The Guardian (And Evening Star, with which is incorporated the West Coast Times.) MONDAY, MAY 3, 1937. ECONOMIC CHANGES.

Hokitika Guardian, 3 May 1937, Page 4

The Guardian (And Evening Star, with which is incorporated the West Coast Times.) MONDAY, MAY 3, 1937. ECONOMIC CHANGES.

The Great War and its aftermath, leading up to the period of depression ending in 1935, in relation to economic changes, has been the subject of a paper from the Canterbury College analysing the general position.' The subject is opened up with the following basic statement: "Recent years have witnessed marked changes in New Zealand’s economic organisation, This

organisation means in effect the arrangements made for the national housekeeping of the Dominion. For, just as a household must employ its resources, spend its income and regulate its affairs in such manner as will achieve the greatest measure of welfare obtainable for the family group, so a nation must organise its own affairs in such a way as will achieve the maximum welfare for its people. Within the limits set by custom, law, and institutions, which are themselves established as the result of experience accumulated in the past, such an organisation, if kept free and flexible, normally develops to meet the needs of the people it serves. In this way New Zealand’s economic system has grown in the past, changing somewhat with changing times and needs, adjusting itself to developments botli at home and abroad, and striving towards, though seldom if ever reaching, its goal of maximum welfare ior the people.’’ l It- is pointed out further that major changes in the organ-

isation usually evolve slowly, though important developments may be induced by emergency conditions. Then expedients intended to be temporary are tried and often become permanent. Such was the outcome of the war peiiod when to meet increased expenditure, increased taxation was imposed, and other expedients adopted to find necessary funds. Followed the price nuctuations which affected the farmers so seriously, and a problem •had to be grappled with. To assist recovery there was the public works expenditure, also requiring more funds to be raised. When the wave of depres-

sion came this way, the fall in the value of exports was most serious, and borrowing abroad became impossible. The net result was the reduction of about one-third in the income and spending power of the community. Budget deficits resulted over a period of years, while all the time strenuous efforts were made to grapple with trie position. Important changes . followed in the sphere of money and banking. The exchange rate was lifted as a temporary measure, but now found difficult to reduce, though there is a serious depreciation in the sterling value of the New Zealand pound. In the banking business the Reserve Bank was brought into existence and centralised monetary issues and monetary methods. The general abandohment of gold standards and wide devalution of currencies were; all changes of importance in connection with trading. International trading was governed by nationalist feeling which had arisen, while the stoppage of migration has reduced the growth of population. Many internal changes were attempted or carried through in relation to income, by the loan conversions and interest reductions, as well as general mortgage adjustments, together with increased social services and adding to the unproductive State debt. The period was one of considerable trial, and in the circumstances New Zealand emerged with less dislocation than most countries where the effects were more serious and general to the people. The period since 1935 is an interesting one from various points of interest, and that is to be revived in a later bulletin._As matters arc shaping the events and consequences economically guaged from the students point of view, should certainly be of value. -|H -*'*“•■* ’ There is still a rather helpless feeling of fatalism about the recurrence of boom and slump,” said Sir Josiah Stamp, speaking on ‘‘Loans and Taxes for Booms and Slumps,” at a luncheon in Leicester. Elaborate analysis had indicated, he said, that the sequence of boom and slump in extreme fluctuations was due partly to delays or defects in the monetary mechanism and partly to collective psychology, errors of judgment, too much aggregate pessimism or optimism. In an individual capitalistic system this was about fifty-fifty. The turning point between boom and slump was marked by overconfident production for the market, by the failure of individuals to realise the aggregate supply at a certain stage in relation to demand. Some laid great stress on variations in the rate of interest, particularly as affecting stocks held on borrowed money; others stressed the quantity of credit available. Others, again, thought the “compensating factor” could be the programme of works- by public bodies, to be put to a maximum when ordinary business was at a low point. But public works expenditure had no precise value unless the proportion borne between taxes and loans were also determined and adjusted. For the Government to absorb by direct taxation what otherwise would go into excess saving, and to expend it freeiy, was a corrective at one point. But taking in the form of taxes what ordinarily would be spent by the taxpayer was redistributing purchasing power and not adding to it.

Messrs W. Jeffries and Co. will sell at Keller’s Sample rooms on Friday next a quantity of furniture.

Tennent’s advise that their Registered Optician will he in attendance at their Hokitika branch, on Thursday next, May 6, when he may be consulted on all eyesight troubles.'—Advt.

The Hokitika arrived in the roadstead about noon yesterday from Greymouth and Wellington, blit was unable to cross the bar, owing to a Hood in the river. This morning there is a heavy sea running.

The ordinary monthly meeting ol the Hokitika branch of the New Zealand Labour Party will be held in the Town Hall on Tuesday evening at 8 o’clock. All members are requested to attend.— Advt.

Chilly nights hold no terrors for the users of Addison’s blankets. All tne leading New Zealand makes stocked, in cream all-wool blankets, full weight and sizes. Coloured stripes iti pastel shades. A noteworthy selection at Hokitika’s keenest prices. Addisons for value in blankets. —Advt.

Freight carried on the Westland air service by Air Travel (N.Z.), Ltd., during April showed a considerable increase on the previous month, indicating a steady expansion of the use ol aeroplanes for transport on the West Coast. The freight carried in Ap.il was 24581 b, compared with 1189. b in March.

The Hokitika Badminton Club will hold its annual meeting in St. Andrew’s Hall, at 8 o’clock to-morrow evening. Full attendance of members and intending members cordially invited. Advt.

Unpleasant and rather boisterous weather coniditions prevailed for the most part over the week-end, a keen wind and heavy intermittent showers keeping most people indoors. This morning, at first heralded by heavy showers, cleared as the time went on with the sun endeavouring to improve the day.

The West Coast Farmers’ party to tour the North Island for the next fortnight left this morning, over twenty from this district leaving by train for Greymouth, where the remainder of the party wer e to join up. The party will travel to Wellington, Taranaki and Auckland and then back via Hamilton where the A. and P. Show will be a feature.

An electric shock was suffered by Murray Sloane, aged 12 years, of Mainaranui, on. Wednesday last, when he pickeu up an oHctrie-light socket which was aliv e. He was witnessing a performance in a show teiit in Poto Street, when the power failed, and the lighting wires were lowered to the ground to enable the fault to be located. The lad was treated by Dr. M. Grenville, and later he went to the home of Mrs E. Saunders, with whom he is staying.

When driving his car on Saturday night about 9 o’clock at the east end of Hampden Street. Mr G. C. Wes: of Hokitika, struck the racehorse Gay Colleen, which came across the road in front of him. The car an old Dodge, struck the horse on the hind quarters, and inflicted serious injuries, the horse dying shortly after-wards. The ca" which received the impact almost full in front was considerably damaged the radiator and mudguards being broken The horse was being trained'by Mr W Holley, in front of whose residon e t accident occurred, and was leased bv Mr <T. Duncan. It had run at the lapt West Coast race meetings. The Hokitika Musical Society will open its 1937 season, next Monday, May 10, when the programme will be. in the hands of the President, Mr A. Th Perry, members and intending members ai’o iuvited to meet at the Methodist Hall at, 8 p.m. 'Phis year the Society has amended its-programme. The season wdl consist of four local evenings, one of which wTil be of instrumental items, by West “'bast artists, then there will be two moro professional recitals by N.Z. artists, and the season will close with the production of a complete opera in full costume. The Society solicits the support of all music lovers in the community to make this season a complete success. Schroder and Co. are again to the fore with the latest in ready to wear and model hats for the coming season, which promities to be the finest selection in Hokitika. — t.