NEW TRADE LEVEL.

Press, Volume LXVII, Issue 20427, 23 December 1931, Page 12

NEW TRADE LEVEL.

RECASTING OF IDEAS. OPINION IN AMERICA. LTHE PRESS Special Service.] WELLINGTON, December 22. Observations on his recent trip abroad were made by Mr W. MeHardy Kormau, managing director of General Motors, New Zealand, Ltd., in the •-ourse of an interview with a reporter. Mr Forntan returned to Wellington last week by the Maunganui from Sydney alter having made a business tour through the United States, Britain, i ranee, and Germany. "My first impression upon arriving in the United States was one of realisation of the severity of. the financial' crisis through which the business world had been passing," he. said. ".It was just two years since I visited New York, and at that time the first signs of tho business depression into which the world was entering were just being .*>lt. Those with whom I came into ■ outai-t then were of the opinion that the setback would be only something of a temporary nature, and that in a few months the tide would have turned.: To-day, those men are of the opinion that the depression having been sustained over so long a period, business is setting for itself a new normal level, and that, in consequence, ideas must be recast to conform with circumstances as they exist to-day, and that it is necessary to stimulate trade by recognising this an'd forecasting the future along these lines instead of waiting, thinking that good times will return. This atmosphere, in all the countries I have visited, is apparent, and the facts are being faced courageously. Business as Usual. "Although the immediate outlook is not over rosy, it has not deterred the business of the -world from going forward and. making improvements in the quality of the products at the presentday values. Innumerable instances i an be quoted where improvements have l/f-eii made despite the bad-times; this particularly in regard to aircraft, radio, motor-cars, etc. One of the most striking points to my mind was that despite the depression research work in all its branches was forging steadily ahead. "To the casual traveller in the larger cities of New York, London, Berlin, and Paris, there does not appear to bo any lack of money, especially for amusements. The theatres, pictures, and restaurants' seemed to be doing just cbout as well as ever. In Australia. "On reaching Australia it was = pleasing to note the quiet air of cony iideneo of both Australians and New . Xenlandcrs, and the satisfaction of these returning, that the loyalty of the citi- ' rtns in these countries of the Southern Hemisphere was undoubted. It was - confidently felt that these countries would again soon be on an even keel and ready for any revival in trade fipm : the Western world. In every country visited, New Zealand,was spoken of in terms of solidity. As a matter of fact, it really makes one feel proud to belong to this country when out in other '' parts of Wio world. "The business on which I left the country was entirely of a- corporation nature and would be of no interest to the general public, but it may be interesting to note that I was successful in making arrangements for the Vaoxhall factory to ship to New Zealand chassis in an absolutely unassembled condition, and that within the r.rast few weeks I hope that the assembly plant at Petone will not only be building these chassis, but, also inanu- " factoring the bodies for them in the plant." CURRENCY PROBLEMS. DANGERS OF UNCERTAINTY. (MOM OVM OWN COMESPONDENT.) LONDON. November 10. Speaking at the Cutlers' Feast, at Sheffield on the subject of "Currency,", Sir Hilton Young (Minister for Health) said that it had escaped general attention that the whole shock of the departure of sterling from gold had by no means been absorbed, as was expected, by a rise of prices in sterling countries. It had been in part absorbed by a fall in gold countries. This was a tribute to the credit of sterling, and a warning to ,the gold countries not to presume too far on bullion • alone. They must know how gold and sterling were going to share this balance of confidence before they could reNtabilise, and to know that they must know how much of the world was going to be for gold, and how much for sterling. ' "Further, of course> before stability is attained," continued Sir Hilton, "w« must find a cure for the excess of imports that still grows. Of that 1 can onlv say that the situation will not •brook delay. "We cannot afford leisurely investigation of remote possibilities. We have six months at most to save our bacon. That adverse balance is the chief enemy at present of the stability of the pound. As long as it 'goes on. while we lire off the gold standard, you are expecting the foreigner to accept, in exchange for. some £100,000,000 north of goods in the year, paper notes of ours that are : useless to him. How long do you think that you can do that and maintain the acceptability of those paper notes? All that he can do with them ; i* invest them here, and what temptation js there to him to invest them here, with our extravagant, and over"whehning burden of taxation? "When the currency is stabilised the next step will be to anchor it afresh to come fixed standard. Will the anchor again be a gold one? No one can vet sav. All that is certain to-day is that at present there is no gold standard available. There will be none as Ions: as any of the- chief creditor nations adheres to the bulhonist fal- , lacy of the Middle Ages, that gold is wealth." . / OUTPUT OF COPPER. VOLUNTARY LIMITATION ADOPTED. •ciriTiD racss -association-bt slfx-iric TBMOBAPH—CorTRIOHT.) (Received' December 22nd. 7.30 p.m.) NEW YORK. December 21. The Copper Institute, in a- statement, baa, indicated that the voluntary cur- ' taUment of copper production through- ■ ■ «ut the world would ko into effect on fa ilanuary Ist with the output of the jfepejbal generally limited to approxim&osJ. 2&i P er cent, of estimated