FINANCIAL OUTLOOK.

Hawera Star, Volume XLVI, 17 April 1926, Page 12

FINANCIAL OUTLOOK.

VIEWS' OF SIR H. BEAUCHAMP,

STRICT ECONOMY NECESSARY

“It is gratifying to note the warn ing recently uttered by the Prime Minister in regard to the necessity for strict economy. If that is practised 1 I have noi doubt we shall be able to weather the financial depression which appears to be looming on the commercial horizon.” In these words Sir Harold Beauchamp, in an interview, referred to jX’ew Zealand’s general financial outlook.

Touching upon the large drop in .exports and the increase in imports for the eight months endcdl March 31 last, Sir Harold 1 said he forecasted such, a position some months ago. The increase in the importation of motor cars, motor cycles, accessaries, and petrol for the eight months amounted to no less than £1,000,000, compared with the correspond mg period of 202425.

“The big drop in exports is already being reflected in many ways,” Sir Harold said. “First, by the totalizator returns. Which are an excellent barometer in New Zealand; secondly, by the decline in the purchasing power in certain branches of trade. The wholesale and retail drapers are«.the first to feel the- pinch, and complaints are rife from one end of the Dominion to the other in regard to the fallingoff in business. “RIOTOUS EXTRAVAGANCE.”

“Frequently during tlie past few years my critics have described' me as a pessimist,” Sir Harold said. “There are no grounds for classing me in that category On the contrary, I am everything of an optimist, but I consider it to be one of my duties to point out the dangers existing through tlie riotous extravagance that onej sees in this country. In. this extravagance many people find! it difficult to bear what they describe as the high, cost of living. Over and. over again it has been pointed out that it is noty’the high cost of living, blit the cost of high living.”

Sir Harold declared that there were many men in, New Zealand with salaries of from £4OO to £SOO a, year who owned motor cars simply for “joyriding.” Many of these cars were bought on; the instalment system—say, £lO down and: the balance spread over two or three years. In finding the money for the payment of instalments the butcher, baker, grocer and other tradesmen had to suffer. It liadl been suggested, with, a view to checking this class of luxury, that- the Government should.' be invited to exclude motor cars from the benefits of the. Chattel Securities Act. If that were clone sellers would, in self-protection, be compelled- to 'insist- oni the fclreater part of the. purchase money being- paid on delivery, instead of it being spread over a period of years. THE COST OF PRODUCTION. “As to tlie values ruling to-diav for our primary produce, they compare favourably with those ruling in prewar days,” Sir Harold said. “But the producers are suffering from tlie high cost of production, and the inordinate prices they have been paying for ail classes 1 of farm lands. There is at the present time an adjustment being made in land 1 values which ought to ameliorate the present conditions. If land values in, this oouintry could only be brought down to a reasonable figure, it would relieve many of the difficulties farmers are having in making both ends meet.

“I venture to say that ne farmers in any part j[of the world have been assisted to a. greater extent than those in this country through cheap m'o-ney being found for them, by the Government through the Advances to Settlers Department, and, by banks and other financial institutions. It is only the farmer who- has no adequate security to offer who cannot obtain assistance through the sources I have mentioned.”