CREDIT FOR TRADERS.

Auckland Star, Volume LX, Issue 56, 7 March 1929, Page 10

CREDIT FOR TRADERS.

GRADUAL RELEASE WISE. DANGER OF ANOTHER "BOOM" 0MASTER PAINTER'S VIEWS. "Those who are qualified to speak on financial matters tell u« that there 5now plenty of money for investment where there is ample security or a reasonable prospect of a fair return and this state of affairs should be followed by a steady increase in general prosperity in which all sections of tin community must sooner or later share. 7 ' -aid Mr. Thomas A. Wells in hi* pro -idential address to the Master •inference in Wellington. Mr. Wells said that the bank returnindicated that investors were exerci-iii" ■■aution. and while the impatient oneamong traders were feeling restive, it was probably a good thing that the release of funds should be gradual. A sudden flood of extended credit would probably result in a repetition of the ill-founded optimism of 1925, and the depression of the last three years which >vas largely the natural outcome of '▼hat took place then might easily be repeated. "In looking at the encouraging signof graduall increasing prosperity/' Mr. Wells said, "one must beware o*t beins led into a desire for another boom, he" cause a boom, with the consequent e.\ceof spending and over importation which it induces, is invariably followed bv a we n fTii The higher We 5WiDg the lo ' w, - r What are "Normal" Conditions? "Nor should we los e our - en^e - -,>ectne._ There i s a tendency in thv .ninds ot many people, in looking for h return to what they call normal",.^ and as normal times and "o consider the periods in between and since those vears a« slumns -ri \ is that those years were Tear-f 6 - U!l normal prosperity. whi le »S ? M °4 oTed OQ a* slump periods were of co^ e lub'

normal time?. The normal times for which we are justified in hoping should lie somewhere in between the two extremes. Iho sooner people generally make up their mind- to that fact, and the sooner they realise that a period of steady prosperity in any land can h» maintained only hy hard and efficient work the sooner will this country, than which there is none better in the' world find it,elf filled with a contented ari happy people. A period of high prices and large export- H well enoush if we -ave of .•Uγ surplus, hut so often as a large trade balance re-n'.ts in an ursry or spending and over-importation. Vo surely will we have widespread :-ion and misery as a natural ''con--t-'quence."' Necessity of Saving. "If the Dominion i* to pro~re-- : - will need more an.l more cai'ita! ;■■> rrovi'le for an ;,.,.-,..,,;,,., ;„-,,, !: i at j on ' V.-: •'fter all. what i- .-aphal i,;i t the'a-:-inmilated saving-, of i|,.. p,.,,-,]o in t; :: e of prosperity? 1,, ,]",, ] ivt i,' ~f :'," vulual* it i- the man who. c-i-0.-iali'v' V n prosperous time-, live* below his •- ■Mi.l save- the halam-e who r, ln f.,.-e >enods of adver-ity with .■.iin;,la.ar.>v Vf-au-o he !.a- e.vinr.u'atM a'f;in<" : o draw ~:,. The man wh.. =,>.-.j : ,l- ;< V • neon... ov ,-n v , ■~.,, -~;, ;,,,.".,.,.„ j. ],:,'; '« t!! '"«" »li» i- lik.-ly i,, lu*V-'-; Mines to 1 o mi . n .-har 2 ,. "on the >; i:e and a_hurden to hi- f.-l]..w«. S,V in'j::itP " f a n:it'-.i). (>;;;■ natif-nal w, 4 ;--. the f"" , !' l, -- nii'l 1 h.~-e that in -'- '•ro-p (T n, ] . tij,.,.. w -hi.-h appear t- "•■ "ifad of u- t!n- <-..ii,urv w i!j f r .i ;- • '•Wot-. a.M awuinulaV-.-i wealth. '"•■ ■ "Tl." «•.».—f:,l flotation C,-,.... "lent !„„:., w i in ,, , ( ~ al . ■. r ;; sratulati..;. an.! f.-r Uμh ... ' "* :'» I'Xf-iKc for t" "tift,.!fli , f n .;; if , 7j v ;.- «««at i« warranT..! by , lUr na in '■ome. (h, r-:r rt .lini: >~ ~, ■■ ' '•ni-i. U ;t, 1.,;..,.,; .;'■' ' '! x ■■"-; ,r -!-'. ■" ;r .. ' ■.••''■! i si.-. v.-r\- f.-i r <•:" , ■ X ' i-r ~ 1 : :"-;''4- .' > : - -nriuld ,-.p reiter.uf i ■ > until They h.--.-\, Pi '.. rP( .,,^: ai: ' ] 3 - r^ -■ary ~3 r" t of the v"'Tv*