The Northern Advocate Daily “NORTHLAND FIRST” FRIDAY, JANUARY 28, 1938. Dominion's Economic State Under Review

Northern Advocate, 28 January 1938, Page 4

The Northern Advocate Daily “NORTHLAND FIRST”

FRIDAY, JANUARY 28, 1938. Dominion's Economic State Under Review

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IT was only to be expected that the Leader of the Opposition, the Hon. Adam Hamilton, would join issue with the Prime Minister when the latter declared publicly a few days ago: “It can he fairly claimed that two years of'a Labour Government have brought New Zealand to the highest level of prosperity it has ever experienced.”

That New Zealand should be enjoying a period of apparent prosperity is something indeed for which to he thankful. The Government is to he congratulated upon having had such favourable economic conditions in which to set out on its administrative voyage; even those most strongly opposed to Labour would prefer that the Government should be travelling an easy road rather than a rough one .'such as its predecessor had to negotiate. At the same time, there cannot he evaded the criticism that Mr Savage would evince more modesty, and come nearer a true description of the Dominion’s condition today, if he admitted that the Government lias been extraordinarily lucky in the spinning of fortune’s wheel. To claim, as he is doing, that “two years of a Labour Government have brought New Zealand to the highest level of prosperity it has ever experienced” is to betray disregard of the real cause of the improvement that has taken place in the country’s economic state. The boastfulness of the Prime Minister is reminiscent of the classic “Me and Gott” expression to 17111011 the ex-Kaiser of Germany gave utterance on a certain historic occasion. Unquestionably it is gratifying that the Dominion’s production reached last year the record value of £136,000,000, which, Mr Savage says, is “£10,000,000 more than the previous record figure in the boom year of 1928-29.” To what extent can the Government honestly claim credit for this huge increase in value of production? We venture to suggest that it can no more he credited with this increase than the previous Government can lie blamed for the calamitous fall in values which, occurred when the economic blizzard struck the world and paralysed overseas markets. 'The fall and rise in production values have been entirely beyond the control of New Zealand Governments, and it would be well if responsible political leaders realised and admitted, that fact. In view of the absolute dependence of the Dominion upon the prices obtained for its products sold on the overseas market, the lavish spending policy of the Government, which, as it advises the people generally to do, is living up to its income in a boom year, is a course of procedure that cannot but disquiet cautious people who know the value of reserves as a safeguard against times of adversity.