TRADE DEPRESSION

New Zealand Herald, Volume LXXV, Issue 23026, 2 May 1938, Page 11

TRADE DEPRESSION

POSITION IN AMERICA INFLUENCE ON DOMINIONS FUTURE OF DEMOCRACIES The effects upon New Zealand and Australia of the economic condition of North America, the growing need for co-operation between these countries and the importance of an adjusted conception of democracy were points stressed bv Sir Herbert Gepp, managing director of Australia Paper Manufacturers, Limited, who arrived at Auckland by tho Aorangi from Vancouver yesterday. He is returning to Melbourne after an extensive business tour covering 8000 miles by road and rail in the United States and Canada. Sir Herbert visited North America, in company with two of the senior technical officers of the company, for the purpose of meeting leaders in the pulp, paper and board industry. He said that, unfortunately for the world, the United States was experiencing a severe business depression, although every effort was being made by the Federal and State Governments, together with all branches of commerce and industry, to make the adjustments that were necessary to improve the position. Importance to Hew Zealand "One of the outstanding impressions I have gained from close observations j during my trip through North America is the fact that each country—in industry and, indeed, in general welfare —is becoming more and more closely knit together," Sir Herbert stated. "It it; definite that no State can be continuously prosperous in a world where adversity is affecting other important countries. Therefore, an improvement in the present condition of North America is of vital importance to New Zealand and Australia." The greatest world phenomenon today was the increasing importance of the few remaining democracies getting together to solve the problems of adjusting democratic government

and' preventing the trend toward gome form of dictatorship. __A number of the dictatorships had sprung up in the last few years had been undoubtedly due to the despair of the people. More attention should be given by everyone to questions of readjusting the social system. The ever-increasing ability to produce had been brought about by intensive research and there was need for similar work in the case of the science of mankind. View of Unemployment "There is no use dodging the fact that unemployment is almost negligible in dictatorship countries to-day, while it is the menace of democratic communities," Sir Herbert said. "Our experiences in New .Zealand and Australia during the last 30 years in making some adjustments in social control are of use to-day in North America, and the experiences of Canada and the United States are of importance to us. This is particularly so when vre remember that we are English-speaking races on the opposite sides of the ocean, which, from all practical aspects, is becoming smaller and smaller." People had to realise that the world was in a "nasty sticky mess," Sir Herbert added. The peoples who had allowed such a condition to arise through the want of sufficient vision would have to get very busy with corrective measures.

Sir Herbert ■will leave for Wellington to-day and will confer with the chairman of his company, Sir Hugh Denieon, who is leaving for Europe by the Kangitane. While in Wellington he hopes to convey to the Prime Minister, Mr. Savage, something of what he termed "the light and shade of the general world position as he saw it." While in the United States and Canada lie met a large number of representatives of government, finance and industry, and he believed he had gathered facts which would be of value to the two Dominions.