U.S.A. AND SLUMP

Evening Post, Volume CXVIII, Issue 8, 10 July 1934, Page 12

U.S.A. AND SLUMP

TtEADTJALLY EMERGING'

IMMEDIATE OUTLOOK BETTER

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

AUCKLAND, July !),

America appeared to be gradually emerging from tho depression, and a hopeful sign was the more tolerant outlook on world affairs, with a realisation that continued understanding with Great Britain could do much to assist a return of stability and to promote world peace, stated Sir James Gunson today ou his, return from a trip to U.S.A. and Canada.

Three interests in international affairs were oi: chief concern in the United States at present, ho said—the supremacy of her navy, .the maintenance of her trade position abroad, anil the recovery of war debts and other loans. NotTrithstanding the old-tinio constitutional policy of assumed isolation under tho Monroe Doctrine, however, America, more and more by her own action was being drawn into world affairs. ■

"It is obvious," Sir James said, " that tho United States cannot continue to trade in foreign lands and send her citizens abroad to establish offices and connections tliero without sharing in the obligations arising from the necessity of protecting those interests irrespective of wliat may be voiced in political protest from time to time.

" It now appears that America will associate herself more . closely with other nations for the composure of world unrest. Her 'people are divided on this, but those most closely related to us as British in race and trade are friendly, They are anxious for settled world conditions and a closer and 'better understanding with all units of the British Commonwealth so necessary Cor the x>eaee of the world, i This par ticulavly applies to the situation dovel oping in the East. J'

The declining trade of the last .three years, with depressed prices for nearly all products, Sir James continued, had not only been arrested in the United States, but had been invproved both in volume and in price levels. Only about 10 per cent, of the total trade was export business, but it. was greatly valued. The purpose of the United States was not. only'to hold what she already had, but also to extend further into overseas ■ markets. America was beginning to realise that she could aeconiijji-.h this only by buying from other nations in return.

FARMERS' DIFFICULTIES.

" The position of farmers in the United States add-Canada'is most difficult," said Sir James. "There are 40,000,000 people settled on the land. For the most part in both countries produce and stock have been produced at a loss duriug the past three years. Drought conditions have been severe in.tho United States for months past, adding greatly to the hardships arising from low prices by damaging crops and stock. . ■ • '

'' Enormous sums have been voted by tho respective Governments for farm relief, but the farmers have not shared in tho benefits arising from an improvement in manufacturing . industries. Owing to a slight but steady advance in prices, however, the immediato outlook is. better.. It. may _be said fairly, without regard to extreme cases, that land values in both countries have dropped by 50 per cent. The value of farm lands is now on the- whole reasonable, land all that-Is needed is stimulation of markets and fair average prices, to which events are tending.

" There is a remarkably close resemblance to the conditions wo have experienced in New Zealand, and the problems are common to both hemispheres. ■.• ■": ' . j " The ' financial situation in the United1' States is perplexing and contradictory. On the one hand the Federal Treasury is heavily stocked with idle wold, and accumulated funds in financial institutions aTe enormous; on the other hand, the inability to employ this money in. useful trade and productive investments, owing to lack of confidence and depressed trading, has caused widespread hardships.?" ■ ■;■;