SIMILAR PROBLEMS

Nelson Evening Mail, Volume LXVI, 31 March 1932, Page 11

SIMILAR PROBLEMS

EFFECT OF DEPRESSION SOUTH AFRICA AND N.Z. Although the commercial, political, and economic interests of New Zealand * and South Africa are not identical, ; the outlook of the two Dominions on the broader issues of the present depression are very similar, as is indicated in a letter received a few days ago from an ex-New Zealander who has been in the South African Government’s service for some thirty-six years. Equally with New Zealand South Africa has had its period of anxiety concerning the exchange question, and although the Civil servants in the sister Dominion have already suffered two wage cuts, the fear of retrenchment still prevails. “I do not propose to go into the question as to whether the Government should or should not go off the gold standard,” says the writer, under date 10th February; “it seems to me that even in the case of England the final result of ‘going off’ has still to.be seen. But the Union Government has made the question a political—which means a racial—one. Racial feeling has never run higher than it does at present, and in tlTe meantime the financial .state of the country is growing daily worse. We have no internal trade, for we have no population and no money. We depend on our exports—wool, maize, and gold. As regards wool and maize, the exchange is so dreadfully against us that the farmer cannot send these commodities overseas. To bring up the selling price in England, which is the only market we have, the Government is giving a subsidy, and to raise the money for the subsidv is the problem. You see the . back-country farmer is the voting strength of the present Government, and to hold that vote the Government will bleed the rest of the community white. And tho time has come when this part of the community has no more ‘blood.’ It seems to me that the Government is trying to prove to its racial countryside that they are economically in.dependent of Great Britain. It is a | dramatic gesture, but futile, because jit is on.the British market we depend: land anyway, no country is ‘economicali]y independent’ to-day —we are all inter-dependent on each other’s requirements and trade. GOLD EXPORTS “As regards the export of gold, we i stand well because the price has risen from 85s to 120 s per oz —but then the moment the ‘credits’ from the sale of the stuff in London are re-transferred to South Africa they lose 27 per cent, in value. ( £IOO in London is only worth £7O in Johannesburg to-day). “Don't be surprised if my next tells you lam on pension. The constant 'fear of retrenchment is very trying. Let ns hope for the best—and don’t

forget we still have much to be thankful for. Most people to-day are their wits’-end to exist.” FOOTBALL PROWESS Adding a line about the return of the Springbok footballers from their tour in the United Kingdom, the writer states that they had a line record, but were lucky to win all their internationals. . . . Undoubtedly their captain,

Bennie Osier, saved them time and again by his cool-headedness and knowledge of what game to play in a time of threatened panic. “Like your (or our) Mark Nicholls,” the ex-New Zealander remarks, “he is blessed with a football genius which can win a game on its own.”