AFTER THE STORM

Evening Post, Volume CV, Issue 141, 15 June 1923, Page 6

AFTER THE STORM

Sir George Elliot, speaking as Chairman of the Bank of New Zealand at the annual meeting of the Bank to-day, could not be accused of over-optimism. He referred in his speech to shareholders to the passing of the 1921 depression, and then passed to some of the effects it has left behind. Very suddenly, but not without warning, it swept around the world, taking New Zealand in its orbit. There is still a lot of wreckage to be cleared up; and it is that, rather than the prospects of weather to come, fair or stormy as it may be, that is engaging the attention of the banks, and should not be overlooked by the Government and people. There is a most encouraging trade balance in favour of the Dominion of £8,500,000; and the public revenue is £1,313,000 in excess of the expenditure—all very satisfactory, so far as it goes. But there is a mountain of debt to be removed, and it will not b& moved by a mere word of command., The credit of the Dominion in London stands high—a matter for great satisfaction ; but there are some particularly knotty little problems of a domestic sort that will have to be solved. To some of those problems Sir George Elliot referred to-day. They chiefly relate to the financial aspect of producing interests. The banks, on Sir George Elliot's showing, have lost rather heavily and made considerable sacrifices over enterprises of farmers who, by the irony of things, themselves appear to be the most censorious critics of the banks. The mercantile section of the community has mad© heavy losses and has profited by the lessons learned thereby; even the retailer, " over whom the storm passed lightly," had his troubles; but rural interests continue to give concern, because of the clearing-up yet to be done; because, too, it may be added, nobody knows whether future market prices will ensure the means of discharging current obligations, as well as give a fair return on cost of production. In these circumstances, the necessity is emphasised for confining public expenditure to absolutely urgent and essential works, especially if the reductions in taxation or revenue that have been hinted at are made. No doubt, all sympathy, as suggested in the Speech from the Throne yesterday, will be extended to sol-dier-settlers who have met with misfortune; but their troubles are all part of the wreckage left by the storm. Optimism is good, but if it hinders the clearing-up of what is remaining of the 1921 depression, it will become as mischievous as it may be misleading.