The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News The Echo. WEDNESDAY, DECEMBER 31, 1930. THE PAST YEAR.

Auckland Star, Volume LXI, Issue 309, 31 December 1930, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News The Echo.

WEDNESDAY, DECEMBER 31, 1930. THE PAST YEAR.

For the cause that lacks assistance, For the wrong that needs reeistance, For the future in the distance, And the good that toe can do.

It i≤ economics rather than politics that one thinks of first in remembering the year that closes to-day. Over the whole world has hung a grey, and even black, pall of economic depression. Prices have fallen to an extent not paralleled for decades past, national and private finance has been strained, and unemployment has reached grave proportions. In Britain export values have dropped, and the number of unemployed is far above the two million mark. In Germany the position is even worse, and the facade of prosperity that the United States has proudly displayed to the world has cracked visibly. Australia faces the worst financial crisis in fifty years, if not in her whole history. Our own country, like every other, has been affected, but probably to a less extent than most. At no time in the world's history has mankind heard so much about economic forces and problems of credit and currency. The average man has been forced to take art interest in these matters. Also, it is being borne in upon the nations that the world is an economic unit, that no nation can suffer or prosper alone, and that in the future the economic salvation of mankind may depend upon international action in the economic sphere.

In the history of the British Empire two events stand out —the Conference on the future of India, -which was preceded by the issue of the Simon Report, and the quadrennial Imperial Conference. Vast issues hang upon the result of the Indian Conference, at which representatives of all parties in India save the National Congress are searching, with all parties in Britain, for a satisfactory formula of self-government. \' The progress of the Conference appears to be as satisfactory as could reasonably be expected, and the position in India is better than it was early in the year. The importance of the Imperial Conference lay in the fact that*it achieved little. The fiscal question overshadowed everything else,., but the British Government declined to depart from free trade. The year, however, witnessed a definite movement in all parties away from this traditional policy. As a result of over-borrowing and over-spending, and the sharp decline in the value of primary products, Australia was thrown into a financial crisis, the gravity of which was accentuated by the refusal of a section of the Labour -Party to take the necessary remedial measures. Canada's change of Government was one of several revolts in various parts of the world against 'the existing regime. When times are bad voters are disposed to try other

rulers. An international event of first-class importance was the London Conference for the limitation of naval armaments. It achieved less than was hoped —France and Italy were not bound by the resultant treaty —but Britain, America, and Japan reached further agreement to restrict their fleet strengths. Europe experienced another year of peace, broken, as usual, by unpleasant dreams, of which Franco-Italian rivalry, including the failure to come to a naval understanding, was one. The success of Hitler's Fascist Party in the German elections alarmed the world, but did. not affect internal politics or Germany's relations with the rest of the world so much as was feared at the time. It was, however, another reminder that democracy is very much on trial. Mussolini continued to frown at the world and rattle his sword occasionally; the anti-monarehist movement in Spain appeared to make headway; and the Russian Government was as class-conscious and as actively unfriendly to Western civilisation as before. China was still disturbed, but her relations with the Powers were satisfactory, and apparently the work of removing the system of European domination made some progress.

In New Zealand this- has been an anxious year. Politically the chief event was the resignation of Sir Joseph Ward—soon followed by his death —and the succession of Mr. Forbes to the Premiership. The principal achievement of the session was the Unemployment Act, which set up an Unemployment Board and levied a special tax on all adult males. As the year drew to its close economic conditions became worse, because on top of the fall in butter came very low prices for wool. The value of "our exports fell by .millions, and loud grew requests for. special action by the Government, and especially relief for the farmers. A demand for general reduction of wages has been one of the economic features of the year, but the Government declined to accede to this. Its troubles have been many. In the middle of the year it had to budget for a falling revenue, and increased taxation was imposed. At the end of the year it has appointed a special Committee, composed of Ministers and civil servants, to overhaul departmental expenditure. Other actions that should be noted were the drastic cutting down of Defence expenditure, and the decisions to stop work on four railway lines under construction. The railways remain a great problem for the coming year. The truth is that the national income is a good deal less than it was, and the country must accommodate itself to the new conditions. There is, however, no reason for panic or despair. The situation is serious enough, but this is not the worst economic crisis through which New Zealand has passed, and at heart the country is sound. Once world prices rise again we shall be better off, and we may be able to turn to advantage this lesson of depression, with its instruction in the danger of inflation and extravagant living. With the hope that it will not be long • before conditions improve here and everywhere, we wish our readers "A Happy New Year."