TYRE PRODUCTION

New Zealand Herald, Volume LXXII, Issue 22090, 22 April 1935, Page 12

TYRE PRODUCTION

DOMINION MANUFACTURE INVESTIGATING PROPOSAL REVIVAL IN WORLD TRADE The possibility of the establishment of a motor tyre factory in New Zealand was commented on by Mr. A. G. Cameron, vice-president and general manager of the Goodyear lyre and Rubber Export Company, who arrived at Auckland from Los Angeles by tho Mariposa on Saturday on a short business visit to New Zealand. It was announced some time ago that the Goodyear Company was considering the possibilities of manufacture in New Zealand, but Mr. Cameron said lie was concerned only with the general principles of the proposal. Ali details were being investigated by a New Zealand firm of engineers appointed by his company. It was true that the Dominion was the only country using motor-cars to any degree which did not possess its own tyre factory, but on the other hand none of the raw materials needed for motor tyres was obtainable in the Dominion. It had to be proved that tyres could be manufactured in New Zealand cheaper than they could be imported. The proposal was being fully im'estigated. Mr. Cameron last visited New Zealand in 1919, and he said he was interested to see the extent to which the country had progressed since then. He took an optimistic view of world trade conditions, stating that, in spite of the continued depression, there was a definite movement in several important countries toward better times.

In America, Mr. Cameron said, there was genuine evidence of a return of business enterprise. It appeared that the depths of the depression were experienced in March, 1933, and, although progress had not been st-eady since then, there had been a gradual improvement. Money rates were lower and the bond market, always a good barometer of business, was reacting favourably.

However, it bad to be admitted that many unfavourable faetorsj were still operating. Budgets were unbalanced and the New Deal in the United States was costing many billions of dollars. Federal obligations, reduced to £4,000.000 after the war, were now twice that sum, and Congress had agreed to raise the debt limit to over £11,000,000. In spite of lavish distribution of taxpayers' money, unemployment was - still widespread. Between 6,000,000 and 10,000.000 men were out of work and it was estimated that about a sixth of the total population was being supported by the dole. Nevertheless, there was an increased flow of private capital into private business.

Taking a wider survey of world conditions, there was in England an impression of solid and general progress. The improvement in British industrial conditions was confirmed by reduced unemployment and adjusted Budgets, with lower income tax as a consequence.

Mr. Cameron will spend about a week in New Zealand before continuing to Australia. Ho will pass through Auckland again on his way back to the United States