AGGRESSIVE AMERICA.

New Zealand Herald, Volume LXVIII, Issue 20924, 14 July 1931, Page 11

AGGRESSIVE AMERICA.

FIGHTING THE DEPRESSION. MOVE TO IMPROVE BUSINESS. TRADE TAKES HOPEFUL TURN. Aggressive methods aro being planned to increase business in tlio United States and Canada and so deal an effective blow to the prevailing depression. An interesting account of the economic conditions in those countries was given yesterday by Mr. David Cody, director of the Charles Hainc.s Advertising Agency, Limited, Wellington, who returned by the Monowai after a visit of four months to America

< Having called on 170 commercial houses and visited the principal cities in both countries, Mr. Cody gained numerous opportunities for studying America's present-day business conditions and methods. He said the United States and, to a lesser degree, Canada, had unquestionably been passing through a distressing and protracted period of difficulty, and both countries were becoming reconciled to the fact that it would be a matter of years rather than months before anything liko the old standard of prosperity could be restored. Stimulation of Trade. " Politicians, economists and business men had all likened the first year of the depression to tho 1921 slump, and kept assuring one another that the corner would soon be turned," said Mr. Cody. "Now, however, with the realisation full upon them that things have failed to improve of their own accord, manufacturers and retailers alike have commenced to make determined and even frantic efforts t,o stimulate trade. American business still religiously clings to the idea that, if only it can once again bring about mass consumption, that one thing will go a long way—if not the whole way —toward curing at least tho domestic depression.

" Just when business conditions will begin to grow substantially better in the United States and Canada is difficult to predict," said Mr. Cody. " A countrywide analysis of retail trade by a responsible body estimates tho decrease of business at between 15 and 20 per cent. Prices of most manufactured commodities arc, generally speaking, very low in the United States, and undoubted bargains are to bo had on all sides. Many retail concerns handling low-priced goods report good business. One large department store in New York, for instance, enjoyed greatly increased sales and a substantial advance in revenue during May and June. " Emerged From Worst Phase."-

" Manufacturers in several fields report progress over the corresponding period of 1930, although that experience is exceptional. Others have aggressively planned for increased business between now and Christmas. On all sides there is a determination to force conditions to improve. Newspapers and advertisers alike are carrying out constructive propaganda. Bad times are so diametrically opposed to the American ideal of permanent prosperity, thought to have been reached in 1929, that business men are commencing to move heaven and earth to effect an im-

provement." The president of one company said to Mr. Cody:—"America is sick and tired of the depression, and is going to make an herculean effort to cause things to happen, instead of standing by and hoping they will automatically happen." Eoger W. Babson, who is regarded as one of America's leading economic authorities, recently staked his reputation that business had emerged from its worst phase. Babson's pronouncement created a most favourable impression because of his lifelong experience in gauging business trends. However, he was careful to point out that recovery would be slow and tedious.