The Press Tuesday, February 15, 1927. New Zealand's Economic Position

Press, Volume LXIII, Issue 18926, 15 February 1927, Page 8

The Press Tuesday, February 15, 1927. New Zealand's Economic Position

At a time when it is ca.iier to be rioomy than to bo cheerful over the trade pro-peels of :!:.• Dominion, the optinii-iii :>( y.:- 1.. \'>. Ueale, H.M. Trade Com:!ii ; <ioner, in his report to the Board ;>f 'hade. • !<.:'•<" .-. s and will receive a _-iP'-ral \\c!"Oi ; :c. Although it js pari <l his dn'y i> consider the psychology of business and trade, and to iiiake the !::"•' of anything that may encour:.» r ,'-: fhecrfulness. it is liis Hrsi duty 'o \v ''aithtul to lads. We may :k-im.pimply accept as a careful and dis[ia-.-i>i!i:itp observer's tea! opinion, and ni'l as the .-mouth words of a mere weli-wi.-hcr of the Dominion, his the economic position is being " energetically and intelligently "met," that there are many evidences of the primary producers' determination to increase production by improved methods, and that "the general "economic position of the Dominion " mav be correctly described as in a

| " thoroughly ?oun<l .itate." A good many people hold another opinion, but it is probably true that, as the Commissioner suggests, the pessimists one meets are pessimists because they had come to believ that fine economic weather would never cease. For n great many years New Zealand has had a glorious time. In the past twenty years the blue sky of our prosperity has been overclouded only three times—the present mild depression being the third —and each time the shadow has passed away fairly soon. One may hope that the current depression will pass away during the present year, but this will not happen without some effort by the Dominion. The depression of 1907-8 was almost purely financial, and was of very little account from the economic point of view. The slump of six years ago was a visitation upon the Dominion for its economic sins—its wasteful and extravagant consumption and its neglect to think that there might be a sharp fall in the value of our primary products. The present depression is the result of a re-commission of these sins, and the one consoling fact is that most people realise this as they did not in 1621. .They realise that a sharp economic reverse is toot a disaster that may occur once in a generation, but a disaster that may occur at any time if no precautions are taken against it. The need for precautions is plainly stated by Mr Beale even in his encouraging report. The time, he- says, "seems to, have arrived when the " Dominion must face greater competi- " tion than hitherto in the products " which have made her famous and pros"perous, and constituted her only sub- " stantial source of revenue." Hitherto competition has not greatly troubled New Zealand; our meat and wool and dairy produce have been saleable at remunerative prices. But we cannot feel sure that the normal level of prices over a period of years will remain high enough to enable our country to maintain its scale of consumption without a large increase in production. This is so grave a consideration that, as we have been urging for years, the Government should make everything subordinate to the development and expansion of our primary industries. But the Government does not yet realise its duty in this matter. It is as bnsy as a bee over comparatively trifling things, and oil the econdmic side it seems to be thinking more of the secondary industries than of the great basic primary industry without which the secondary industries and everything else would collapse like a house of cards. Its policy should be directed chiefly and constantly towards making easier and more profitable' the production of wheat and wool and meat and butter and cheese, and. unless such a policy is taken np and pursued intently for t. good many years New Zealand will cease to prosper.