THE OUTLOOK.

Press, Volume LXVI, Issue 20039, 22 September 1930, Page 10

THE OUTLOOK.

INTERVIEW WITH SIR OTTO NIEMEYER. NO CAUSE FOR PESSIMISM. Although there is yet no sign Of the lifting of the dark clouds of economic depression, which have settled over the whole world, causing vast unemployment, and in some countries amazing political developments, and it is not certain that the prices for agricultural products have vet sunk to their lowest levels, New Zealand will weather the storm safely, and any pessimism existing or developing here is unjustified. This is the view of Sir Otto Niemeycr, the financial adviser to the Bank of England, who passed through Christchurch on Saturday morning, on his way to the Hermitage, where he spent the week-end. He received Pressmen at the railway station prior to his departure for the south. More Fortunate than Neighbours. Sir Otto said that tho Dominion was iua more fortunate situation than other countries, and he foit confident as to its future. It was just as well that tho latter was not bound up in wheat. Australia was expecting a bumper harvest, but the trouble lay in tho pride, which was at a low level. It would take time for the relatively cheaper money which had now been obtainable for nearly a year to have its effect, and perhaps another twelve months would elapse before its benefits were noticeable. It was hard to say whether the bottom of the depression had been reached, and the future tor New Zealand was really ruled by what happened in the countries wluc.i were the Dominion's customers. "New Zealand will have to reckon with conditions no better than the presont for quite a time," said Sir Otto. "Everything has to be brought back to its real value."

"Although the great crash on the New York Stock Exchange was the first visible sign of the world depression," he said, "financiers knew it was coming before that. The first indication of an improvement will be a reduction in the unemployment figures in the older countries; it will not bo an epidemic of share-buying in New York. A more, likely development than this in tho United States is the export of capital to other countries. The lending of money by America would be a great help, but recovery will be a slow process. I don't feel sure that we aro actually at the bottom yet; it is extraordinarily difficult to aay."

Britain's Condition "Patchy." The position in Britain was "patchy." There was a tendency there to present the blackest side to the rest of the world, and the actual situation was not quite so bad as people in New Zealand might believe. Australia was confronted with a difficult task, and had to begin early. Adjustments in the Commonwealth would be much more drastic than those necessary in the Dominion. "Its situation is not all her fault," said Sir Otto, "but a good deal of it is. It will be forced to live on wool instead of wheat." There vrtaf no occasion for anyone to be down in the mouth in New Zealand, as this country was more hapnily situated.

Asked whether he had noticed any fluctuation In the value of the £ sterling, the financier said it was fairly steady on the world's exchangee.

Arriving by tho ferry steamer from Wellington on Saturday morning, Sir Otto Niemoyer, the financial adviser to tho Bank of England, who is visiting tho Dominion at the invitation ot the New Zealand Government, was take for a motor drive round the City and on Cashmere Hills before departing for Tiniaru and the Hermitage by tho express. He greatly admired the views obtained of the Plains and Southern Alps, nnd was impres«ed with the beauties of Christchurch and its suburbs. He remarked on tho clean appearance of the streets. Sir Otto will return from Mount Cook by tho express this afternoon, and later will loave by the ferry steamer for Wellington. Sir Otto will deoart for Austrn 1 i on Thursday. On his visit t~ thr> South Island he is accompanied V' Mr A. D. Park, Secretary to the Treasury, Mr D. Ardell. of the Donn'-ttnent of Internal Affair?, f>rd Miss Wilson, his confidential seeretiry.