DEPRESSION IN TRADE

Hawera Star, Volume L, 23 October 1930, Page 5

DEPRESSION IN TRADE

DOMINION’S PROBLEM MINISTER’S OPTIMISM (By Telegraph—Press Association.) ' THE HERMITAGE, Oct. 22. The annual conference of the Associated Chambers of Commerce of New Zealand opened at the Hermitage, Mount Cook, to-day. Thirty-two delegates were presort, representing 27 chambers. The conference was presided over by Mr C. P. Agar (Christchurch) . Official! vi opening tire conference, Hon. P. A. do la Perrelle (Minister of Internal Affairs) apologised for the absence of the Acting-Prime Minister, (Hon. E. A. Ransom) and assured the conference that the Government would give very careful attention, to remits which concerned the Government. He assured the conference that it was the earnest desire of the Government to co-operate with chambers of commerce and other organisations in, any measures calculated! to advance the prosperity of the country in any way. He was 1 sure that the delegates agreed that, unsatisfactory as the position might bo in some respects, the return® of the six trading banks in New Zealand, for the months of July, August, and September showed that the financial position, was sound and satisfactory-, when taking into account the present world-wide depression and the decline in prices of ithe principal exports. The position, so far ns> the banking returns were an index, was not one that called for alarm. As the delegates were aware, the Government had met its own position by a drastic curtailment. of expenditure, and by the imposition of additional taxation. The revenue fell £500,000 in the first half of the present financial, year, but they had reduced expenditure by £600,000 for the same period as compared with the previous year. A certain amount of re,venue had to be found l each year, and, as taxation in the long run was borne by local production, it followed that if the proportionate effect on industry could only be ameliorated: by increased production ithe amount required in taxation was then spread ever :n greater volume of production and tho effects on the individual were less marked.

The question arose how increased production.- could be brought about? One means of achieving this was by directing 'consumption towards goods which New Zealand produced.

Touching on 'the desirability or otherwise of giving preference to New Zealand goods, the Minister said he felt that New Zealand was under no particular obligation to foreign countries, especially 'where those countries did not provide good markets for Naw Zealand produce. The time might not be far distant when there would require to be greater trade reciprocity between countries comprising the British Commonwealth and greater unity of action! on the part of thiat Commonwealth as a whole in its competition with other producing countries. The Minister said he was aware that chambers of commerce were somewhat concerned in regard to the Board of Trade Act. The point of view iof the chambers was appreciated by the Government, and it intended fully to consider the question before next session’s legislative programme was arranged. Ho would be pleased to give earnest attention, in collaboration' with the Prime iMimiste.r and Sir Thomas Sid-cy, to the request that certain provisions •of the Adt be repealed and others modified.

•Mr Agar delivered a lengthy presidential address, in the course of which he said he believed it was maldistribution of gold, together with inflation of the currency in some countries, that ■created the position. The problem was

an international one and could be solved only by a conference l iof those countries whose currency was based on the gold standard.

Mr Agar dealt in detail with the position of farmers and went on to refer to the secondary and primary industries, •stating that tariffs ami protections must be considered from the point of view of the ability of the community as a whole lo bear them rather than from the more popular viewpoint that the Dominion would like its own secondary industries.

The speaker went on to refer to capital. and' labour, and concluded by stating that it was mot to political action that they must look for the future, but to the efforts of individuals.