will he on the market for loan money may, in the long run, prove of value to New Zealand. It will throw on the British Treasury the task of keeping the money market stable at existing levels. The Increase in the income tax at Home had the effect of reducing market prices for gilt-edged securities, and that, if it is maintained, should be of assistance to our Minister of Finance. Any rise in money rates would mean added cost to the British authorities, and they will do everything possible to prevent that.

In a letter received to-day from a London house It is stated: “The country cannot risk a rise in the rate of interest which, besides having a deflationary influence upon private enterprise and making new Government borrowing more expensive, would increase the cost of management of the existing debt. There can be little doubt of the ability of the monetary authorities to preserve a high degree of financial liquidity and a relatively low rate of interest.” If that is so, then conditions should he favourable for the conversion of our large loan and possibly for a substantial saving in interest annually.—l am, etc.. W. BURNLEY. Cambridge, May 16.

INBULATINQ THE DOMINION

(To the Editor) Sir.—A correspondent, in a letter under the above heading, would indicate that he believes that a slump overseas must result in a slump here In New Zealand, and he gave figures showing how the numbers of unemployed rose at times when our primary produce met a slump market overseas. He then said many people were very dubious about, the existence of any Government plan for the insulation of New Zealand in case another slump comes. Well such a plan would present no difficulty with an up-to-date policy, and any Government should see that it is able effectively to meet such a likely possibility as a slump overseas.

It will he readily agreed that if the amount of money considered short in the price realised overseas for our produce is made up here in New Zealand from debt-free money, the economic result here will be just the same as it would have been had the full amount been received from overseas in the first place, and that the primary producer would then have fully the same spending power. Since in that adjustment only a money shortage would have been made up. and no increase of money would have been caused, the question of inflation would not arise. But in any system of government where debt-free money is used, as in the non-balancing of the Budget system. there are always certain definite regulations in operation to guard against money losing its buying power, even should the debt-free money he extensively used. II might now he as well briefly to explain here jusf what debt-free money is. To get debt-free money the Government would simply authorise the Stato Bank here in New Zealand to write out the required amount. That money would then be free to the Government, free to the State, but. not free to individuals. All persons would have to give the goods or services to get it. But the Government, of course, could use this debt-free money for any costs in government or anywhere where its use would be socially just or wherever its use would make for social Justice, as, for instance, to finance a compensated price for primary producers. On the other hand. * money would be debt-money when it is got as a loan from the moneylenders overseas, who would simply write it out on the strength of New Zealand’s own wealth and production. Then New Zealand would be in debt to those overseas moneylenders for tlint amount, plus interest, and the Government • must get that money again from the people by taxation to repay those moneylenders for doing what we .could have got for nothing. When we want foreign credit to buy goods from overseas we can get all we require from the sales of our produce overseas, so that there can now he no excuse whatever for any Government neglecting to make use of debt-free money to carry out any simple jol). such as the insulating of the country against a slump overseas. Quite a number of countries, including Italy and Germany, are now successfully working on debt-free money in the non-balancing of the Budget sys- | tern, and it is now feared, so we read, that they will subsidise their exporters of manufactured goods to capture i foreign markets, as under the system | they are well able to do. Any party j not willing and able to do as much j for our produce exporters—which in j turn would insulate this Dominion against overseas slumps—must now he considered incompetent and not the party to vote for.—l am. etc.. J. P. KBIPPNER. Te Bore. May 14.

dairy industry account

To the Editor) ?, ‘r.—lt is well known that Mr Nash made a definite promise that if the sale of dairy produce resulted in an amount in excess of the guaranteed price the industry would receive every farthing of it T have no doubt that Mr Nash will keep to this promise, hut the point is. Who will receive the actual cash? I fancy I can see Mr Nash feeling that he has honoured his word if he were to formulate a few more drastic regulations in regard to dairy-farming, or else set. up certain research work that, together with the payment of a few additional inspectors, would absorb any surplus, whether the farmers wanted it or not. In any case, farmers nowadays are supposed to do as they are told. Their Job is to increase production, and work a little harder to provide the expected increase in national income to meet the increase in expenditure that social service will absorb. In the end the actual producor can expect little personal gain from any surplus, at least after this election year.—l am. etc., E.C.11. Hamilton, May 16.

FACIAL ECZEMA

(To the Editor) Sir.—Assuming that, Dr. Gilruth’s excellent report regarding eczema outbreaks in New Zealand (summarised in a recent issue) is practically all we know of the disease, any additional information concerning the present epidemic will be welcomed alike by sheep-owners and officers of the Department. With the object of supplying certain data relating to the complaint the following facts may be of Interest to your readers, bearing in mind that these investigations have reference only to the Kawhia district, and apply principally to sheep. (1) All grass lands, whether bush clearings or open country, where artificial manures have not been applied, appear to he practically immune from the trouble insofar ns both sheep and cattle are concerned. These may he described as second-class pasture, consisting variably of danthonia and rat-fail, with a predominant mixture of English grasses. In cases where topdressing has been employed reports indicate that the extent of the trouble is almost in exact ratio to the intensity of the application. An exception to the foregoing occurs in very' rich pas-ture-land such as black loam on coastal areas, river fiats and drained swamps, where flocks have suffered in some degree, although no top-dressing in any shape or form has been used. (2) Previous outbreaks have invariably taken place (dating from 1908 to the present epidemic) when an exceptionally dry, hot summer has been followed by autumn rains, indicating an unusual flush of succulent herbage. This growth is particularly luscious and rapid on highly top-dressed and naturally rich country. During seasons with a normal rainfall, or even excessively wet weather, ** there has been no recurrence of disease. (3) Only ruminants are affected, and fat stock appear to be especially susceptible, being less active. Prior to the present outbreak lambs (hoggets) have not suffered to any great extent, and even this year only those in very forward condition have been attacked. In one instance lambs running with affected sheep appear perfectly healthy. (4) When sheep are removed from rich pastures under the conditions as set out in No. 2, to the hard, dry grasses as detailed In No. 1, no further outbreaks have so far occurred, wjiile those showing incipient symptoms, or under the first stages of eczema, almost immediately recover. The logical conclusion to be drawn Is that the disease is entirely—or, at any rate, almost wholly—dietetic, due principally to the lack of food of a fibrous nature to provide a cud, which is essential in all ruminants .

The preventive measures—namely, the provision of fibrous food such as hay or fibrous grasses—are obviously essential, while it also seems likely that green fodder crops, or a paddock of paspalum. during tlie dry months would also be beneficial. The question whether rapidly-growing grass possesses injurious ingredients, and, if so. whether such ingredients or chemical compounds are expelled during the process of rumination (chewing a cud), are matters for research, as is also the very doubtful suggestion that ergot is produced on such herbage. The theory that the ultra-violet rays of the sun play an important part In the virulence of the present epidemic, and that a black pigment is necessary to deflect their action on the exposed portions of the body, appears highly improbable In view of the fact that those self-same rays were operating during January and February, when there were no symptoms of the disease, and that blaek-faced sheep are equally liable to eczema as the white breeds. At the same time it must he stressed that adequate shade from the rays of the sun is one of the most important factors for the relief of those affected, and is eagerly sought by both healthy and diseased animals. In this connection it may he suggested that orchards and plantations usually afford both the essential shade and the fibrous grasses so important as correctives. Swabbing the head with diluted fluid sheep dip has been found the quickest method of relieving affected sheep from the intolerable itching which drives the maddened animals into all kinds of self-inflicted injuries. A mixture of Stockholm fur and vaseline as recommended hv the Department should follow as a dressing. The discovery of an effective remedy to correct the disturbance of the internal organs is a problem for the laboratory and subsequent experiment.

The foregoing was written a month ago. and nothing lias occurred, or has been reported, io alter the facts or conclusions stated. In a dairy herd of 60 cows (not in this district', which have access to natural bush for shelter and a ration of rough feed, onlv one was affected, and that one was almost wholly black. Dairy cows and sheep fed on paspalum which lias grown luxuriantly through the dry weather, but is fibrous in texture, have escaped, while hay lias been found to be both preventive and corrective. The obvious conclusions to he drawn are: (1) Supply green fibrous feed such as maize, sorghum or paspalum to cows, during a drought, or access to rough or old pasture, with adequate shad 1 . ■: Provide a paspalum paddock for sheep during the autumn, or a succession of green, fibrous crops, io follow summer growth. Again, ample shade. Summing up: Give ruminants a cud and you have the cure.—l am. etc.. OBSERVER. Kawhia, May 14