FINANCIAL OUTLOOK.

New Zealand Herald, Volume LVII, Issue 17475, 20 May 1920, Page 4

FINANCIAL OUTLOOK.

WARNING BY MR. MASSEY.

HOW TO AVOID DEPRESSION.

"CARE, ECONOMY, INDUSTRY"

[by telegraph.—press ASSOCIATION.] WELLINGTON, Wednesday.

Interesting references to public finance were made by the Prime Minister at the annual dinner of the New Zealand Dental Association to-night. Mr. Massey said he did not wonder that there was to-day a great clamour for public expenditure. Development, improvement, and expansion were wanted in every direction, and many of the claims were in themselves good. New Zealand, however, had only a certain amount of money to spend, and that point could not be emphasised too strongly.

"It will take us all our time to avoid a wave of depression," said the Prime Minister. "We do not want depression, and I believe that it can be avoided, but it can be avoided only by care, economy, and industry on the part of the people of this country. We must curtail the extravagance that has been going on in town and country for a long time past. Money has been plentiful in New Zealand, more plentiful, perhaps, than in any other part of the Empire. The people of the Dominion concentrated during the war, on doing everything they possibly could to supply the heart of the Empire with the products it required for the use of its people, and for the army and navy. The consequence has been that money has poured into this country in a way we had never experienced before. But a change is coming over the scene. You will have seen from London that already there has been a drop in prices. The commandeer of our products is coming to an end, and we must not expect to receive for our principal products the prices that we have been receiving. There is no question about that. Some people will Bed consolation in a reduction of the cost of living. We all want to see the cost of! living reduced, but remember that we aro not likely to have the amount of money to spend that we have had during the last few years. That is why I wish to impress upon the public of this country thel necessity of being careful."