CONFIDENCE IN FUTURE.

New Zealand Herald, Volume LXVII, Issue 20721, 14 November 1930, Page 8

CONFIDENCE IN FUTURE.

NEED OF OPTIMISM. //' WISE SPENDING URGED, .'- / • - / AID TO BETTER TIMES. 'A ppi/iod of Hull timps, such as thai tiow being experienced by New Zealand, anil, in many other countries, tics up money anil has the bail effect of causing people to bo 100 rigid in their saving. It. has been said that if is not only a .verbal trick to say that. the worst of a depression is its depressing effect, for it is always ri little deeper, sometimes a good deal deepei, than it. need be, because it stops reasonable expenditure which people can afford, and so makes the pinch more severe all round. The return of good times brings confidence and (lie loosening of tho restrictions on spending but, as was pointed out yesterday by a lending business man, now is iho time for people to show confidence in themselves and in the fuluro of the country. A little, easier spending en the part, of those who liavo money and can .afford to spend it would lead to a steady return to normal activity. ,This business man went so far an to attribute part of the blame for tho present quiet conditions to the pessimism of the financial'leaders and the bankers, which, he claimed, was stultifying business and was against a return to healthy activity. These financial leaders, instead of telling their clients that this was not the time lo spend, should say that money' .wisely invested now would not only help toward the improvement of conditions, but would show them a profit when better times returned. This was the lime to circulate money and tho time lo do to. to the best advantage, he said. In bad times people were ready lo make fantastic excuses for not spending money ■when that very expenditure would bo to their advantage. Good Times Will Koturn. "It must bo obvious that real estate, particularly in the business centres of cities and towns surrounded by good productive rural areas, must come inlo its own " with , the passing of the present diill times," said one business man yesterday. "While fluctuations in values in real estate have occurred from time to time they are only iu keeping with the ' fluctuations revealed in joint stock companies and in almost every type of industrial business throughout the world. "We have only to recall the effect, of . the great Australian slump in tho early nineties of last century, when Australian cities, notably Melbourne, received a very serious setback. At. that time houso properties and many city business sites could not find purchasers and, in some instances, tho landlords actually gave free j tenancies fur the occupation of premises |to maintain their insurance covers. In cpite of , this setback Australia epierged I triumphantly, and in the intervening years I .wonderful strides have been made in | tho • development of the principal cities, '.the rural towns and the country lands. f It is but reasonable to assume that in ' time Australia will'overcoins her present I (difficulties. "But what is the position in New Zeai land ? We cannot be said to be display- [ ing: much optimism in visualising a re- ! fcabihtation taking place in this coun- j try, which is admittedly more advantage- j / cusly placed, ' with its increased production, than Australia. What 5s needed to-day undoubtedly is for the older citi- ' zeris and settlers to first throw their minds 1 back to their earlier experiences in this i country when the rural lands, the basis of all our ratable values, were, in t.hem- ' selves, of little saleable value, because ' of the lack of the means of transport to send their limited products to the | world's markets. It was then clearly demonstrated, that. it was only the vision and determination of the pioneers, backed 1 financially by the trading firms and banks, winch enabled them to go forward in a spirit of optimism. Value of Spending. " The outcome was that they brought this-''country to the wonderful state of productivity apparent in the past decade or:two. The younger settlers and citizens Of • to day who have reaped the benefit of- comparatively easier times must bo brought to realise the great heritage they enjoy and determine to go forward with confidence in the future. " Tho?e who have been more fortunately bl6h&ed : have surely a duty in the present conditions to see that their financial resources'a re, judiciously spent or invested to further greater production and development. Without tho free circulation of this money and the provision of credit, and particularly credit for legitimate business and 'industry, this country cannot succeed as it should. If our real estate values are not reasonably maintained then obviously the rates and taxation • throughout, the country must be lessened and further curtailment of business must ensue. " If financial and other advisers would impress upon their clients that legitimate Spending'' is always sound thero would Boon-be an all round improvpment. There should be no fear of the future. Every tiade and industry in the city, for instance, could benefit by the greatpr circulation of money. If a person or institution decided to purchase property 'for residential or business purposes a rebuilding or remodelling scheme would 'probably have to be faced. The putting in hand of this would first of all benefit the Government in the way of stamp duties on the conveyance or transfer of the property, if would mean more employment fpr lli* legal profession, architects and builders would enjoy greater activity and the men in divers trades would be called upon to meet the work in hand. This all means the employment of labour, which in turn would result in greater spending power ori the part of the whole community. If the pessimist, on the other hand, has his way and prefers to lock his money up on fixed deposits or debentures those very securities must in time he lessened in value by re.i3on of the standstill of business activity.'!