NEED FOR THRIFT.

Auckland Star, Volume LVI, Issue 66, 19 March 1925, Page 9

NEED FOR THRIFT.

ADVICE TO BUSINESS MEN. GOVERNOR ON TRADE PROSPECTS. PREPARE FOR A RAINY DAY. J His Excellency the Governor-General, < Sir Charles Fergusaon, Bart., was entertained to-day at a welcome luncheon tendered by the Auckland Chamber of Commerce. Mr. A. A. Martin, president of the Chamber, occupied the chair, and .. there was a large representative gatherin g- j In proposing his Excellency's health, _ the chairman said the occasion was unique in tjiat they had the honour of s welcoming the representative of His E Majesty. They rejoiced in welcoming. Sir Charles Fergusson in that capacity. His * Excellency took an interest in commercial * matters, and the chairman assured him that there were no more loyal men in the Empire than the business, men of New Zealand. Their welcome was extended to her Excellency Lady Fergusson, and the family. (Applause.) I In the absence of Sir James Gunson, B the Mayor, who was unavoidably detained, Mr. H. R. Mackenzie, chairman of the Harbour Board, endorsed Mr. c Martin's remarks,- and said his Excellency had already won his way into * ;he hearts- of the people. In New l Zealand we were a democratic people, § and judged a man as he was. We had r looked at his Excellency's record, and were proud of ■ his achievements. On f behalf of the Harbour Board he hoped f his Excellency would avail himself of I the board's launches and inspect the harbour. c His Excellency Pleased. r His Excellency, who was received * with applause, returned cordial thanks for the hospitality and welcome x extended to him. After three months c in New Zealand, one began to be surprised at nothing, but every new association impressed him more and more , by their kindness and warm-heartedness. k One was made to feel at home, and , there was always a friendly atmosphere. Coming to New Zealand, nothing had * impressed him more than , the marvellous demonstrations of loyalty. It was * absolutely astounding to him. In New Zealand one found those things were not spoken in bated breath, but we're out- * spoken from the heart. " I've never had much reputation for courage," continued his Excellency, " but on this occasion I think I deserve a medal, for ll am going to speak on subjects upon which I feel most diffident." He was expected to say something on matters in which his hearers were all experts. Not only might one tumble into pitfalls of controversy, but one might exhibit ignorance of matters of commerce and trade. Between now and fifty years ago, when he left New Zealand as a boy of ten, conditions had changed. The first thing that struck him was the difference in exports and imports. In 1873 imports were 6$ millions, in 1923 they were 43 millions. In 1873 exports were £5,600,000, to-day exports were about 46 millions. It gave the layman an -idea of the country's wonderful progress. New Zealand, in trade per head, with one possible exception, held the highest position in the world—£o7 per head. He would like to see "these figures emblazoned in letters .of gold, so that people would recognise that New Zealand was now a country to be reckoned with in the markets of the world. That fact was not realised at Home. He had tried to explain the possibility of trade revival at Home, and he had advocated' that help lay in the direction of trade with the Dominions. He saw that exports had reached a high figure. The usual explanation was high prices. No doubt that had a good deal to do with it. The main pastoral I exports were exported in 50 per cent bigger quantities than ten years ago. That was not clue to the increased population, which had only increased 25 per cent, and, moreover, the population in the towns had greatly increased. But, notwithstanding migration to the towns, we were producing a greater surplus for export with fewer people working, which pointed to increased efficiency, which all pointed to the great increase of I rosperity of the country. Country Must Take Stock. His Excellency added that the Dominion was in the living in a time of prosperity, but we would be 1 foolish not to take stock and look to ■ the future. We should remember our imports are large, and it would be wise always to watch the imports and consider whether they represented a fair ! proportion of articles necessary for the. , development of the country (articles of consumption), as against luxuries. A big increase of exports followed by big ', imports could only be good if proper proportions were properly observed. Did these imports represent too great . a stock held by trade? If there was a \ sudden drop of prices the result would be a decrease in the consuming power of the population, which would hit the traders. Then in regard to borrowing. ' the increase of borrowing by local bodies had doubled in ten years. The ■ amount outstanding on mortgages had . increased from 114 millions to 258 • millions in 1023. No doubt the country i could stand that, but we should rememi ber we could not count on high prices continuing, and a fall in, say, wool, i would make a great change. There ; should be a time of thrift, and a time when people should consider reducing ; instead of increasing their liabilities. [ It was no more than common prudence L to suggest and to consider in the first t place " thrift." What we had to do was to provide against the possibility \of a coming rainy day. The prosperity of the country consisted in having the maximum surplus of pastoral goods for • export, of the best quality and at the ; lowest cost of production,- so as to obtain the maximum prices and maintain them, and so compete with the other rival producing nations. That . soemofl to be the maxim on which we • should work, coupled with thrift and foresight, in view of the possible rainy day. (Applause.)