DOMINION TOPICS

Dominion, Volume 31, Issue 142, 12 March 1938, Page 1 (Supplement)

DOMINION TOPICS

The Rose-Coloured Prospect. Mr. Savage’s confidence is unabated. He says that if a slump should again afflict "the world it will be a test of the success or failure of the Labour policy. That is true. All that can be said is that if it is successful New Zealand will have made history. A recent visitor from Australia said that in the Comnjonwealth there was a feeling that New Zealand was “living high, wide, and handsome,” but that a day of reckoning would come. Mr. Savage does not think so. “Poverty has given way in New Zealand to picnicking,” he says. What he obviously means to impress on the electors is that if his party is kept in power picnic conditions will continue. In the meantime it is satisfactory to note the Prime Minister’s statement that the superannuation and health insurance schemes are to be held back for further consideration. The complexity of the issues is so great and so many interests are involved that it would be folly to proceed with these measures until the most exhaustive investigations have been made. — Dunedin “Evening Star.” Australia Opens the Doors.

Australia’s economic recovery has outpaced that of New Zealand, and the number of unemployed has steadily decreased as the result of absorption into industry—not, as in this Dominion, by wholesale diversion into public works and local body jobs of a non-revenue producing nature. At the end of January employment across the Tasman was at pre-depression level, the percentage of workless in the trade unions being only 8.2, very close to the low record of 1927, when 6.7 per cent, were out of work. Australia is now able to reopen the pathways of Empire migration, and the Federal Cabinet has adopted a scheme of encouragement. Australia’s attitude is in marked contrast to that of the New Zealand Government. The necessity for framing some general plan before the reservoir dries up, and for assistance along specific lines, has been impressed upon Cabinet from many quarters. The reception has been one of indifference. —“Auckland Star.” Trans-Pacific Air Services.

The advocacy of the New Zealand Minister of Defence for co-operation and not competition by American and British interests in commercial aviation across the Pacific will gain wide support in this Dominion. A sound precedent that has been established in the Atlantic air service. The survey flights showed close co-operation and there is no reason to suppose that the service in being will depart from the initial code. More important than the question of deciding the ownership of islands which may be of use in Pacific aviation is that of the two great friendly countries devising a scheme under which Pan-American Airways and Imperial Airways would share the service without either company losing its identity. If this were arranged the heavy initial costs would be shared and the anticipated losses in the early stages would be cut in two. No strategic issues arise so far as air routes are concerned. The purpose behind aviation enterprise is to increase the speed of transport. And not to be forgotten is the fact that the New Zealand terminal will be the junction for Australia.—“ New Zealand Herald.” A Boycott Threat.

If Mr. Nash expresses surprise at the boycott move and attempts to minimise its importance he can be reminded of the threat that was made in the Midlands early last December when the news of the proposed tariff increase leaked out. On that occasion drastic reprisals against any interference with a trade worth £1,250,000 annually to the Midlands were threatened. Even the suggestion of a tariff increase proved a setback to Mr. W. J. Jordan’s dairy produce campaign inaugurated at Leicester on October 30, and fears were expressed that the woollen and hosiery trades would sympathise with the footwear operatives. Thus Mr. Nash received ample warning that the penalising of British industry might cause discrimination against New Zealand produce. He cannot complain now if the Dominion’s trade goodwill in Britain, built up so steadily and carefullv, is endangered.—“Taranaki Herald.” A Curtain Lecture.

The curtain lecture addressed to the Homeland by the New Zealand High Commissioner belongs to another category. Mr. Jordan reminded the people of the United Kingdom that New Zealand does not believe in one-way trade, because the Dominion must buy where she sells in order to receive payment for goods. If the Imperial authorities had felt inclined to be rude, they might have suggested to Mr Jordan that New Zealand ought to practise what she preaches in her trade relations with the Homeland. . . . Last year New Zealand sold goods to the value of £22,537.502 in the United Kingdom in excess of New Zealand's purchases of British goods, and the surplus millions built up in London from the sale of New Zealand products are used to meet New Zealand’s excess purchases of American,Canadian, Australian and foreign goods. New Zealand certainly believes in two-way trade, but the Homeland at least is certainly not given that consideration. —“Timaru Herald.” State Iron and Steel Works. British and other industrialists are always ready to invest money in enterprises in the dominions and colonies that promise reasonable return on their money, and the fact that the exploitation of New Zealand's iron deposits has not proved an attractive proposition to financiers seeking investment suggests that it will be difficult to conduct a State venture with success. There is an idea abroad that the Labour Government would like to see this country self-contained and independent of the rest of the world. Its development to its present prosperous condition is due in the main to the success with which under individual enterprise the export trade has been built up. Some of the Labour members in Parliament resent this dependence on outside markets, and desire to see the secondary industries stimulated in the hope of making our exports of smaller importance to the national life. In establishing industries such as the one now proposed, account has to be taken of the fact that they serve a small population and that complete success is dependent on a large output.—Dunedin “Star,”

Public Works and Unemployment. Money for public works, Mr. Semple assured his own w'orkers, was not gathered from mulberry bushes. The time that has passed has brought further expansion of the public works programme and pay roll; and Mr. Semple has forgotten his anxiety. The strange fact is that the limits to which the public works programme was pushed because unemployment was heavy are now far exceeded when the Minister for Employment insists that unemployment is trivial; and Mr. Semple, who a year ago needed the excuse of unemployment to go so far, now goes much further without it. He saw danger then, but sees none to-day. Obviously enough, he cannot be expected to look with much favour on a “curious idea” which in his own progress he has turned upside down. But when Ministers change face in this startling way there is generally some reason, though not always easy to see. Mr. Semple, with the help of the Prime Minister, who has a high faith in such matters, may have found the right mulberry bush, after all. Or appetite for grand scheming and'spending may have grown with what it has fed on. Or Mr. Arm-' strong’s loud trumpeting over the defeat of unemployment may have left Mr. Semple at a loss, unable to declare that his public works are half relief works, and unable to voice a caution about it.—Christchurch “Press.” Forgotten Islands.

The age of air transport has invested many of the formerly unimportant islands of the Pacific with a new interest and a new value. Canton Island, in the Phoenix Group, is a case in point. That barren speck in the South Pacific is again in the news, for the reason that informal conversations have been opened between London and Washington in an effort to settle the vexed question of ownership. The United States claims both Canton and En'derbury Islands, on the ground, presumably, that the whole of the Phoenix Group was actually discovered, surveyed and named by an American. How the British claim to the group came to be made is somewhat obscure, but that it has long had recognition in certain quarters is proved by the fact that most of the islands of the group were leased to a Pacific trading company by the Crown as long ago as 1914. Against that has to be set the confusing fact that two of the islands, Howland and Baker, which were held on lease by the Burns, Philp Company, were recently “seized” by the United States Government as American territory, and so far there has been no official indication that the American title will be disputed.”—“Otago Daily Times.” Then and Now. Nearly two years ago a deputation waited on the Ministers in Wellington and asked “for some indication of the Government’s policy in respect of British imports.” The report of the discussion makes most interesting reading in the light of recent events. Mr. Savage said that trade with Great Britain must be extended, and “if the deputation' supplied Mr. Nash with the schedules of goods in which trade could be increased, it seemed to be getting down to the realities of the situation.” Mr. Savage added that the mere transfer of trade was not enough; they must expand trade. His colleague, the Minister of Finance, said that, once the requirement; of the people of New Zealand had been satisfied, “then the more we can send to Great Britain the better it will be for Great Britain and for us; and the only way in which we can be paid is by getting goods in exchange. I don’t think tariffs are the way.” That Statement was made in May, 1936. In February, 1938, the Minister announces amendments to the tariff schedules raising substantially the duties on British boots, shoes and slippers. Apparently he now thinks that tariffs are the way. —“Waikato Times.” Farm Valuations. In the case of rural districts the valuation problem is a particularly acute one. Not only are there grave anomalies in valuation, but on the whole properties tend to be over-valued. The latter does not materially affect the rating responsibilities of owners, because if there is a general scaling down of valuation there must be a general scaling up of rates levied in order to obtain the necessary revenue. Where over-valuation is serious, however, is in the price paid for farm land and the mortgages remaining over it. Overseas experts all agree that the value of farm land in New Zealand has been too high in relation to productive capacity. In many cases reductions in mortgages have been made both voluntarily and by adjustment commissions. The pro-cess-and the prior circumstances have been painful to both farmer and mortgagee. r But until sane price and mortgage levels are reached the farming industry can never be on a sound basis. The process of adjustment must necessarily be slow, but it cannot be avoided. New Zealand is paying heavily for its reckless behaviour in the boom years, and the price of that folly has not yet been paid in full. —“Taranaki Daily News.” Getting the Government’s Ear. There are always some interested people endeavouring to get the ear of Ministers concerning enterprises rendered attractive by computations that will not survive serious tests. In their desire to increase the industrial output of the country, thus opening up new avenues of employment, the over-sympathetic Government will listen to stories that would not capture the attention of more sceptical individuals. Both attitudes of mind may be overdone, but rash experimentatiou should be avoided. We are already suffering for the new ideas conceived by doctrinaires during the years of depression, and would counsel greater caution in arriving at important decisions. Once it was believed that money could be obtained by capitalising the public credit, but it would appear that this is either fallacious or the method is not a popular one. The finance necessary for carrying out the Labour Government’s programme has to be provided in the old-fashioned way, and, when the procedure seems to outrage public opinion, we are sharply reminded by Ministers that the end justifies the means.—“ Southland News.”