ODDS AND ENDS

Huntly Press and District Gazette, Volume XIX, 29 March 1932, Page 3

ODDS AND ENDS

FROM THE “FINANCIAL TIMES” The following extract from the Obiter Dicta column is of interest. Ruining our Credit. Cranks, myopic business men, mort-gaged-up-to-the-neck farmers, and the Government appear to be conspiring to ruin the credit of New Zealand, which is scanty enough at present, and yet each one believes that what is being advocated is in the “best interests of the country.” A high exT.ange rate and a compulsory reduction of interests on Government Stocks and Bonds will about set the seal on New Zealand’s credit. This is exactly what the Commomvealth has done, and who in his sober senses will venture to say that Australia will be able to borrow in either the London or New r York money markets, except at usurious rates of interest, within the next five or seven years. If w T e do exactly as Australia has done, the result must be the same here as in the Commonwealth. We will be obliged to finance all our enterprises out of our ow'n resources; hat is, w’e must find the capital for our ventures. Where is the capital ? Capital is accumulated from savings. \nd the people of New Zealand are lot saving, because they have nothing to save. Trade with China. In the following paragraph Mr Alxander S. Ttezner summaries the onclusions reached in an article on our developing trade with China. To sum up—China offers the greatst and richest free market in the world to-day for goods produced in New Zealand. The United States, Japan, Germany, Canada, and France ire handicapped by the gold standard n relation to silver. Since Great Britain has gone off the gold standard, our two countries enjoy an advantage in price of 30 to 40 per cent. The distance to China is only 6,000 nautical miles as against 12,110 nautical miles to Great Britain. The population to be served is ten times greater than that of Britain. It is imperative that New Zealand should should find new’ markets for her produce if her income and the solvency of her people is to be maintained and he Far East offers at the present moment, the most favourable and enticing possibilities ever presented to .his Dominion. Lower Standard of Living The following is an extract from an article by Professor Copland. There has already been a drop of £4O millions, or more than 25 per cent. Wages have fallen about 10 per cent, but since the cost of living has fallen by a little more, there has been no decline in real wages for men in work. Many men are out of work and have .o depend upon sustenance or relief works. Hence wage-earners as a whole have incurred a loss of real income, but the loss has been unevenly spread over the whole group. If the ! oss of national income had been light and temporary it might have been possible for surplus elements of income, such as profits and interest, o bear it. But a loss of £4O millions, with a prospect of an increase to £6O millions, cannot be borne in that w r ay. Surplus elements of income are not sufficient to bear more than a small fraction of the total. It must therefore be spread over the community. Naturally, it is spread at present, but very unevenly spread. The bulk of it has fallen on farmers, the unemployed and the recipients of profits. When the loss is spread more evenly each position to consume its former quangroup in the community w’ill be in a bities of internally produced goods and services, but at lower prices. This : .s the first problem of readjustment.