PRIVATE ECONOMY.

Evening Star, Issue 20686, 8 January 1931, Page 8

PRIVATE ECONOMY.

Ai/i. the portents indicate that in tho dominion in this year of 1931 the people will have to bo judicious in their expenditure. There is no occasion for panic, but there is a need that they should realise the difficulties —temporary let us hope—of tho position brought about by the world depression and tho consequent fall in tho prices of our primary products, on which we depend so much. Everyone remembers Micawber’s dictum about income and expenditure, and it holds good at all times, but more particularly in times of economic stress. In discussing tho affairs of everyday life someone has said that in the matter of earnings there is n right proportion to save, a right proportion to spend, and a right proportion to give, but unfortunately the majority of tho people have not the wisdom to make the proper apportionment. The ideal would be for individuals in times of prosperity to bo discreet in their expenditure, so that when the inevitable pinch comes severe retrenchment would be unnecessary. In this way the general position would bo helped, and the trader and shopkeeper bo in a bettor position to meet adverse conditions. Humanity, however, is prone to gamble in futures. Not only will people spend nil they earn, but they will purchase goods by putting down a small deposit and trusting to fortune to be able to pay tho balance, 'fliis mortgage on the future—the timepayment system, as it is called—is obviously particularly detrimental in times of depression. We have a Jiigb standard of living in this fortunate do-

minion. Everyone like" <'> see the, whole community in comfortable and prosperous circumstances, but one effect of the good times wo have enjoyed for so long is to raise a false, or unstable, standard. In days gone carriages and expensive fur coats and other garments were possessed by the well-to-do.. The mass of the people wore clothes in keep ing with their incomes, and were content with the simplest of pleasures. This state of things is by no means universal to-day. Youth in so many eases seems to consider that it lias a prescriptive right to all that is going, and the result is an over-indulgence in the purchase of expensive accessories that, while undoubtedly agreeable, put a heavy mortgage on the future and mean embarrassing results for someone later on. At the moment the dominion’s income is severely depicted, and the wise man is bo who cuts liis coat according to the cloth available. It is a time for co-operative effort. Panicky saving by those in affluent circumstances is to be depreated at a crisis such as this, but for the mass of the people it is desirable that they should deny themselves nonessentials when they are ; not in a position to pay cash for them. "Buy New Zealand goods!” is a request that housewives and others should keep constantly before them. I'or those who suffer from iutermittmit employment the smallest garden offers many, useful possibilities. What the thrifty French people accomplished in this way provides an object lesson that may - bo learnt with advantage. But “ judicious thrift” are words that are most applicable in the present state of affairs. Being interpreted, they mean " Pay cash for what, you buy.” If this plan was adopted the resultant benefit to the trading community would bo very great.