A NOTE OF WARNING.

Gisborne Times, Volume XXIX, Issue 3294, 12 August 1911, Page 8

A NOTE OF WARNING.

TO THE BUSINESS COMMUNITY.

RECENT STATISTICS REVIEWED.

OVER-CONFIDENCE during PROSPEROUS TIMES.

ISPICIAL TO TIMES.] AUCKLAND, August 11. At- the regular meeting of the Auckland Chamber of Commerce this afternoon, th& chairman (Mr. Leoi. Myers) had something of interest to say upon the subject of caution in business and financial circles at the present time. Mr. Myers said that last Friday the newspapers had published the value of the imports and exports in New Zealand during the- quarter ended 30th June, as compared with the corresponding quarter of 1910. showing that while the imports had increased £862,639 for that quarter, the exports showed a decrease of £986,209. The publication of figures such as these should make every business man pause and reflect as to their meaning. These figures combined make a difference of nearly two millions and while exports for 1911 show an increase of only £29,818, imports have increased by £2,611,245, the position suggests to the discerning the need for caution. Continuing, Mr Myers said that during a long period of prosperity such as we have experienced in New, Zealand, the tendency to increase our private municipal and national expenditure had so easily developed that the responsible section of the business community, without stunting their legitimate enterprise', could not too loudly emphasise the necessity for prudence and re>straint. The financial stringency that existed about three years ago- could only be regarded by sensible people as a hint of What was possible at any time should there be a fall in the values of our staple products, such' as wool, butter, cheese, etc. Fortunately Auckland’s prosperity had been laid upon such a solid basis that there was little reason for alarm, yet they could not overlook the fact that what detrimentally effected any substantial part of New Zealand must eventually affect the whole Dominion. It appeared to him that- this was the right moment for the Council tof the Chamber of Commerce to give expression to a note of warning to the commercial community, for the figures already referred to would seem to clearly indicate that over-trading was being generallv indulged in now. The evil effect of over-trading was hardly noticeable during times of unusual prosperity such as they had passed through during the last decade, but that was just the time when the business community had to keep. their minds well balanced and recognise the necessity for exercising a considerable degree of prudence and caution. Communities, like individuals, were very apt to overlook the teachings of history which clearly demonstrated that overtrading was the first cause of a weakness that became manifest when the pressure of necessity compelled the brake to be put on. A word of warning such as he had attempted to convey could not nossibly militate against sound commercial progress. Members generally considered there was nothing of an alarmist nature m Mr. Myers’ remarks, but they served the good purpose, in as much as there was a danger in times of prosperity c-f over-confidence.