NEW ZEALAND RECOVERY

Evening Post, Volume CXXIII, Issue 70, 24 March 1937, Page 12

NEW ZEALAND RECOVERY

Revenue buoyancy, brisk trade, !'and a reduction in unemployment 'in New Zealand indicated the continuance throughout the past year .. of the recovery which began in 1935, reiriarks "The Times," London, in.a letter'from its Wellington correspondent. : "In part, this'#is attributable to . the drastic action taken' by the Coalition Govern-, ment 0f.1931-35,t0 reduce costs in farming; in part it was-New Zealand's share, through more profitable export trade, in' Britain's recovery; but, in so far as the new -prosperity took-.the form of free spending,: it may be ascribed to the earlier industrial measures of the Labour Government. ■■Restoration of wages to the 1931 level, a great expansion, of public works expenditure, bigger : pensions and greater benefits to the ;, unemployed. increased buying pqwer,: but there yet remains, a doubt as to7the'country's ability- to' -sustain this'spending programme." ;Iri concluding; a survey, lot .the; industrial. and economic, history of..the.Dominion for 1936, the correspondent remarks:. "Considered from the viewpoints; of production, traded and' finance,7 New Zealand shows'.'.eyidence of "a remarkable/ recovery .; ', If ;.-th"e :, Government .proceed cautiously7in: using .the wide authority conferred upon.them by,: recent legislation and exercise restraint ■■ in borro%ying, taxing, arid increasing social benefits, there, should also'be steady'progress in: the'future." . . •:' .- "