FACE REALITIES

Dominion, Volume 24, Issue 285, 28 August 1931, Page 8

FACE REALITIES

Economic Situation THREE ESSENTIALS Governor-General’s Advice EVOLUTIONARY PERIOD “There was never a time in her history when it was more essential for New Zealand to take stock of her economic position, overhaul her industrial fabric, and recognise what on the one baud are her legitimate commercial activities, and what on' the other hand are her commercial Ilmtations,” said his Excellency the Governor-General, Lord Bledisloe, at the opening of the Winter Show and Industrial Exhibition yesterday. While compelled to abate some of his wonted activities, said his Excellency, he was glad to be able to include In his restricted programme the opening of the winter show, partly because of the zeal and enterprise of its promoters, partly because it brought forcibly to the minds of the public what were the potentialities of New Zealand Industries, and partly—and perhaps chiefly—because It sought to bridge the unfortunate gap which tended to separate town and country to the economic disadvantage of both, and to the ultimate detriment of the whole body politic. An Outstanding Conclusion. “The one outstanding conclusion unanimously adopted at the World’s Economic Conference of 1927,” he continued, “was the essential Interdependence throughout the world of industry and commerce on the one hand and farm husbandry on the other, and the poverty and. distress occasioned by the failure to recognise their Intimate relationship and to frame national policy accordingly. If this is true of the world generally, It Is true to a vital degree of this Dominion, with its relatively small population, Its geographically Isolated position, and its dependence for its very existence upon the remunerative production of the output of its soil.” Speaking of the need for New Zealand to take stock of the economic position, his Excellency proceeded: “Never was there a time when It was more essential to develop a keen sense of nationhood and a deep-seated consciousness that whatever activity or undertaking is detrimental to the nation at large Is not only unpatriotic but in the long run is bound to involve loss to the Individual or group of individuals responsible for IL The British race has throughout its glorious history always displayed a patriotic readiness In face of national emergency to sink all party and other differences, and all selfish considerations and unite whole-hearted-ly and courageously in the determination to surmount its difficulties. A New Outlook. “I am proud and pleased that New Zealand, like the Old Country, is demonstrating to the Empire and to the world that she is during the present world-wide economic crisis strongly imbued with this traditional characteristic. What may be the outcome of the present crisis it is difficult altogether to foresee. “But one prophecy can be confidently made, and that is that there will be henceforward an entirely fresh orientation of view throughout the world regarding the bases of industrial, Tmmmercial and financial well-being; a new outlook based upon the consciousness that civilised communities, however wealthy they may be, cannot with safety to themselves ignore each other’s economic or social conditions, that high protective tariffs cannot without serious injury to a nation justify the establishment or continuance of uneconomic or unorganised industries, that distributive trades must look for their prosperity to large and quick turnover at a narrow margin of profit on each commodity rather than to a wider individual margin with corresponding accumulation of stale stock and stagnant capital, that long trade credit with resulting bad debts Is not .good business, and imposes an unfair burden on the least affluent classes of the community to whom such indulgence cannot be extended, that a reduction of overhead charges is an essential condition of commercial stability, and that riotoui land speculation is bound, in the long run to augment the cost of living to the whole community. New Zealand, like other progressive countries, must recognise these., among other conditions of successful modern trade, or be prepared to face the consequences. You here in this fortunate- land 'have in your soil, your climate, and your intelligent and resourceful people assets of untold economic value. A Confirmed Optimist. “Lremain in these dark days of transi-. ent’'depression a confirmed optimist regarding the future of this Dominion,” his Excellency continued, amid applause, “subject only to two considerations or conditions. The first is a full realisation on the part of every individual in. the country of the gravity of the nation’s present financial position and of the possible repercussion upon national welfare of his own activities, whether as producer, distributor, carrier, financier, or purchaser. The other is the avoidance of a too conservative attitude, arising from inevitable geographical detachment from the throbbing centres of the world’s big industrial activities, toward rapidly changing methods of production, distribution, exchange arid finance. “We are passing through a pacific economic revolution. Its recognition and individual action based upon it are. the surest means of avoiding revolution of a less pacific and more disruptive . character. Temporary industrial depression is not wholly bad for the nation or for the individuals who compose it. ‘Sweet.’ it is said, ‘are the uses of adversity.’ In two respeqts are they especially salutary, first in promoting a sense of national solidarity, sympathetic co-operation between all classes, and a determination to face without grumbling our full share of all reasonable sacrifice demanded of us, and, secondly, in developing resourcefulness, ingenuity, and self-help, virtues which are apt to be at a discount in . times of. prosperity. In this respect this exhibition is doing invaluable work in tho public interest.”