WORLD IN THE SLUMP

Manawatu Standard, Volume LIII, Issue 62, 9 February 1933, Page 2

WORLD IN THE SLUMP

MR J. M. A. ILOTT LIKENS IT TO A BLIZZARD. AMERICA IS HARD HIT. “When I left Wellington all the world seemed to be clouded over, but by the time I reached the United States I was conscious that I had run into a blizzard travelling at the rate of -200 miles an hour,” said Mr J. M. A. Ilott, who has just returned from a world tour, when addressing the Rotary Club at Wellington on Tuesday. “In England it seemed to have calmed down considerably; but I found it blow’ing vigorously on the Continent. Coming back to New Zealand I find that it is going at the rate of from five to six hundred miles an hour.”

When Mr Ilott visited the United States in 1928 ho found it n cheerful optimistic country which had discovered the key to economic success. That W'as based on mass production, high wages, and the fostering of a great foreign trade. When lie was there a few months ago all the optimism had disappeared, nnd at the end of May and the first half of June he encountered the suicide period, following a ghastly time, when all values disappeared almost in a night. It was a torn, hopeless, distracted America that was facing this crisis, one which many were facing bravely. What was worse than the loss of value was the loss of faith and the philosophy of life which they had built up during the good years. FUTURE FOR AMERICA. Yet America, said Mr Ilott, would create new ideals and was assured of a great future. She had 6 per cent, of the world’s population, and it consumed 93 per cent, of what it produced. All together some 400 banks had closed their doors in the slump. Twenty-three banks in Chicago closed down in 23 days, hut that must not be taken in the sense of their being parallel to New Zealand banks. These were private banks, with no branches. Out of six banks in Toledo five had failed. An indication of the way in which values receded could be gnined from the index of stock prices. Stocks quoted at 184 dollars in 1930 receded to 124 dollars in 1931, and by May. 1932, had dropped to 42 dollars. The unemployment figures when Mr Ilott was in the States ranged from 12 to 15 millions, or 34 per cent, of the male population. LONDON THE GAYEST CITY. “London to-day is the gayest city in the world,” said Mr Ilott. “It is quietly and steadily going oil as if there were no depression. My American friend said to me that ho had experienced nothing so refreshing as London —and the English character is one of the greatest assets we possess. 1 was there when Mr Downie Stewart was in London, and so great an impression did lie make with people who count that they were hoping that lie would be sent back for the international financial conference. Sir Thomas Wilford, too, has made a name for himself as High Commissioner, and deserves all credit for the job he has done so well for New Zealand.”

“Paris is a morgue, Berlin a mausoleum,” continued Mr Ilott. “But if a stranger were to drop into London he would not know there was anything wrong with the world. Of course the state of unemployment in the Midlands was ghastly, and it was terrible to visit the Clyde and see no ships on the stocks; but still in the opinion of some of the biggest men at Home England would recover before any other nation, and would be greater’ in the future than she has ever been in the past.” HITLER’S OBJECTIVE.

Mr Ilott said that in 1929 Germany imported 130,000 tons of butter from Denmark, but last year she had only imported 50,000 tons from that country. From what he could gather the policy of Hitler seemed to be one of Germany for the Germans, and his main political objective was to get Germany free from the thraldom of interest. In Denmark 30 per cent, of the population was unemployeod, and Czeclio-Slovakia. was also feeling the pinch of unemployment, though bellow cost of living enabled her to hold out better. In Austria things were so bad that the first thing one was told was not to mention the depression. In Belgium one saw the boats tied up everywhere, and the roads were the worst in the world. In France it was considered quite the thing to beat the income tax if one was able to do so. For that reason one found many Frenchmen who insisted upon paying cash for everythin?, even in big transactions; and as they kept no books and u-ave no cheques their financial affairs were difficult to trace by the tax collectors. OPTIMISTIC AUSTRALIA. Spain had not escaped the world depression. In that country the shops were closed between noon and 4 p.m. Not even Communism could prevent unemployment. Italy had its unemployment problem, but had not-sin-tered .quite so much as other nations as wages were low, and the cost of living was not high. “Australia to-day is the most optimistic country in the world, said Mr Ilott. “A little while ago a friend said to me, ‘You New Zealanders were telling us that everything was upside down with us. and now you, who haven’t had a Lang to alter things overnight, are talking as though the end of the world has come. It non looks as though public confidence is returning and the downward movement arrested. Internal adjustments have gone far toward restoring a position upon which business. may resume its earlier activities and so provide work for the unemployed “Everyone looks to England foi a lead ” said Mr Ilott. “Communism is declining, contrary to all expectations Hardship has led people to see that the way of salvation lies m moderation not in extremes. If war debts were cancelled and tariffs reduced business could he resumed between England and the Continent.^