THE EXISTING DEPRESSION

Nelson Evening Mail, Volume LXIV, 19 June 1931, Page 8

THE EXISTING DEPRESSION

PERIOD OF RECOVERY SLOW AND FULL OF HARDSHIPS (jjv Telegraph—Special to "The Mail”) WELLINGTON, This Day. In the course of some general remarks while moving the adoption of the report and balance-sheet, at the annual meeting .of shareholders of the proprietors of the Bank of New Zealand the chairman (Mr Watson) staled :

“We are all proud of Ihe position 1.0 which the Bank lias attained— the shareholders as well as the directors limt sinlf—-and I believe that the vast, majority of the people of the Dominion are pleased to have an institution of such strength and usefulness, but sometimes—perhn])s ordained in order that, we may walk humbly—irresponsible critics air what they believe to be I lieir wisdom by talking or writing against us. In similar ease the Governor of an important bank in South Africa remarked humorously, ‘Most of the criticism reminds me of the story of the liov who was one day found whipping a load and muttering, ‘l’ll lyru you to be a toad.’ ’

Tin* circunudances of the present recession in I lie prices oversells of our primary products, and also in our internal trade, are so well known Unit F need not dwell on them. To achieve greater prosperity must he the practical endeavour of everyone in the dominion, considering how well we compare with other countries, His Excellency, Lord Blcdisloe, from his expert knowledge of scientific methods in Europe, lias publicly adduced ’ what should lie done to advance the agricultural and pastoral interests here, and the labours of the Cawthron Institute, the Massey and the Lincoln Agricultural Colleges, and the Department .of Scientific and Industrial Tie,search, add their important services. Of land improvement there is mueli need. In disposing of hush lands in the past, not enough earn was taken by the Government to see that purchasers or tenants owned sufficient money, or could obtain sullieient credit to develop their holdings; in many eases rent had to he paid on large areas while the holders find not the means to bring more than small portions into grass, and, being nimble to farm the clearings properly, bad to allow them to relapse into fern Mini second growth. Even rich flat lands were cropped and grazed for many years without sullieient. application of fertilisers, until it was found that the soils were exhausted by continual cropping, and the best grasses in the pastures were eliminated. Of late years manuring and liming have been practised to greater extent, especially on dairy lands, but mueli more is necessary to obtain the best results from sheep and cattle country. ' “The land being the basis and source of welfare in the Dominion, it is to the interest of everyone that the best should lie,made of it. But for it there would be little to do for any of us. The Government recognises the importance of retrieving the productiveness of abandoned farms, and are doing something in that direction both, to improve the land and to afford employment but without further borrowing their efforts must needs be limited, Owing to the low prices for last season’s output, many farmers have not. the wherewithal to acipiirc the fertilisers necessary to improve and maintain the quality of their soils, and it rests with bankers, stock and station agents, and mortgagees to help them. This Bank is straining its advances to its own customers for the purpose. “In comparison with the years before the war, farming costs are so high that, they, combined with the reduced prices, prevent the majority of fanners from carrying out their operations profitably, but there is hope that conditions will soon arise which will bring about a favourable change. “There has been very little demand for land, either urban, suburban, or rural, and indications are that sales can only he effected on what will be the future liases of values. For many years warnings have been given from this chair as to land values being inflated beyond all reason, but little attention was paid thereto. “No doubt most of your here present know the facts and happenings just stated quite as well ns the Board does, but. we would remind you that many of our shareholders reside in Great Britain and elsewhere, and that they expect to lie told about matters of importance affecting their investment. “The period of recovery from the existing depression will no doubt be slow and full of hardships, yet; that there will he recovery, though not perhaps to the standard of recent, years, may in (he light of past experience lii> confidently counted on. Even middle-aged people have seen or read of several depressions in various countries, and have known of their passing away to lie succeeded by periods of Confidence and prosperity. The earth and the sens are bounteous, and tlie affairs of men in any free country are in their own bands to make or niili , ..j .Perhaps it will occur to all of your here that better might have been done in the past by the people of Australia and New Zealand ifor themselves and their ■descendants. By wiser action and living within national means, hotter times will assuredly come, and the sooner the action the sooner the re-1 suit.”