The Press. Thursday, November 20, 1930. The Dominions Economic

Press, Volume LXVI, Issue 20090, 20 November 1930, Page 10

The Press. Thursday, November 20, 1930. The Dominions Economic

Problem. The Hon. T. Shailer. Weston's presidential address, delivered before the annual meeting of the Employers' Federation in Wellington yesterday and printed in The Press this morning, is so coherent and compact an exposition of the economic necessities faced by the Dominion that it is almost unreasonable to direct attention to particular aspects of it. If we do so, it is because we are sure that it will be read in full and considered as a whole, as it ought to be; and the first thing that will strike every reader is its persuasive candour. It is not, and nobody could mistake it for, a policy speech limited in its appeal and its aim by the interests of the employer group in the community. It views a national problem and states the necessity for a national effort all the better because it makes no special plea for the sinking of differences and so on. Such pleas are very well in their way, but they are generally offered independently of the facts, or with a mere sketch of the facts, which, fully and fairly presented, plead much more cogently. To recover prosperity, there is only one course for the Dominion to take. In the end, whatever unwise and costly alternatives may be tried first, it must be taken, and its difficulties must be evenly borne. But if recovery is to be speedy and sure, then the right course must bo followed soon and with the good will and consent of every section of the people; and to appeal for that common effort and common sacrifice is unnecessary, when the facts are understood, and so long as they are not, is useless. Mr Weston's address shows quite impartially what the facts are. j The, are as distressing and as dangerous to employer as to worker, neither of whom can independently escape their present consequences or independently brftig relief; but although the position oblige- the country to make disagreeable sacrifices, and although this would be so even if other countries were more fortunate, t lie economic condition of the rest of the world offers some encouragement, as well as a stern warning. In the first place, the painful process of accommodating production to new -<nd lower price levels, which is going on everywhere, is the clearest possible indication that New Zealand cannot look on, but must adjust its own standards accordingly. Unless it does, its export trade will dwindle and die, which means calamity. Second, where other countries have tried easy, painless remedies, they have failed, and have had to be abandoned. New Zealand will be wise not to waste time and its natural advantages in trying them. Thir 1 , it has advantages, which enable it to face its difficulties and the future with complete confidence. It can grow grass better and more plentifully than any other country in the world. It lias a wonderful climate We have already u very high and eaß.v standard of living, compared with other countries. Even though we all have to simplify it, we shall still he much better off than most other countries. Moreover, I find that in Europe tho primary producing countries were all complaining that the -prices of their products were les9 than costs Of pro duction. It is probable, therefore, that present, prices for our primary products will improve somewhat. It would, however, be unwise to expe-t this improvement to be very substantial. Competition in primary products must increase and become keener. You have onl> to look at the increased exports of food products from the various countries to recognise this. Still, our trade competitors and ourselves start on the same handicap All of us have to reduce our costs bf production. and the hation which does so most successfully will come out on top We have the land, we have the climatfe, find I believe we have the men to do this, but Parliament must also do its Jjart. . /e quote this passage, not only for the

sake of. its well-measured hopefulness, but because of its conclusion. Until Parliament stands up squarely to its duty, cutting every penny of unnecessary public expenditure and i-ksisting industry to get costs under control, the Dominion will remain in an intolerable Situation of anxiety and danger.