The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JUNE, 4, 1930. REASONABLE ECONOMY.

Hokitika Guardian, 4 June 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JUNE, 4, 1930. REASONABLE ECONOMY.

i'oi.i.nu i.\<; l In' impm'laiu sialciat'iil by I lie I'rimu .MinisliT lasi weak ri'ga nliny, t In' liiiam ial mil bulk I'm' l-hc |UVM‘iil \ia r. a! I In- cti; rmi! ia I a m <• x) m■ 111 1 il;:rr. a drairi' nl ccmimay will Ini i'S-

-.enlial, 11 will rci|ij.re to be praclical and iii'il lliciuvii.nl ecoiiomv tlio hitler on paper only, The ivsußs will require to he aeliieved to retrieve the general position. Retreii hmeiit is allot her name for the overlmtiling of Ihe lion ucc. lad that course is iml as :n----cent a hie 111 I lie public muni. Air Fortes will icipiire to .el afoul I'ca-

r.ijHsi i>! < • (viiimiiiy, i! i; i l ;s, no niiisl so oril:-r :\ !vvi*>ioh <ii i!i«* ! io-oiii ini ii lift* liy producing resiill s u liioli will go a loii|i; way lowan’s liala iici 1114 (In- 1 m 11 1 ; 4«* 1 . Till- leal slioill'i not 1 10 beyond airoin pi isli 111011 i., For Iho rounIrv is sir.iiu!. al In-arl and producing well. and capable of grealer product ion. World-affairs financially arc generally

deprossed. that wave of depression 1

now reached our .-Jinus; I.uL ii.-, lorce will j ass. !;r New Zealand had - i'ecupciaiiu' ;a1 wc s wu’isii will respond

leadily. and under a per.oil id sound

aid : a e admini uiratmii such as Air r or'a f, re, '.l Is. ail v. ;ii yet he well. The general eiomniic cundi: ion ol the ,01,11.1... and Ihe ■.. ■, I policy for it to

puisne it; the light of wmjd events, wa

;wiewed !.y li.c Deparia.t 111 of Industries am! (.ciiiiiiei •:■;>. in i s reierence to

.111:1 tc e. trade and industries id’ the Dominion for the .March ijiuirtcr of the current year. 4 lie need for "reasonable economy” was urged therein. Due fact stands out clearly in the department’s bullet in—tha l almost without exception llie prices ol New Zealand's principal pr.mary products have been steadily dm lining for s :me time, ami this has seriously reacted on the incomes of tile producers and on the (inaucial an ! e otioiiri:■ condition of the Dominion. The trade balance and the banking figures are not as favourable as they weie twelve mouths ago. but that is not entirely due to the reduction in the total value of the exports. It is due, in a measure to the greatly increased importations which occurred during 1929. Yet while these two factors have seriously a Fee ted the position, the position itself D not serious, un the eontrarv, the bulletin states, the trade and hanliing figures are hotter than was anticipated, and. taking ever v't h i iig into -run ■idera tioit. they are satisfactory. Production, in many lines--for instan 0. dairy produce, frozen meat and fruit—'s steadily incroiring. and new records in productivity and i:: quantities exoorted are he’ng noi 'e overv year. While that is so, the department considers there can he little cause for alarm if' prices fall no lowei than they are at present, for He increases: in the quantities of prosold, must, to some extent at any

I'a I ',, miit-e id for the lower prices rereived. The remedy, indeed, seems to i.c in the direction of ‘'coining a greater result from the e.vneud lure of each uni: of capita! and iabour: in other words, from a steadily increasing pro i. bv both !:y mo"e intensive and extensive means. A gang the hanks, by. raising the bank rale, and by the restriction of credit facilities, have taken stems to reduce impnrlatioiis, and this must autumn!’cully follow, too. from the reduction in the purchasing power of the community, due to the reduced value of exports. If it were not for the rather complicated situation in Australia, and the effects that has on the policy of the hanks in New Zealand, the position .here would lie .-.till more satisfactory. The outlook as regards prices for next season is impossible to foresee, hut there are indications that the low level of prices in oveiseas markets is stimulating consumption in many lines, and with increased demand, it is only reasonable to expect a cessation of the downward movement even if not an upward turn in prices. The prices of some primary products, too, principally wool, are so low in relation to- the prices of certain manufactured goods that sooner or later, with the restoration of confidence in industrial conditions in overseas eouutr.es, there must come a stimulation of demand and consumption. With regard to manufacturing industries, more satisfactory features have been observed. AYitli the wider interest which is being taken by New Zealanders in local industries, with a deeper appreciation of the claims and the merits of the products of those industries. with a more generous measure of support given to them by the buying public, and finally, by the continued application on the part of the manuacturers themselves of more 'scientific methods of productionii it is hoped that irogress, necessarily slow, hut never•l: el ess sure, will he exhibited in regard to a still greater number of the secondary industries when the returns of production for the year ended A larch 31s1. 1939 are published. The bulletin concludes: “Finally, it must he said that, while there does not seem to he j, ileation for the pessimistic outlook held in some quarters, there is undoubtedly need for reasonable economy while the prices of the majority of our principal primary exports arc on I lie comparatively low level which they have been experiencing for some time oast, and until such time as our trade balance is restored to a more, favourable position.” All tins is very hopeful and gives the impress that a policy along such lir.es will succeed satisfactorily. The Prime Alinistor is to lie complimented for placing the position of the country so prominently before ,-ae; people. He should enlist their support and sympathy in a practical way, and so pave the wav for the accomplishment of a year of sound finance for New Zealand without the four or reproach of any break down or any serious dislocation of the public credit. To l>e forewarned is lo he forearmed, and Air Forbes is so equipped for his initial year at the head of the public udmini.si rat ion.