ECONOMIC CONDITIONS

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

ECONOMIC CONDITIONS

SHRINKAGE OF EXPORTS

SHEEP FARMERS BADLY HIT

(I)y Telegraph—Special to “Tho Mail”)

WELLINGTON, This Day.

“Despite increased production, Hie shrinkage of many millions in the total value of exports denotes how seriously this country has been affected by tho present wofld-wido depression,” remark, ed Mr Watson (chairman of the Board of Directors) when moving the adop lion of the report and balance sheet at, the annual meeting of the proprietors of the Bank of New Zealand today. "AT j most every class of tho community lias suffered, sheep farmers most of all Traders have been working on an inadequate maigin of profit or have nutdo no profit at all; indeed, in many cases severe losses have been sustained. People who are dependent on dividends i from Joint Stock Companies have had 'their incomes greatly reduced Unemployment is serious and will continue until labour can be profitably employed. That there will he a return to the prices of a few years ago is most unlikely. Values of our assets, must lie based ufi the competitive value of our products in the markets of the world, and standards of living adjusted accordingly. A great many persons who have enjoyed 'substantial incomes now find themselves .'"Without any income and forced to trench on capital’ built up in most cases by ! years of industry and self-denial. If they have not the necessary means, they must, regrettable as it may be, reduce llicir standard of living—in short—tho eolil must be cut according to the cloth. If the standard of living can he improved in countries which compete with this country in the markets of the world, then tho standard in Iho Dominion can he correspondingly improved. By tho limo the country settles down to a sound basis, very many millions will have been written off existing values. “The recent ‘cut’ of 10 per cent, in salaries and wages will, in many instances, indict more or less hardship, but I would emphasise that a great many persons lmvo been obliged to face losses far in excess of 10 per cent. “Continuance of Hie Moratorium of 1914 for years beyond the period for which there was justification brought mortgages over landed propor.tiesi into strong disfavour, the result being that ,i borrowers on mortgage of land find that funds for such investments are more .or less limited to those in tho hands of tho various Government, lending depart- . ments. Tlici’6 are, 1 no doubt, cases where mortgagees have attempted to deal harshly with, mortgagors, but wo have no hesitation in. saying that in. tho vast majority the last thing a mortgagee wants is default •to bo made. In recent years, large sums have been written off amounts of mortgage debts, extension of time granted, and interest Yates reduced. A mortgagor who ‘plays tho game’ hils little to fear from his mortgagee, but it is regrettable to have to say (bat a great many mortgagors do not ‘play the game.’ “Lust session of Parliament, another Moratorium on mortgages was enacted, which wo fear will do more harm, than good, inasmuch ns it, will tend to make lenders shyer than over, of mortgages, and, in future, to force a greater volume of business than ever into the bands of Government departments.” ,!