ECONOMIC POSITION

Dominion, Volume 19, Issue 296, 10 September 1926, Page 3

ECONOMIC POSITION

RETURN TO PRE-WAR VALUES PUBLIC TRUSTEE USING CAUTION “Naturally the interdependence .of economic interests affects the working of the Public Trust Office, which in its operations controls such a large volume of investments, and acts in a representative capacity in so . many spheres of business activity,” states the Public Trustee (Mr. J. W. Macdonald), in his annual report. “It is fitting, therefore, to refer briefly to the financial and economic position in reference to the operations for the vear now under review. . The prosperity of the Dominion is indissolubly bound up with the success or otherwise of its primary products. Tn reference to the staple products, the satisfactory position which was recorded in my previous report, unfortunately, has not continued to exist. The principal fall was in regard to wool, but the other primary products have also to some extent suffered. The fall in the return from our staple products may be only a passing result of the operation of the economic laws of supply and demand, or it may, on the other hand, exemplify a gradual return to lower prices and conditions more closely approximating those of pre-war days. Viewing the matter in relation to the trend of produce-values generally throughout the world, the latter statement probably represents the true position. “Whatever may be the position, it is necessary that the greatest attention should be paid immediately to the remedies which lie within the powers of the citizens of the Dominion. They are, in the main, the restriction by traders of importations, particularly of luxuries, and the' expansion of production by the primary producers. The increasing tendency which is observed on the part of farmers to recognise the importance of more scientific methods of farming may be confidently expected to assist in the latter respect in the restoration of. a proper equilibrium. In this direction the office is paying strict attention in the leasinr, working, and genera! management of farm properties under its control. “Up to the end of the period under' -review the office did not feel to any appreciable degree the effects of the somewhat unfavourable conditions wbicli have been prevailing for some time. Indeed, at the end of this period the position of the office investments was quite satisfactory when compared with the position at the end of the previous year, when admittedly very favourable conditions prevailed. “Within the office the policy of economy is being conducted, all waste being prevented, and all unnecessary expenditure eliminated.”