Greymouth Evening Star. AND BRUNNERTON ADVOCATE. SATURDAY, JANUARY 24th., 1931. CASE FOR OPTIMISM.

Greymouth Evening Star, 24 January 1931, Page 6

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. SATURDAY, JANUARY 24th., 1931. CASE FOR OPTIMISM.

amid all the woes and lamentations forthcoming the world over as to the financial stringency, there is evidence that there is plenty of wealth. In Britain, no less an authority than Mr. R. McKenna, an ex-Chancellor, and chairman of the Midland Bank, probably the biggest of the “Big Five,” declared that large sums were awaiting investment, and that

his own bank had far more money in hand than was needed by clients for advances. He attributed this excess to undue thrift. Certainly, the cries of the pessimists have caused nervousness, and restricted spending by those who have surplus cash. The “spend-more campaign” advocated by some in the Homeland, if kept within proper limits, would do immense good. What applies to Britain is. in part, applicable to New Zealand. Our banks have not the huge surpluses of British institutions, but neither do they have calls upon their resources to the same extent. Those who applaud wage reductions must, to be consistent, demand at the same time decrease in interest and other financial charges. That the Dominion is far from being insolvent is demonstrated by the figures reviewed in the current issue of the “N.Z. Financial Times.” These statistics are compiled from figures certified by the Customs and Statistics Office, and relate to the end of 1929, since

when, of course, there has been a fall in values. But these are believed by those who should know to be on the verge of recovery. Indeed, nearly every statesman, politician and financier, predicts better things before this year is ended. Anything wrong with New Zealand at present is a temporary sickness and not a constitutional defect to be regarded as incurable.

The following facts and figures should encourage the fainthearted, or those dubious about the Dominion’s prospects. At the end of 1929, the private wealth in the country totalled 754-J millions, Government .wealth 244| and Local Bodies’ wealth 73. Deducting the debt domiciled in the Dominion of 154 millions, the net national wealth was 918 millions, about £lOOO per head for the adult population. Cash in the banks was: — Trading Banks £57,500,000; Post I Office Savings Bank, £49,500,000; Trustee Savings Bank £9,000,000, a total of £116,000,000. There is every reason for optimism and none, for despair, and few countries are better off. There should be a cessa-

tion of “depression” talk. National blessings and endowments should be counted one by one, and placed against temporary or set-backs. Talk “good’ business,” and good business will result. The unemployment figures are serious, but are inclined, by themselves, to give an exaggerated impression. The registrations of “unemployed” have been encouraged by the requirements of the Unemployed Act, and include many who are always casual and intermittent workers. Without attempting to belittle individual cases of

acute distress, it is obvious that some of the registrations of “unemployed ’ ’ are of a nominal character. For instance, it is reported that one Taranaki farmer recently dismissed the hands he was employing at harvesting, and suggested they 'should register at the nearest unemployment committee 1 . They did so. Next day, the farmer applied to the committee for men on the subsidy basis. He selected the very men whom he had previously dismissed, but paid them- only 7/- a day, the other 7/- being found by the country through the unemployment levy. • t

Why are trade unions not taking a prominent part in the agitation about the unemployed? This suggests that their members are not yet seriously hit. In one case, that of the Cooks and Stewards’ Union, the executive do not think it necessary to grant the request for assistance to unemployed members, despite the fact that the Union is comparatively wealthy. The balancesheet showed that on December 31 last the union had £1533 in cash in the National Bank and £941 in the Post Office Savings Bank. Investments were valued at £10,887, and the excess of assets over liabilities was shown as £13,393. It would almost appear that the executive have doubts about the extent of the reported distress. Be that as it may, it is clear that the case for more optimism has some foundation, and there is little need for timidity in spending and investing, to help the national industries.