1879 AND 1932

Evening Post, Volume CXIII, Issue 142, 17 June 1932, Page 6

1879 AND 1932

(To the Editor.)

Sir,—When reading the "History of New Zealand" recently X came across the following paragraph, which is rather, intereating in that it might have been written during the last few months. It will no doubt refresh some of our Jeremiahs to know that we have had a previous depression in New Zealand sufficiently severe to induce the Government to make a 10 per cent, cut in the salaries of Civil servants, and-yet we ..have managed to! get over it in: the same way as we shall get over tbe present depression—by a little common sense and a-lot of hard work;— "In 1879, the period of feverish prosperity, speculation and inflation- came suddenly to an end. A fall-in the prices of wheat and wool, the two staple products, and a decline in the gold output, were too much for a community that had-' made the pace so swiftly and light-heartedly for some years. As a matter of fact, though this would have been no comfort to the distressed colonists, 'Sew Zealand was involved in the downward world movement of prices that began in the 'seventies and ended in the middle 'nineties. A great deal of money had been borrowed,-on land security, and when prices fell as they did, lenders as well as b6rrowers were involved in difficulty and disaster. In some districts/ says Beeves, 'three-fourths of the ■ prominent colonists were ruined.' Spending capacity was reduced, and unemployment increased. The colony .had been given a dose of immigration too heavy for complete assimilation, and the sudden depression intensified'the trouble, yet immigrants continued to pour in. The task of the new .Government was most difficult. _ Depression was to prove no tratfsieriF affair, but a movement 1 extending over years. Falling'prices, national deficits, foreclosure on> inflated s&urities, unemployment and widespread distress, were features of the time.- "Hall and Atkinson grappled with the problem. Ther carried out a policy of economy.,that included ah all-round reduction of 10 per cent, in the salaries and wages'paid by the Government. They increased taxation, and raised more money through the Customs. Public works construction went on, biiC at a slower pace."—l am, etc.,

PIONEER.

The above extract is: from Messrs biirnnpton and Mulgan's "Maori and PaKeha: History,- 'of New Zealand"— Pioneer." ■. •• '; - \ ■-■■ --'■ • ■ ,