THE ECONOMIC SITUATION.

New Zealand Herald, Volume LXVII, Issue 20760, 31 December 1930, Page 10

THE ECONOMIC SITUATION.

There is a remarkable similarity in the tone and the contents of the New Year messages issued by the acting-leader of the Government and the Leader of the Reform Party. Neither Mr. Ransom nor Mr. Coates iniagines that the difficulties of an economic situation unprecedented in the present generation can bo overcome by that sort of easy optimism which is nothing better than deliberate indifference toward realities. Mr. Coates is inclined to place the strongest emphasis on the embarrassment of the primary producers: Mr. Ransom, however, agrees with him that "our mutual obligations and interdependence as fellow citizens" demand "unselfish co-opera-tion and equality of sacrifice." A measure of that sacrifice is suggested by Mr. Coates' estimate of the value of exports in the current season. His figures are formidable, but are probably not extravagant. A similar result is obtained by comparison of the returns for calendar years. In 1928, exports exceeded £56,000,000 and in 1029 £55,000,000. The total for this year will be about £46,000,000. Assuming that values

are maintained at the level of the latest index number, the total of exports in 1931 will bo only £36,000,000. Hence the immediate prospect is that the national income from exports in the coming year will be £19,000,000 or £20,000,000 less than it was in 1928 and 1929—a reduction of nearly one-third. Everyone hopcS that prices for our staple exports will presently improve, but the most optimistic forecast would not venture to predict an increase of 50 per cent., which would be necessary to restore them to the 1928 level. Hence, both Mr. Ransom and Mr. Coates emphasise the absoluto necessity of readjustments throughout the whole economic structure, and appeal for intelligent co-operation in the solution of the tasks confronting the Dominion. There is, however, a special responsibility falling upon Mr. Ransom to go further than diagnosis of the situation. It is not enough for the Government to acknowledge the gravity of the situation: the people of the Dominion naturally look to the Government for guidance or for the provision of means by which co-operation may be developed and directed along practical lines. Various proposals have been advanced for the consideration of the Government. It has rejected some and ignored others. Yet it should, as the Government of the Dominion, have something more positive to offer than an appeal to the indomitable pluck and determination of the people.