PRIME MINISTER'S MESSAGE.

Auckland Star, Volume LXII, Issue 82, 8 April 1931, Page 9

PRIME MINISTER'S MESSAGE.

ORGANISERS COMMENDED

"CONFIDENCE AND OPTIMISM."

The Prime Minister, the Rt. Hon. G. W. Forbes, has written to the organisers of Auckland's "Cheer Up Week" commending them for their initiative, and expressing the wish that the objects they have in view will be fully achieved. Complying with their request for a special message, Mr. Forbee Bays:. —

"Along with, the rest of the world, the Dominion has been passing through a period of severe economic depression. World prices of raw materials have steadily fallen. Unemployment has been rife, and the problem is still seriously exercising the minds of the Governments in the majority of countries. The purchasing power of most sections of the community in almost all countries has been seriously reduced.

"Such conditions engender a general lack of confidence, an unwholesome distrust of business conditions, a fear that prices will fall still lower. New Zealand ha.s been no exception as far as these conditions are concerned, and the depressing effects on trade of the falling price level which has been experienced until recently have been largely exaggerated and enhanced by the psychological effects of this factor, by a general lack of confidence.

"The remedy for the prevailing troubles unfortunately does not rest in New Zealand's hands, for they result from world-wide conditions, over which this country has little or no control. Periods of depression have, however, been experienced before both by New Zealand and by other parts of the world, and they have emerged safely and successfully from them. Conditions in- England and elsewhere npw appear to be ripe for a revival of confidence and for the restoration of business on a aaner and sounder basis. Prices of certain raw materials, as, for instance, dairy produce and particularly wool, have "shown a marked improvement recently, and it now appears certain that the period of falling prices has been checked and that the trend is definitely upwards. .

"Low bank rates persist in London and elsewhere, and offer encouragement to the overseas manufacturer to extend his business activities. Low prices similarly afford him an encouragement to purchase increased quantities of commodities. Confidence on the part of the manufacturer in the knowledge that he can make a profit on the production and sale of goods at present prices is what is neceseary, and the restoratio 1 of confidence generally amongst the business community would assist greatly in bringing about a healthy industrial expansion.

"Confidence and optimism are the keynotes to a eteady improvement in present conditions and to the ultimate dispersal of the prevailing clouds of depression. If the efforts of your committee are able to instil a more cheerful and optimistic outlook into the minds of the people of Auckland and of the surrounding districts during yaur 'Cheer Up Week,' if they are able to dispel the gloom and depression which arc at present prevailing in Auckland and other portions of the Dominion, and if by performing these services they assist in quickening the wheels of industry which depression and lack of confidence have retarded, then your committee will have performed a definite and lasting service to the community.

"I wish the efforts of the organisers every success."