PATH TO FOLLOW

Dominion, Volume 26, Issue 31, 31 October 1932, Page 8

PATH TO FOLLOW

New Zealand’s Way Out of Depression STEADY CONFIDENCE Until primary producers found themselves, either by an increase in world prices or by a decrease in cost of production, in a position profitably to carry on, it would be too soon to say (Infinitely that prosperity had returned, but there were signs of improvement, said Mr. Albert Spencer, president of the Auckland Provincial Employers’ Association, in his address at the annual meeting on October 27. Commodity prices, lie said, had steadily moved up during the past four months, which must eventually result in the rehabilitation of industry and the return of prosperity. It was gratifying to know.that New Zealand had met its obligations and thereby retained its credit. Bondholders’ Sacrifices. Another vitally important factor had been the voluntary reduction in interest made by British bondholders of the war debts, which in the appreciation of approved Dominion stocks must lead to the lowering of interest on all State gilt edge securities, also the freeing of huge sums of money for developing secondary industries. There was no reason why urgent public works should not be carried out later on, though in a much less costly way than in the past reckless fashion. The future of New Zealand as a food and mineral producing country should be assured, and sooner or la/er it must, if wisely and prudently governed, re-establish itself in the confidence of British investors, with the result that capital would once more flow into New Zealand for developing the resources of the country. To Re-establish Confidence.

“The great aim now should be to reestablish confidence and credit,” Mr. Spencer added. “Any hasty or ill-ad-vised action, any tendency toward Socialism, Communism, or extravagance and repudiation of debts and obligations, as was unfortunately attempted in New South Wales, would be absolutely fatal to any chance of economic recovery. “Fortunately the sound good sense of the people of Britain, Australia, and New Zealand, as shewn by the recent elections, appears to be sufficient guarantee that any such disaster will be averted, and that therefore we can await confidently the lifting of the clouds of depression which have for so long overshadowed us. “In the meaptime we must sympathise with and help each other practically to the full limit of our ability, and patiently put up with conditions of taxation which are at the present time outrageous. Unfortunately there seems very little prospect for some time to come of this crushing taxation being lifted.