FUTURE OUTLOOK

Evening Post, Volume CXVI, Issue 114, 10 November 1933, Page 12

FUTURE OUTLOOK

OPTIMISTIC NOTE

PRICES OF PRIMARY PRODUCTS

Mr.; Coates opened his Budget statement on a note of optimism, observing that the outlook for the future was so heartening as to encourage the Government to push ahead with its work of reconstruction.

The Minister said he, was glad to be able to note that export prices generally were on the up grade. The further disastrous sag in. prices which occurred during the. last June quarter was followed'by a rapid recovery, and, though a slight check had since been experienced, there was reasonable ground for the belief that that was only a temporary halt. Furthermore, the general movement covered practically' all of the products in which the Dominion was vitally interested, and was apparently of such a nature that the prospects for economic recovery were brighter now than at any time since the heavy fall iv those prices brought depression to New Zealand. ,

"As the return from our exports increases," said Mr. Coates, "the gap between prices and costs in the primary industries, which constitutes our basic problem, will close, and farming will again become profitable. When some measure of equilibrium, is thus restored at the foundation of our economic structure, recovery generally will follow rapidly, although it" will naturally take time .to clear away the wreckago of the slump and get trado and industry working smoothly again. The outlook, however, is heartening, and gives us renewed courage to press forward with the work of reconstruction.

"Abroad, as a result of economic pressure, there is widespread unrest, and in somo countries far-reaching changes have been made. In fact, conditions in most countries are in a state of flux, but it is becoming increasingly evident that the economic tide has definitely turned, and that business activity is gaining momentum in the leading countries notwithstanding the failure of the nations to deal comprehensively with some of tbo major problems of the world- Fortunately for New Zealand, Great Britain at present appears to be making more

solid progress towards recovery than any other great nation.

"It is a matter lor regret that it was found necessary to adjourn tho World Monetary and Economic Conference before it had really started on- tho work for which it was called together; but, as indicated in the report of tho New Zealand delegation the view* of the various nations as to tbe best and quickest way out of economic chaos were so divergent that no otber course was possible. In tho meantime, each country is endeavouring to work out its own salvation. "In New Zealand wo depend to siteta an extent on our export trade in primary products that our economic welfare is bound up with the prices obtained for wool, meat, dairy produce, etc., in our principal market, Great Britain. This being so, the Government has directed its efforts .towards making internal adjustments to assist in bridging tho gap between prices and costs, and to maintaining pastures, while doing everything possible to assist the unemployed, and generally keeping our productive powers and economic structure intact."