THE APPROACHING STORM

Press, Volume LXXIV, Issue 22344, 7 March 1938, Page 4

THE APPROACHING STORM

, TO THE EDITOR OF THE PSES3, Sir, —So many warnings have been sounded about the coming world economic blizzard that the Zealand should have no doubts about the coming change from the sunshine (rather wintry sunshine) of present prosperity to more squally conditions. In fact, the Leader of the Opposition has had his umbrella up since Labour SSlo |ow». Some may say it is to use as a shade from prosperity’s glare, but perhaps it is only a Scotsman’s natural caution—if one’s umbrella is in one’s .hand, one knows where it is. In any case, if rain does come he is prepared, and-no one can say Mr ■ Hamilton has not warned, ot Further. in its 1938 survey, the “Economist” tells us a slump is OverduePointing out that the normal length for a recovery period m a business cycle is four years, it reminds us that the present recovery period was five years old in September, ,1937. But the naive touch in the “Economist s article is that in which it said that present conditions do not possess the usual appearance of a boom before its collapse, because “as there is no'bubble, there is nothing to burst.” Though this means that there was only partial recovery from the collapse of 1930-33, there is a deeper significance in the “Economist’s” statement. It means that the world is being kept on the deadlevel of poverty. Afraid that another collapse with topple their rotten system into the gaping grave already dug for it, the banks will not run the riskeven if they knew how—of giving the world another taste of boom conditions. It puts humanity in the miserable position of the chronic dyspeptic, who dares not enjoy a good meal for fear of the painful after-effects. The latest warning comes from the president of the New Zealand Society of Accountants in conference at Dunedin. Mr Mawson Stewart urged the need of greater saving, lest, should another depression come, the country should be caught short. Yes, but what to save? Goods, boots, beef, butter, beer? For moth and rust to decay? No! (yet wine improves with age, they eay). ■ , One can agree with Mr Stewart about the heavy burden of taxation, it deprives the individual of necessary purchasing power, and under a proper money system little should be necessary. When, however, he suggests a curtailment of public works, he loses “the working touch with realities.” Public worker’s wages are spent on babies clothes, beef, boots. butter, bread, bedding, books, Bibles, and beer. Almost all these things are produced locally and provide further incomes for those making them. Any large scale curtailment would be disastrous to trade, fresh bankruptcies, reversal to charity stunts, old-clothes drives, home-brew and other makeshifts.

If we save, it must be in imported goods, and if the present Government presses on with the local manufacture fit steel and petrol,, it will prove that