TURNING OF THE TIDE

Dominion, Volume 27, Issue 9, 5 October 1933, Page 4

TURNING OF THE TIDE

Trade Conditions Showing Improvement BUSINESS MAN’S VIEWS Dominion Special Service. Masterton, October 4. Opinion that the turn of the tide for better times had definitely come, and that there was every justification for expecting improved trading conditions almost immediately, although the root causes of the economic disturbance had not yet been removed, was expressed by Mr. C. M. Bowden, managing director of the Wairarapa Farmers’ Co-operative Association, Ltd., when addressing the annual meeting of shareholders in the company at Masterton this afternoon.. Quality of products, reciprocity in national trade, and lower costs, were looked upon by Air. Bowden as the principal factors contributing toward a return to more prosperous days. “It is always interesting to look forward,*’ observed Mr. Bowden, “and outlook is sometimes more profitable than retrospect. Probably each of us has sensed the general feeling of uplift extant. Some of us could not indicate any particular grounds for our hopes or our belief, yet there is returning a feeling of confi-dence—-and as this grows we shall see definite improvement. So. far as one can judge from reports conditions in the United Kingdom continue to show marked improvement, and we should . benefit directly from their greater prosperity. The position on the Continent, however, is very obscure, and the measure of success which will attend the steps taken in the United States is yet uncertain. One of the most disquieting factors at the moment is the strong challenge for industrial supremacy now being put forward by Japan. What measures Britain in particular will take yet remain to be seen. Wool-Growers’ Prospects.

"The present trend in prices in the wool market justifies hope of better times for our wool-growers, especially as statistically the position is sound —both as to docks, stocks on hand, and the world estimated yield,’’ continued Mr. Bowden. “Dairy prices are on the up-grade, and if present drought conditions in certain countries continue to rule, the position of our dairymen should be further strengthened. Apart from that, all will unite in hoping that the negotiations between the special British ambassador and our farmers and Dairy Board will produce a workable basis to mutual benefit and satisfaction. Yet the talk of ‘quota’ is disturbing, and none of us can foretell the season. “Certain other of our products also may be affected by quota restriction, and profitable expansion will perhaps be ' checked for the time being. The export of both beef and lamb next season is likely to show a reduction in volume. •<raxation Question. “It seems certain that taxation in New Zealand must remain high for several ? ears hence,” Mr. Bowden added. “Efforts for reduction of manufacturing and production costs should not be relaxed for one moment. Rural lands in particular are still too high in price, and caution must be exercised in purchasing and financing thereon, while one cannot overstress the advisability of using land only for that class of production for which it is fitted by climate, situation and rainfall. Many areas of land which have turned over to dairying should be devoted again to pastoral use. “As to both our manufactures and our imports, a greater measure of reciprocity in our national trade is imperative. Tariffs, exchange, and quotas are likely to be much discussed in the immediate future. I think we are justified in expecting improved trading conditions almost immediately, though there is no guarantee of permanence. The root causes, whatever they are, of the present—or shall J. say past—depression have not yet been removed, and a long period of rising prices, in my opinion, is not to be expected. Above all, we must maintain quality in our products, and I look on quality, reciprocity and lower costs as the principal factors which will enable us eventually to pull through.”