EMPLOYERS MEET

Nelson Evening Mail, Volume LXI, 25 October 1928, Page 9

EMPLOYERS MEET

RETURNING PROSPERITY ASSURED "SELF-RELIANCE GREATEST OF ALL VIRTUES" ißy Tolegraph—Special to "The Mail")

WELLINGTON, This .Day

"In less than three weeks, ten years will have elapsed since the conclusion of the Armistice which ended the Great War," said the Hon. T. Shailer Weston, President of the N.Z. .Employers' Federation, at the annual general'meeting of the Federation to-day. "Those ten years have brought with them much trouble and many difficult problems. During them, farmers, manufacturers and business men alike must have looked back many times with longing to the prewar years when problems were few and the age was one of steady continuous prosperity. Time, however, if backed up by individual effort is a great ally and restorer and to-day we can congratulate ourselves that most of the difficulties following upon the war have been finally overcome, and'that the prosperity now steadily returning is based upon secure foundations.

"Most important of these foundations is an abundance of capital saved in New Zealand and not borrowed by' 1 the Government available for development of our industries—farming and manufacturing—at a reasonable rate of interest, the efficient organisation of those industries and an industrious and thrifty population. The improvement in all these three points during the last ten years is most marked. When the war ended, the British Government with all its resources was paying 6 per cent, for the money it borrowed. Industrial enterprises' in London were paying 8 per icent. ,To-day 4£- per, cent. is. the rate for ißritish Government -loans' and safe industrial enterprises in England can obtain the funds they require at 6 per cent. Here in New Zealand tho Government has been the first of the Australasian States since the War to borrow at less than 5 per cent. During the last twelve months, as a result of a good season and the efforts of its people, private capital has accumulated to such an extent that once more investors are finding a difficulty in obtaining good securities for their savings. In consequence, rates of interest have fallen it least !j per cent, and given two more reasonably good seasons, a continuance of the spirit of industry and thrift now manifested by the whole country, and Christmas 1930 should see New Zealand back to the neighbourhood of the 5 per cent, rate upon safe securities prevailing in 1913.

GREATER EFFICIENCY AND ECONOMY "The second sure foundation for future prosperity is the greater efficiency and economy shown by our people. In this respect' the dairy farmer has given the rest of New Zealand a magnificent lead. By improved herd selection, more extensive use of manures and more scientific cultivation lie has increased the quantity of his production. Even if the price of his products owing to a world-wide fall in prices should drop during the next five years as much as 25 per cent., there is no reason, why ho should not increase tho quantities of butter and cheese produced from tho same number of cows 50 per cent. Tfiis would mean a nett gain of 25 per cent, on his returns. In addition ho will have to the good, the advantage of the in creased gum her of cows he will be able to maintain upon the same acreage of land.

"No class or individual can prosper without sharing its or his prosperity with the whole community. The benefit to the whole Dominion through the increased output of the dairy farmers will be universal.

As to wool and meat it may be the room for expansion here is not so great. The numbers of our sheep have however, increased and just as the dairy farmer has benefited by greater knowledge and more scientific production so the sheep farmer and cattle grower will be wise to improve the quality of his flocks and to build up a herd of cattle able to compete with the Argentine. What is wanted is a class of beef cattle throughly suitable for our rough ond pooler hill country. Our timber and coal industries are reconstructing themselves and co-operating earnestly with the Board of .Scientific Research with a view to reducing the costs of production and making better use of their products. Both at the present time are facing great difficulties, but facing difficulties means idtimately improved efficiency and these industries will emerge from their troubles reorganised on a much surer foundation."

TOO MANY ENGAGED IN DISTRIBUTION

"As to our manufactures, a visit to any industrial exhibition is an eye opener as to the progress already made. . . The best assistance for them now is a definite, determination by the New Zealand public to use their 'products in preference to the imported article. Governments cannot create prosperity. They can, however, assist or retard its growth. . . At the same time some of us have an uneasy feeling that our own cities and towns are perhaps overdeveloped. There are too many engaged in distribution. The retail and wholesale trades are over-engined. We want more producers, especially primary. Probably owing to the universal return of the world to the gold standard, or rather a currency secured on a gold standard and other causes, we are in lor an era of falling prices. _ This means smaller profits, lower salaries and a force silently working to reduce land and other values. There are, however, other influences tending to compensate this. For example, a reduction in the rate of interest tends to increase values. '•Hence although we shall be wise to anticipate this fall we can hope that it will be a slow and gradual one, and one that we all will be able to adjust ourselves to without undue strain. With over-engined towns and hence intenser competition and smaller returns, the coming generations will be wise to turn their attention to farming, where as before mentioned increased effort and efficiency can compete successfully with the anticipated fall of prices. . . .

DEPENDS UPON OURSELVES "Personally," concluded Mr Weston, "I believe this country is on the eve of an era of steady if not startling prosperity. It depends however much upon ourselves. If we make up our minds to cultivate habits of self reliance, if we realise that self reliance is one of the greatest of all virtues and that nothing in this world is worth getting unless we have to work for it, if we avoid quack remedies and get-ric.h-quick methods as ways to individual and national prosperity the future should bring success and happiness to us all. Have we all the punch, grit and character to achieve this: