PROGRESS WITH CAUTION

Evening Post, Volume CVII, Issue 145, 20 June 1924, Page 6

PROGRESS WITH CAUTION

It is highly satisfactory to learn, on the authority of the Prime Minister, speaking at Pahnerston ftorth last night, that the balance ox trade in favour of the Dominion for the past twelve, months is seven and a quarter millions sterl-' ing. This result may be attributed in part to the industry; of producers, a generally satisfactory season, and, most important of all, the support given by oversea markets, particularly in respect to wool. The acting-chairman of the Bank of New Zealand (Mr. Watson), however, adopted a conservative attitude to-day in addressing shareholders on the trade of the Dominion. He described the year as "fairly good" so far as, producers were concerned, and showed, that some of the industries were experiencing difficulty not attributable to low prices. In fact,5 he was astonished, he said, at the prices paid for sheep and lambs bought for export. The dairy industry, he remarked, "is causing some concern, but not necessarily due to unremunerative returns." At the bottom of. much of the being experienced by many producers are the high prices they nave paid for their land, in the acting-chairman's view. - Not only rural but city and suburban properties gave him cause for anxiety. But without a trace of pessimism the acting-chairman, of the Bank regarded ." the immediate outlook with equanimity." We believe he was justified in taking that view, and he derived support in it;by what was said at Palmerston North yesterday by Mr. Massey. The causes for anxiety .are to be found not nearly so much in the present and future of overseas markets as within the Dominion itself. It is beyond question that 'we have one of the finest countries in the world," as the actingchairman of the Bank put it ; but the stewardship of the estate demands the exercise of economy, linked with application of the most j efficient means of production and | distribution available.. New ZeaI land has to compete in open marlet with peoples of other countries, mainly non-British, who can sell identical commodities cheaper than we can. In the case of some of them lower labour costs are less a point to their advantage than is the substitution of rule-of-thumb methods by the latest approved scientific husbandry, combined with consistently steady and intelligent labour. It is generally admitted that New Zealand has yet much to learn about economical butter and cheese manufacture and the importance of a high standard of production of its 'dairy cattle. Taken together, Mr. Massey's optimism as to the balance of trade and the banking opinion on the internal financial and commercial position give to the public a very fair view in perspective of the Dominion as it is to-day, with ample food for thought. ' • ' .