Manawatu Evening Standard. FRIDAY, JAN, 18, 1935. THE REVIVAL.

Manawatu Standard, Volume LV, Issue 43, 18 January 1935, Page 6

Manawatu Evening Standard. FRIDAY, JAN, 18, 1935. THE REVIVAL.

At certain periods of the year there are issued items outstanding- among statistical data which give point to general statements as to the betterment or otherwise of economic conditions and world trade. These help to fix in the mind of the observer numerous facts which otherwise would perhaps be put down to mere optimism. Of recent weeks there have been featured in the cabled news from overseas some very salient facts which, taken collectively, must create an extremely favourable impression. British railways show increasing traffic which has enabled them to make a splendid s'tep back to the basis of payingdividends when, before, they were chiefly anxious about conserving the resources they had. Railway traffic, particularly goods freights, is always a good trade barometer, and when it is realised that the improvement in Home railway figures arises principally from the latter source, there is room for increased gratification. On January 8 the last of the big British banks announced their results for the year and these reveal that all the ‘‘Big Five,” as they are popularly termed, had increased earnings for 1934, and the dividends are in every case maintained. Eighteen, 16 and 15 per cent, were the rates of dividend paid respectively by three of the banks, and even allowing for the fact that these figures by no means are actual on a par basis—possibly an analysis would show that with the reserves employed in addition to ordinary capital to earn such profits the rate is only about 3 or 4 per cent —the point remains that dividends have been maintained on a market which lias never before witnessed cheaper money. Again, public works schemes in Britain —and in some other countries, too—are being favourably regarded as sound economic ventures whereas earlier they were looked at askance because they were indicated simply as measures for the relief of the workless. They have been brought within the scope of sound policy because of cheap money. Conditions for a general recovery in trade and industry, speaking generally, were never more favourable. Politicians realise that out of the prolonged depression there are arising valuable lessons. One of these is the fact that many of the schemes grasped at through inexperience as palliatives for unemployment are but in themselves a burden on industry which, if encouraged in the proper way—given breathing space and a lightening of the load of taxation and interest costs —will in time absorb those who are without work. In time, it should be noted. There may be a long road to traverse ere anything approaching general prosperity throughout the world is reached, but it is most gratifying to note the almost vibrant tone that has permeated the industrial world over the last few weeks. Borrowing- money at high rates for the relief of unemployment has proved to be utter folly; it has intensified the problem. Months, even years, ago shrewd observers were pointing out that the country that first realised its duty to industry by giving it a chance to adjust itself to the changed conditions instead of loading it with extra taxation would be the first to emerge from the depression. That to an appreciable degree is being proven. In our own Dominion there is a gratifying falling- off in the numbers of unemployed and there are signs of a revival in industrv and trade. There remain to be faced numerous serious problems affecting the staple industries of the country, but it must surely be recognised that more freedom and a lightening of the taxation burden would facilitate the movement that has begun for the bet-

ter in other quarters. Britain is to-day enjoying the leadership in a better industrial movement because of the advantages of cheap money accruing to her and the fact that the Government, exasperated by the failure of colossal relief schemes, is prepared to step aside and allow private enterprise room to build permanently for the industrial future where the State itself merely built and knocked down again, and then repeated the process to no end. There is a distinct note of industrial revival at the heart of the Empire, and its repercussions will undoubtedly reach out to the furthermost corners of it.