CHEAP MONEY.

Hawera Star, Volume XLVII, 31 October 1928, Page 11

CHEAP MONEY.

RESULT OF GREATER PROSPERITY. ’ - ;

PART PLAYED BY DAIRY FARMERS.

in his presidential address to the recent conference of the New Zealand Employers’ Federation, the Hon. T.Shailer Weston said tha‘i most of the difficulties following upon the war had been overcome, and that The prosperity now returning to the country was based upon secure foundations. “Most important of these foundations is- an abundance'of capital stived in New Zealand and not borrowed by the Government available for development of our industries l —farming and manufacturing—at a. reasonable rate of interest, the efficient organisation of those.industries and an industrious /and thrifty population,” he continued. “The improvement in all these three points during the last ten years is most marked. ’ When the war ended, 'the British Government with all its resources was oaying 6 per cent, for the money it borrowed. Industrialy enterprises .in London were paying 8 per cent. Today 4$ per cent, is the rate for British Government loans and‘safe industrial enterprises in England can obtain the funds they require at 6 per cent. “Here in New .Zealand the Government lias been the first qf the Australasian States since the w.ar to borrow at less than 5. per cent. During the last twelve months, as a result of a good season and the efforts of its people, private capital has accumulated to such an extent that once more investors are finding a difficulty in obtaining good securities for their savings. “In consequence, rates of interest have fallen*at least half a per cent, ami given two more reasonably good, seasons, a continuance of the spirit of industry and thrift now manifested by the whole country, and Christmas 1930 should see New Zealand back to the neighbourhood of 'the 5 per cent, rate upon safe securities prevailing in 1913. “The second sure foundation for future prosperity is the greater efficiency and economy shown by our people. In this respect the dairy farmer has given the rest of New Zealand a magnificent lead. By improved herd selection, more extensive use of manures and more scientific cultivation he has increased the quantity of his production. Even if the price of his products owing to a world-wide fall in prices should drop during the next five years as much as 25 per cent., there is no reason why he 'should not increase the quantities of butter and cheese produced from the same number of cows 50 per cent. This would mean a nett gain of 25 per cent, on his returns. In addition he will have to the good, the advantage of the increased number of oows he will be

able to maintain upon the same acreage of land. ‘ 1 J ; “No class or. individual can prosper without sharing its or his prosperity with 'the whole community. The bene l fit to. the whole Dominion through the increased output of the dairy farmers will be universal.” '