THE DEPRESSION.

Bruce Herald, Volume XLV, Issue 21, 8 March 1909, Page 2

THE DEPRESSION.

Some twelve months ago business men of high standing foretold that the Dominion would be called upon to face a period of depression. They were led to this opinion by the downfall of the boom plungers of America, which had led to a stringency in the money market, not only of the States but of other large centres. This was followed by a fall in the price of wool and flax, and as a consequence we have been experiencing for some time in New Zealand a tightness in the money market. Those who predicted the depression were denounced as traitors by the Government and their supporters. Their views were held up to ridicule, and we were told that in December, 1908, there would be a revival of trade and the financial sun would again shine in the unclouded heavens. Unfortunately the optimistic speeches of the Prime Minister and some of his followers have not had sufficient power to scatter the storm which was threatening, and even the right lion, gentleman's powerful colleague, the Minister )f Railways, has now acknowledged that there is a depression which will last for some time. The people of New Zealand must now look to a period of quiet times, but persistent effort will overcome the difficulties before them. There is little use in talking platitudes. What is required s economy and well directed and hard .vork. We have had a good season for ulie growth of our crops, but the price >f oats is so low and the prospect of i rise so remote that little can be aoped from that line of produce. Wool las increased- in value and dairy proluce and frozen meat are also steady it good prices. Still, as Mr J. G. SarkneSvS, chairman of the Wellington Ohamber of Commerce, has pointed rnt, many of the leading industries are in such a condition that there is little 11ope of an immediate return to a aormal state. The sawmilling industry ind the iron and foundry trades havo ;uffered considerably on account of the difficulty of procuring money for build- : ng purposes and for the extension of business. Kauri gum and flax have likewise been affected, with the result ;hat those employed in the latter inlustry have decreased by & large number. There is little use blaming the royalties on green leaf for this falling iff. The price at which tile prepared !lax can be disposed of having fallen by i third is undoubtedly the reason. But while the depression is here, and will remain with us till trade is better, ;here is no reason for bewailing the .'act. Neither would any good cau.se be served by denying its presence. New Zealand lias battled with depression oil nore than one occasion, and has come through victoriously. It is true that in those previous lean years the country bad not to carry the weight of debt per taxpayer that it has to stagger uliter now. Neither had it undertaken the obligations of a Socialistic nature hat it has at present to meet. But with an industrious population such as New Zealand possesses there should be no reason to anticipate that obligations incurred will not be met. Economy, both private and public, will be enforced upon tho country, and such an 'xperience will undoubtedly be beneficial. The great Liberal Government has enjoyed many fat years of office. The country will now see how it will face the tribulations of lean years. The Govern indent has claimed credit for producing prosperity; but it will har il.v claim credit for bringing about any adversity which may befall the country.