YEAR OF TRIAL.

Auckland Star, Volume LXII, Issue 309, 31 December 1931, Page 3

YEAR OF TRIAL.

DOMINION'S ANXIOUS TIME.

NATIONAL INCOME DECLINES.

PRIME MINISTER'S MESSAGE.

In a New Year message to the people of New Zealand, the Prime Minister, the Right Hon. G. W. Forbes, states:— On the threshold of a new year the time is not inopportune to take stock of our position in order that we may profit by past experiences, and at the same time gain encouragement in meeting and overcoming our future trials and difficulties.

The year just closing lias been a trying and anxious one. It opened with the promise of better times. Prices appeared to have at length reached rock bottom, and it was confidently anticipated that the depression was lifting'. Unfortunately those hopes have not been realised. Our exports, while attaining their previous volume, have shown a further serious fall in value.

For the 11 months ended on November 30 the declared value of our export* amounted to £32,000,000, compared with £42,000,000 for the same period last year, a reduction of no less than 25 per cent. This decline in the national income has of necessity permeated the whole social fabric, and both individually and collectively we have been compelled to do without many things that we were able to afford in more prosperous times. Low Export Values.

The past year has been one of severe trial, particularly for the primary industries, and the low values ruling for our main exportable products have caused serious difficulties for farmers. It is a source of gratification to realise that financial institutions and mortgagees have generally done their best to assist the primary producer to carry on. In a country such as New Zealand, so largely dependent upon the products from the land, it is naturally essential to continue to strive for an increased output, always improving in quality, to offset in some measure the reduction in commodity prices. The gap cannot be completely bridged in thie way, but the advantages of increased production will only be fully realised when more normal times return.

It is satisfactory to note that the volume of output from our two great industries—sheep and dairy farming— has further advanced during the past year, and the quantity of fruit exported has also increased. Butterfat production for the season ended last July increased by 2.5 per cent over the previous season, and for the first four months of the present season an advance of 3.85 per cent has been registered. While the export trade in lamb has shown a marked increase, the prices for wool, which have hitherto been the mainstay of the sheep industry, have been more adversely affected by world conditions than any other commodity, and thus sheep farmers as a class have felt the depression probably more keenly than any other section of producers. Unemployment Greatest Problem. Unemployment, which is. still one of the greatest problems facing nations at the present time, has been, a matter of special concern to the Govemment, and every effort lias been made and will continue to be made to absorb in occupation those who are unfortunately out of work. In this connection the co-operation of every section of the community is necessary, and this, in the past, has been willingly given. It is therefore with confidence that we appeal for a continuance of the community effort. On ((he facts at present available it is probable that continued sacrifices will be called for. The position, however, is not without its compensations. For the 11 months ended last November our exports exceeded imports by no less than £9,000,000. Thus, New Zealand's overseas trade continues to preserve a favourable balance.

A serious position developed in connection with the provision of funds to meet overseas commitments, but, as has been recently announced, the Government has taken preliminary steps to meet the difficulty by arranging with the co-operation of the banks, for the pooling of exchanges. Stability of Empire. Important world conferences r.re set down to be held early in the New Yea.r to discuss problems of a far-reachirg nature, including disarmament and war debts, reparations, tariffs, etc. A satisfactory solution of these problems is of great moment at the present time. In addition, it is hoped that mutually advantageous arrangements will be effected as a result of the Empire Economic Conference, to be held at Ottawa during the coming year. A potent factor for us in world affairs is the stability of the British Empire, and recent events have indicated that the British race, as in the past, faces a real crisis with determination and solidarity. In these times, particularly, a great degree of co-operative effort is required, and it is hoped that this spirit will prevail during 1932. When many of the present obstacles to a real revival of world trade and commerce are removed we can look forward to an era of better times, in which the Dominion will share.

I feel that we can face the New Year witli confidence, fortified with a resolution to shoulder whatever burdens the future may hold in store for us. I extend cordial greetings to my fellow citizens on the beginning of the New Year, and sincerely hope that the present clouds of depression will lift materially during 1932.