"ALMOST EVERY CLASS"

Auckland Star, Volume LXII, Issue 143, 19 June 1931, Page 11

"ALMOST EVERY CLASS"

SUFFERING IN SLUMP. BANK CHAIRMAN'S ADVICE. ."REDUCE LIVING STANDARDS." In reviewing the economic conditions of New Zealand, the chairman of the Bank of New Zealand, Mr. -W. Watson, .in his address to the annual meeting of proprietors to-day, said that despite increased production the shrinkage of many millions in the total value of exports denoted how seriously New Zealand had been affected by the world-wide depression';. . '' . . . ' "Almost .-every class,' of the community," he said,' "has. suffered, sheep farmers most of all. Traders have been working on an inadequate margin of profit or have made no profit-at all; indeed, in many cases severe, losses have been sustained , . ; --.\J?eople who are dependent, on dividends from joint stock companies have .had their incomes greatly reduced; .Unemployment is -serioils and will continue until labour can be profitably employed; That there will be a-return Jo the prices of a few years ago is most unlikely. ' ■■-....,

;■■'■;'"Values our assets.must be based on .the competitive : value of . our products, in the. markets: of the. world,- and standards of living ad-justed accordingly. A; great many persons who have enjoyed substantial;incomes now find, themselves without any income arid .forced to trench on capital; built up in most cases by years, of industry ' and self-denial. If they have not the necessary means, they must, regrettable as. it-may be, reduce their standard\of living, in short, the coat .must be cut according to the cloth. If the standard \.<fi living caii.be improved in countries which compete with this country in the markets of the world, then "the standard in the Dominion can be correspondingly improved. By the time the country settles down to a sound '.basis, , very many millions will have been written off existing values.

"The irrecent 'cut' of 10 per cent. in salaries 'arid wages 'will, in many instances, inflict, more .or less, hardship, but I. would emphasise that a-, great many persons, have-been obliged to face losses-far in excess, of 10 per cent.".