“TURN IN THE TIDE”

Hawke's Bay Tribune, Volume XXIII, Issue 80, 16 March 1933, Page 8

“TURN IN THE TIDE”

POSITION IN ENGLAND. INDUSTRY IMPROVING. Wellington, March 16. “I think one can say quite definitely that there is a turn in the tide.’’ said Mr Joseph Salmon, a director of Lyons and Co.. Ltd., London, who arrived from Home by the Rangitane yesterday when asked for his views on the economic situation in Great Britain. “There is certainly more confidence at Home. People are showing more courage in business. The industries which were hit very hard, such as wool, cotton, and steel, have certainly improved since the tariffs.” Questioned as to the reaction at Home to the increase in the exchange rate. New Zealand on London, Mr Salmon produced a clipping from “The Times,” in which the following editorial comment was made:— The new- rate is an artificial one in that New Zealand is not at present faced with an adverse balance of overseas payments, and the reluctance of most of the banks to see the exchange raised lies mainly in the fear that the impetus thus to be given exports and the discouragement to imports may result in an excess of London balances which ultimately can only be reconverted into New Zealand currency at a heavy loss. Hence the undertaking given by the Government to indemnify the banks against any consequent loss. The movement is, of course, made entirely in the interests of the primary producer in New Zealand, whose plight is admittedly serious. It will confer material benefit on producers, though at the expense of other interests in the community ; for the cost of living will probably rise. . . . NEW ZEALAND BUTTER. Referring to New Zealand butter, Mr Salmon said that he was quite certain other butters were being sold at Home as the New Zealand product. He strongly criticised the practice m some quarters of putting Dominion butter on the market as Empire butter, and said that the only way to hold the public demand was to work to a definite brand showing New Zealand as the country of origin. Only one quality, the best, should be exported. On no account should inferior qualities be sent Home, otherwise the high reputation which New Zealand had built up in the past would be lost completely. Quality for quality, the best New Zealand butter was better than the Danish product, continued Mr Salmon, but the Danes had the great advantage of being so much closer to the market. There was no doubt that fresh butter appealed to the consumer even if it cost a little more. Mr Salmon was greatly interested m details of the New Zealand loan conversion, but he uttered a warning note against any action by the Government that might prejudice the Dominion with the outside world from an investment point of view. Any such move, lie suggested, would have a most serious and far-reaching effect on prospective investors.

During his stav of about a month in New Zealand. Mr Salmon, who is accompanied by Ins wife, formerly Miss Rue Mandel, of Wellington, and their son, hopes to do some trout fishing.