BRIGHTER SPIRIT

Dominion, Volume 30, Issue 260, 30 July 1937, Page 12

BRIGHTER SPIRIT

Hon. P. Fraser Reviews Conditions ECONOMIC RECOVERY “Government Has Achieved Its Initial Aim” The opinion that there "as 11 brighter spirit abroad in New Zealand to-day than had been the case for many years past, and that insecurity arid fear of the iutuie no longer overclouded thousands ot homes in the Dominion was expressed by the Minister of Health, Hon. ■ Fraser, when speaking at a leceplion held at Parliament Buildings « honour of the I’rime Minister, Kt. Hon. M. J. Savage, yesterday.

“More people to-day are in work: trade is better, internally and extciSy ; bank figures have touched new levels,” said Mr. Eraser‘^a liavo been steaduy rising, and have been given a wider distribution There can be no doubt that the lot ... the worker, the farmer and the small business man is infinitely better than it was two or three years yes, ever so much better than even - nl Mr h Fmser recalled that the immediate objective of the Labour Government when it took office m Uccem her 1935, was to bring about a measure of economic reconstruction which would result in the highest possible standards of social well-bein o foi the neonle as a whole. “Has that immediate objective been attained? he asked. “I am not blind to certain disabilities still existing and entirely due to the heavy carry-over of economic difficulties from the depression, but, if one takes a fair view of everything, conditions generally prove that the Government has achieved largely its initial aim. Me are enjoying in New Zealand to-day a revival of prosperity, partly due to relatively good prices for our expoits his year, but in a larger measure to the Government’s policy over the past IS months. More Spending Power. “The restoration of wages by legislative enactment to their 1931 level added considerably to the spending power of the people. The extensive public works programme, the guaranteed price and organised marketing, the adjustment of mortgage debts, and tne benefits of cheap money have all contributed to the improved standards of I living which are everywhere apparent to-day. It is only necessary to compare conditions to-day with those obtaining 12 months ago—to take the comparison back further the improvement is still more striking. “To indicate the measure of economic recovery which has taken place I should like to quote a few of the more important facts and figures. First of all there are the unemployment figures. Since July of last year the number of unemployed has fallen by 16,692 —a decrease of 30 per cent. When the Labour Government took office the number was over 57,000 and there had been periods of .over 12 months when the average was over 70,000; to-day the figure lias been reduced to 37,546. The State Placement Service, I am pleased to say, is doing excellent work and has contributed largely to the improved employment situation. Over 12,000 placements have been made since the beginning of April. “It is even more gratifying to note that the total wages bill of the Dominion has increased during the past year by £15,000,000 —this represents an increase of 20 per cent, over 1935-36. “The manufacturing industries have also shown a substantial improvement. It is apparent, however, that industry is reaching stability after a very rapid rise in prices and production. No complete up-to-date statistics are yet avtiilable, but from information already collected it is obvious that the year 1936-37 will show a great improvement over the previous year. Increased Turnover. “As to trading conditions generally, one does not have to go to reports of the Department of Industries and Commerce for the information that retailers are experiencing an increased turnover. A particularly striking indication that the public is spending more readily this year is the fact that a greater proportion is being spent on luxury lines—the imports of motorcars are up by 28 per cent.; radio licences have increased by 25 per cent. There is also the evidence of increased business turnover in the sales tax returns, which are nearly 25 per cent, higher this year. “Probably no better indication of the general level of business activity could be obtained than banking statistics—record levels of note circulation and cheque transactions have been reached during recent months. Over the past twelve months the circulation of bank notes has increased by 20 per cent, and cheque transactions by 15 per cent. I should like to refer also to the rise in prices which New Zealand, in common 1 with every other country, is experiencing. The latest official index numbers of retail prices show increases over the past twelve mouths, but such increases are considerably less than the increases in wage rates. . “I should like to point out also that Governmental action in controlling rentals and prices of various necessary commodities' has contributed in no small measure toward keeping price increases within bounds. This applies particularly to wheat, Hour and bread, oranges, petrol, raw tobacco and onions. "Recovery in internal business activities has been accompanied by a material change for the better in the external trading situation. The volume of exports has increased by over 20 per cent, to £64,500.000 fpr the year ended June, 1937, and imports by 26.7 per cent, to over £50,000,000. The rise in wool has, of course, been spectacular. The wool cheque is greater this year by £5,000,000, and the proceeds of wool sales constitute a record figure at over £ls.ooo.ooo—this is 50 per cent, better than last year. Mutton and lamb exports also show an improvement of £1.180,000, while the value of butter exports has increased by 11 per cent, to £16,500.000. and cheese by 17 per cent, to £5,250.000. “The dairy-farmer has benefited to an even greater extent than is revealed by this return, since the guaranteed price has been appreciably greater than the overseas market price. Public Finance. Turning now to public finance, it will be recalled that the national accounts for the financial year revealed a surplus of £472,000. Income tax and

Customs exceeded the Budget estimate by over £1.006,000. ’Die Customs returns hist year at £9.500.000 were the highest ever recorded in New Zealand. "These are but a few of the innumerable concrete facts which demonstrate the range and measure of better times for the people as a whole.” added Air. Fraser. “I do not overlook a certain amount of voluble dissatisfaction of which the most is being marie by those opposed to the Government. I am bound to say, however, that much of it can fairly be described as an anomalous protest about the cost of prosperity. Meanwhile, all of us here this afternoon, and hundreds of thousands of contented people throughout the Dominion, arc united in welcoming the Prime Alinister home to a prosperous country whose welfare lias first place in his heart.”