SINCE THE SLUMP.

Northern Advocate, 15 June 1923, Page 6

SINCE THE SLUMP.

DOMINION'S QUICK RECOVERY. STEADY PROGRESS PROBABLE. Speaking to the unnual meeting of shareholders in tne Bank of New Zealand at Wellington to-day, Sir George Elliot, chairman of directors, discussed conditions in the Dominion and the outlook. "Since our last annual meeting," ho wiid, '' there has been a marked improvement in financial conditions in the Dominion, brought about especially by a greater demand for wool, with a consequent advance in prices, and by a largely increased output of milk products. The imports into New Zealand during the year show an increase over the figures for .1921-22, but the exports show : a still larger increase of £1,746,374, so that, on the whole, the balance of external trade is in favour of New Zealand to the amount of £8,573,117.

The substantial surplus of £1,315,683 in the Dominion's revenue over expenditure is also a matter for congratulation. Notwithstanding this, the people of the country should not be misled into supposing that the necessity for a maximum of economy in both public and private expenditure has passed away. The recovery from the severe depression of two years ago has been too rapid to be altogether wholesome, audit would be unfortunate if the lessons of that period were too quickly forgotten. Notwithstanding the optimistic reports which have recently been published, and the splendid increase in the value of wool, conditions all the world over are far too unsettled to warrant the assumption that the present price of commodities will be maintained.

"The number of bankruptcies during last year has been larger than usual, and the published figures by no means represent all who have failed. Numbers of farmers —many of them returned soldiers deserving the best of fortune—have been obliged to surrender their holdings, thus losing all their hard won savings. In other cases, vendors have canccllod a proportion of the purchase money to induce purchasers

to carry on. "Most branches of wholesale trade are now on the high road to recovery from the over-importations of 19201921, and are giving promise of steady progress. It is a tribute to the sound financial standing of the community as a whole that such an exceedingly large proportion of our traders have successfully emerged from so severe a crisis. Hea\y losses have been made, but, for the most part, they have been faced •with a surprising equanimity and with a determination to ffrofit by the lesson. The financial storm passed lightly over the retail traders.

"In these uncertain times, it is difficult to say what the future has in store for our Dominion, since we rely for our prosperity on the prices our primary products realise abroad. We are thus dependent on conditions entirely outside our own control. The

purchasing power of our principal customer—Great Britain —means good or bad times for this Dominion, and tho purchasing power of Great Britain again depends upon conditions which prevail in other countries. One can scarcely think that the present exceedingly strained relations between France and Germany can long continue. Nor should the recovery of Russia be a matter of more than a few vears. With Germany settled down to a grim determination to retrieve its position, and Russia resolved to conduct its life on common-sense lines, resolved also to develop its immense resources, new economic problems will arise, the result of which it is impossible to forecast. Prudence dictates that the people of this Dominion should so conduct their affairs that they shall always be 'equal to either fortune. ' "I have not hesitated to indicate some defects which exist amongst us, and which are dangerous to the vrcV,being of many of the people of this country, but, on the other hand. T must point out that the vast majority of our settlers are in a thoroughly sound position. We arc in a most favourable position to form an a ecu rat" estimate of the actual financial condition of the country, for nearly 50 per cent, of the banking business of the Dominion is transacted by our bank. The information thus obtained, the knowledge which we possess as to the spirit in which the great majority of our people havo met the difficulties of the past two or three years, lead me to look forward with confidence to the future of the Dominion and to expect that the years to come will witness steady progress. New Zealand is a land peculiarly fortunate. It is a young country, but its very youth should be its chief assot. Every day it is making its own history, and its own traditions; if it remembers the value of cooperation between the classes, that history should make pleasant reading in the future."