The Gisborne Times PUBLISHED DAILY. TUESDAY, SEPTEMBER 30, 1930 EMPIRE'S FINANCIAL RESOURCES.

Gisborne Times, Volume LXXI, Issue 11324, 30 September 1930, Page 4

The Gisborne Times PUBLISHED DAILY. TUESDAY, SEPTEMBER 30, 1930 EMPIRE'S FINANCIAL RESOURCES.

It is important to note that Sir Otto Niemeycr did not deem it necessary to take the people of this Dominion to task in connection with its economic problems. That fact was, no doubt not overlooked by the residents of the Commonwealth, whose feelings were not spared by the eminent financial expert. What may be assumed is that Sir Otto was fairly well satisfied' with the Dominion’s roconomic position and with the manner in which the Government is handling the problems that confront, it. It requires to be borne in mind, however, that he found on his arrival in Now Zealand a state of things very different from that which he. met in Australia. There was no need, on his pari,, to warn the Government of this Dominion that it was essential- to balance its Budget. Prior to his arrival, stops with that object in view had, as is well-known, been taken and the people had accepted the position without- much demur- True it is that they had faults to find with some of the. remedies decided upon, hut it would have been too much to'expert that unanimity would be reached on that- point. Tn Australia, Sir Otto had to advise Governments all of wliom were (and still are) dreadfully hard up, unable to pay their wav, and handicapped by accumulated deficits. His duty was obvious and he dul not shrink from h.s , task, unpleasant as it was. The result is tliat he is, to-day, far from popular in the eyes of a large section of its people. Before leaving this Dominion Sir Otto, it wall have been observed, dealt at length with international economic problems and, incidentally, he issued a. general note of warning to the effect that all .nations run a risk of becoming mvo tec When, a serious economic crisis arises. There is, however, nothing new m that statement. Proceeding, he explained why the League Financial Committee went to the aid of several Continental countries (and m particular, of Austria) which, after the war, found ihemselves in a state of bankruptcy and despair. > ° man,” he said, “can say where starvation in Vienna or misery in. Budapest or destitute refugees in Bulgaria .' or . Greece might end. It may well be that those small causes might m the end even touch distant New Zealand Events in quite an unipiportant town in south-eastern Europe crucially .affected New Zealand m 1914.” There is, ,no doubt, much truth behind that declaration But most people would have liked to have seen Sir Otto go a step furthei. On his own line, of reasoning, ; no unit oi the British Empire can become financially embarrassed without cm >arr ssmg at least some of the other uni s. Aii apt illustration he- v m ‘ the fact that this Dominion" finds its exchange rates unduly raised beesni. e of its close association with its ess fortunate neighbor, _ Australia. . an oven more important mattci. this .Dominion (like all other f raw materials) is unable ..to .< profitable prices for its produce owi „ fo the. heavy depression that over the Motherland hnr Otto sai ■that some people wondercd why Lut; nin as -part of her League ol .JNa tioris duties, bothered about the dornestio troubles of .small foreign Powers. it SO happens, howevei, that many-- more ...people woiidbr why . the Homeland interests herself so little in the mutter of gmng financial prefetence to her Dominions The explanation is, of course, that unVe.tricted money lacks partriotis . drifts whither it can obtain, the hig est return, provided that what is - : gardecT ah reasonable .security m offered Seemingly, , Sm. Otto w ill not prepare a import for the Government of this Dominion •on its currency, and 1 rixchdnge- problems until he> to’ Doridoh. WRh not a little interest his recommendations' vvill. ho • Uwaited and it.- is to. be hoped that : Governirierit will bq shown a way blit nf ' its enrront' ; difficulties. •