NORTHERN ADVOCATE DAILY FRIDAY. JUNE 15, 1934. THE DOMINION SITUATION

Northern Advocate, 15 June 1934, Page 4

NORTHERN ADVOCATE DAILY

FRIDAY. JUNE 15, 1934. THE DOMINION SITUATION

Registered for transmission through the post as a Newspaper.

The .addresses which Sir Harold .Beauchamp, as chairman of directors of the Bank of Now Zealand, has delivered at the annual meetings of shareholders, j when moving the adoption of the report and balance-sheet, have invariably contained observations upon world affairs ealen-j lated to assist the general public to form an estimate of coming events. This year’s address, the salient features of which 'are printed in this paper, is marked by a note of optimism regarding the ■emergence" of the Dominion from the'depression under which it, in common with the world at large, lias been struggling for the past four years. The chair- ; man of directors was guarded in his statements, hut he evidently considered himself justified in saying that “while lack of confidence and . a feeling of uncertainty still largely prevail, signs of a" gradual movement towards recovery are not wanting.” This movement is admittedly attributable to Great Britain, “which shows all the indications of a ! steady natural recovery.”' “Britain.” it was slated very subtly by the chairman of: directors of the bank, “has attained this by a close adherence to well-tried traditional methods. The rej markable feature of her recovery is that she has not relied upon professors of economy of any I school, or so-called ‘Brain Trusts,’ j hut has rolled upon business | methods, business ethics and business commonsense./’ It is only j-jo hi* expected that the superiority of traditional methods should, be emphasised by Sir Harold B-eauchamp and that be should castigate those who, “without any qualification for the role, have become ardent monetary reformers.” “A lack of knowledge or ordinary business and banking principles,” lie said, “does not deter these people, and unfortunately their disabilities in this respect are often .accompanied by complete assurance in Hie efficacy of their plans to restore national prosperity.” Advocates of monetary reform doubtless will have something to say about this, but Sir Harold Beauchamp will feel that the position he has taken up is fortified by Britain’s record of achievement. However, there can be no dispute with the contention that New Zealand should consider well her present position and, using her experience during the depression as a foundation, plan wisely. for the future. This is particularly the case in respect of the primary industries, upon which the Dominion must roly so largely for its prosperity. Sir Harold Beauchamp discusses the quota question from the point of view of eommonsense, and there will bo none to dispute bis contention that if restriction of output should take place, the industry must try. by improving the quality of its product, to make good the deficiency in revenue. Quality, first and last, must he the motto of the primary industries, whether the market lie restricted or open. Hand in hand with this must go steady effort to facilitate trade rccinrocity. which, in the opinion of Sir Harold Beauchamp, has boon hindered by the Government’s action in fixing a high rate of exchange. It is of more than passing interest to note a reference to this matter; “It has been authoritatively stated that the adoption of high exchange rates by Australia and New Zealand had no hearing on Britain’s_ decision to impose (pintas, but il is difficult to understand that the imposition of what was virtually a subs I r.ntial additional lari It on British goods passed unnoticed, ll is a generally accepted principle | Hint one can rarely have it both I ways.” There is more in this j observation than meets the eye. | So far as Hie future of the Dominion is concerned, it is clear that when confidence is restored there will be substantial development. Bor the March quarter, the total deposits in the banks were over 01 millions sterling. Of this amount £'21 ; G57,550 rep-

rosontUcl iVoo deposits and £■Ji,.; 4f)r.,588 fixed deposits. This is j eloquent evidence that possessors of capital arc awaiting a favourable mom cut for its investment. That moment will come with the j restoration of confidence, which] will he conditioned by the re-| turn of prosperity to Britain. That prosperity is returning. Why? Sir Harold Beauchamp has'used notable when lie answers the question in the following words: “Men of experience know that in all human affairs no slump or boom, no rise or fall, neither depression nor prosperity, can be continuous and without stay, depression follows prosperity, and depression is followed by prosperity, or neither would exist, and the descriptive terms, therefore, would be meaningless. The region of finance and trade, like the phenomena of nature, are equally subject to n rhythmic order. There is a contagion of hopefulness, optimism and confidence, as well as depression, pessimism and tear. England ■ has started the contagion of optimism, which we can all hope will soon spread throughout the world.’’