The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JANUARY 31, 1927. THE OUTLOOK.

Hokitika Guardian, 31 January 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JANUARY 31, 1927. THE OUTLOOK.

The general outlook for business in New Zealand is not regarded very favourably in many quarters where there is an intimate knowledge of the general financial conditions. This is not surprising for the country as a whole is still racing along as of yore when commodities were bringing boom prices. The fall in the value of exports, while imports show no material drop, must be conducive to a financial stringency. At the same time, it is apparent with the general air of prosperity prevalent in the Dominion, that the real pinch is as yet some way off. Still, unemployment is growing. It is unusual to hear of large numbers of men out of work at this period of the year when harvesting is so general all over New Zealand. But it is an unfortunate fact that there are hosts of unemployed about the larger centres, with no immediate prospect of steady labour. The fall in the value of exports'is the immediate cause of this, and lessens the cash in general circulation. The drop also causes caution on the part of the producers who are unable to employ extra labor for the time being. Keen in the harvesting there is a marked restriction of labour, farmers in many instances continuing to help each other, and with the use of machinery, hav-

ing less cash to pa.v out for manual lahour. This stringency in turn is having its effect oil business in many of 1 the chief centres. Tu places where high rents prevail, simp-keepers are meeting difficult times. The general trend of events points to the necessity for all round caution and thrift.' The late flood damage all over the country lias been the first call on. funds availaide with the result that- there has been a marked contraction in public expenditure, unless where Hoods were responsible for undue ravages. The lingo expenditure which has been going on over two-thirds of the country in the matter of electric development and reticulation, is now diminishing. Works are being brought to a utility point, and the hands employed are being decreased. This aspect will lie accentuated as the months go by. The Prime Minister, when he returns in a couple of weeks or so will have to face some serious internal problems. The matter of employment is very urgent, all over tho country, and is growing more pressing monthly witli the hundreds of people coming into the country. There is a call for statesmanship to meet the position, not with temporary palliatives, hut with remedial policy measures likely to assure the position for some time to come. Mr Coates’ chief difficulty will -lie finance, hut we may expect lie will lie on the London money market at tho first favorable opportunity. If that money could lie used in developing a forward land settlement policy, there would he some hope of the situation retrieving itself with some celerity. There is a way out, and there is the rail for optimism and not pessimism. Mr Coates has all the airs and graces of an optimist, and here is bis greatest clianee. of all to justify bis choice and selection as tho Prime Minister of this great unsettled Dominion.