ROAD TO RECOVERY

New Zealand Herald, Volume LXXII, Issue 22198, 27 August 1935, Page 11

ROAD TO RECOVERY

ENCOURAGING EVIDENCE MANY ADVANCES MADE OPTIMISM REPLACES GLOOM [BY TELEGRAPH —OWN CORRESPONDENT! KANGIORA, Monday Signposts on the road leading New Zealand back to prosperity were enumerated by the Prime Minister, Mr. Forbes, in his address at Bangiora tonight. In the main objective, nil improvement in the position of the primary producers, the Government's efforts had been extraordinarily successful, said Mr. Forbes. Tho difference between farm costs and prices, based on a comparison of index figures, had been reduced from 609 in 1931 to 155 in 1934. The overseas trade position was much more favourable, both exports and imports being decidedly higher. "Tho end of this trading year was, I believe, the brightest since the depression began," said Mr. Forbes, "and I say this in spite of tho fact that wool values were lower than they were in the previous export season. The value of wool, however, is again showing encouraging signs of improvement, and I think we may bo confident of increased prices for the forthcoming clip." Meat and Butter Exports of lamb, mutton and porkwere higher in quantity and in value than in 1933-3-i, the phenomenal increase in the value of pork since the middle of the depression being particularly gratifying. The following were the figures for 1934-35, those for 1931-32 being in parentheses: —Lamb, £8,832,289 (£6,275,383); mutton, £1,905,414 (£1,575,477); pork, £1,313,502 (£246,045). Mr. Forbes added that the prices of New Zealand butter were maintaining their upward tendency and New Zealand had now supplanted Denmark as the largest supplier of butter to the British market.

There was a general state of improvement in the trading position as a whole, with the notable exception of wool. The increase in the import trade during 1934-35, which almost reached the 1930-31 level, had markedly reduced the visible balance of trade, but this, due as it was to greater purchasing power and demand in the Dominion, was a most encouraging sign. Employment Improves

In other respects, too, there had been gratifying indications of recovery. Factory production figures, for example, showed an increase of more than £5,500,000 over 1933, and an increase in the number of persons engaged from 68,921 to 72,651. The greatly improved condition of the bank figures also provided a very striking indication of the upward trend in the Dominion's business.

A satisfactory feature of the past 18 months was the definite improvement in the employment situation, and another noticeable sign was the increase in the number of people travelling overseas and within the Dominion. In the year ended March 31, 1935, a total of 12,921 tourists visited New Zealand, this being the highest total on record. It was calculated that the wages bill of the Dominion increased by £3.600,000 last year. There was now a pronounced spirit of optimism in the place of gloom and prospects undoubt-

cdly wore better than «ifc any time since the depression began.

POLICY FOR FUTURE EMPLOYMENT AND HOUSING SOCIAL INSURANCE PLANS' [by telegraph—own correspondent! KANGIORA, Monday " The general policy of the National Government in the future," said the Prime Minister, Mr. Forbes, in the course of his address at JRangiora tonight, " must be to maintain the confidence which has now happily been restored, to create the conditions in which individual enterprise may flourish, and to supply where possiblo the means whereby it can be assisted and materially encouraged. " We intend to make a special effort in connection with the unemployment problem, in the hope of putting it 011 a sounder basis, and we intend to take every possible step within our poAver to stimulate industry in order that a greater number of workers may be absorbed into the usual channels of employment. " So far as overseas trade is concerned we arc paying special attention to improving the quality of our products and to exploring to the utmost every possibility of extending markets. We have recently appointed a Trade Commissioner in Europe and another in the United States. As opportunity offers, it is our intention to extend this representation to enable us to take advantage of any improved international conditions and any relaxation of present trade restrictions that will enable us to widen our markets. " The question of housing is receiving our very careful attention. While in the United Kingdom, the Minister of Finance and I devoted a considerable amount of time to investigating the remarkable progress that is being made there in this matter. Wo collected a great deal of information, and Mr. P. H. Paekwood, an engineer of the Public Works Department, who is at present in England, has been detailed to make a special survey of the position and to collect all possible information, ™nrticularlv as to th-> class of building that is being erected and the cost of construction. " Wo have also under examination many suggested schemes for improving the social conditions of our people. These include the questions of social insurance, health insurance and medical attention, together with many other matters for social betterment."