IMMIGRATION

Evening Post, Volume CXIII, Issue 130, 6 June 1927, Page 8

IMMIGRATION

DANCERS TO DOMINION

SERIOUS SLUMP POSSIBLE

(By Telegraph.) (Special to the "Evening Post")

. AUCKLAND, This Day Tho immigration problem was the subject of an address by Dr. E. P Neale, secretary of the Auckland Chamber of Commerce, and formerly lecturer in economics at the Victoria University College, to the Workers' Educational Association on Saturday evening. Dr. Nealc said that New Zealand could not do much to relieve Great Britain's burden of over-population. New Zealand was situated virtually iii tho centre of the water hemisphere, and was far removed from the world's markets. In spite of Nature's lavish bestowal on her of vast potential hydroelectric resources she did not appear to be destined ever to become a great manufacturing country, apart from a radical and at present unforseen revolution in world economic conditions. The succes of refrigeration in the early 'nineties paved the way for the vast expansion of the pastoral and dairying industries, while wheat growing and cropping generally speaking had declined. A few local manufactures existed, caterjng almost exclusively for the local market, and mauy of them survived only with the assistance of a protective tariff. "So long as the Dominion's special advantages to lie rather in tho dairying and pastoral industries she can never hope; to support tho dense populations that are associated with mining, manufacturing, and, to a lesser degree, with cropping countries," Dr. Nealc stated. However, as Now Zealand switches over from mere grazing to dairying pursuits she will be able to support a denser population than at present. A large proportion of the area of New Zealand, especially in the South Island, was by reason of its altitude, ruggedness, or inaccessibility, destined never to provide sustenance for man. Some land could be made productive by the expenditure of capital for draining and other improvements, but there was little land in the Dominion which warranted such expenditure, until an increase in the prico of staple products rendered it economical. It is obvious that,''there are rigid limits to the Dominion's powers of absorbing immigrants rapidly, continued Dr. Neale. Britain is admittedly overpopulated. New Zealand, however, is scarce!}' in a position to provide very material relief. The population of the Homeland is admitted to ,be increasing at the rate of over 30.0,000 a year, solely on account of natural increase. The annual quota of migrants to New Zealand is about 10,000, and an additional 10,000 from Britain every year would give no appreciable relief to the position of the million unemployed in Britain, but it would be disaster to this country, where tntsre were fully 5000 unemployed last winter, with every prospect of this figure being exceeded this winter, and the authorities at their wits' end to know how to cope with the situation. If previous experiences were to be regarded as a guide, the recent falling tendency of world prices was likely further to limit the Dominion's absorption capacity. It was doubtful if the country could continue to absorb 10,000 annually. Any fixed quota was to be deprecated, because absorption depended on many ever-changing factors. Our immigration quotas should be regulated by a study of statistical data bearing on our absorption capacity, and we must take more care than we have exercised in the past to prevent largo'numbers of new arrivals from reaching these shores in the late autumn or winter, when unemployment is reaching its seasonal low-water mark," added Mr. Neale. "There is no reason on earth why conditions in England-should be allowed to affect our quotas." In answer to a question, Dr. Neale said there was every reason to believe that world prices for produce would continue to fall. Prior to 1920 prices had had nn upward tendency for the previous 25 years, and it seemed unlikely from an economic point of view that they would fall for seven years. In his opinion there was a great possibility of a serious slump.