“FOR A RAINY DAY”

New Zealand Times, Volume LII, Issue 12093, 21 March 1925, Page 5

“FOR A RAINY DAY”

OIVERNOR IN THRIFT “TAKE STOCK AND LOOK TO THE FUTURE.” ADVICE TO BUSINESS HEN* (Special to "N.Z. Times.”) AUCKLAND, March' 20. The necessity of maintaining the highest possible quality in export produce and for exercising more thrift and foresight in view of a rainy day formed the basis of an address by the Go-vernor-General to members of the Auckland Chamber of Commerce. “I’ve never had much reputation for oourago,” continued His Excellency, “hut on this occasion I think I deserve a medal, for I am going to speak on subjects upon which I feel most diffident.” He was expected to say something on matters in which his hearers were all experts. Not only might one tumble into pitfalls of controversy, hut one might exhibit ignorance of matters of commerce and trade. Between now and fifty years ago, when he left New Zealand as a boy of ten, conditions had changed. The first thing- that struck him was the difference m exports and imports. In 1873 imports were6i millions, in 1923 they were 43 millions. In 1873 exports were £5,600,000, to-day exports were about 46 millions. It gave toe layman an idea of the country’s wonderful progress. NEW ZEALAND’S WONDERFUL TRADE. New Zealand, in trade per head, with one possible exception, held the highest position in' the world —£67 per .head. He would like to see these figures emblazoned in letters of gold, so that people would recognise that New Zealand was now a country to be reckoned with in the- markets of the world. That fact was not realised’ at Home. He had tried- to explain the possibility of trade revival at Home, and he had advocated' that help lay in the direction of trade with the dominions. He saw that -exports had reaohed a high figure. The usual explanation was high prices. No doubt that had a good deal to do with it. The main pastoral exports were exported in 60 per cent, bigger quantities than ten years ago. That wae not due to .the increased population, which had only increased 25 per cent., and, moreover, the population in toe towns had greatly increased. But. notwithstanding migration to the towns, we were producing a greater surplus for export with fewer people working, which pointed to increased efficiency, which all pointed to the great increase of prosperity of toe country. PROSPEROUS TIMES. His Excellency added that the Dominion was in toe meantime living in a time of prosperity, but we would be foolish not to take stock and look to the future. We should remember our imports are large, and it, would be wise always to watch toe imports and 'consider whether they represented ■ a fair proportion of articles necessary for the development of toe country (articles of consumption), as against luxuries. A big increase of exports followed by big imports oould only be good if proper proportions were properly observed. Did these imports represent too great a stock held by trade? If there was a sudden drdp of prices toe. result, would be a decrease in toe consuming power of the population, whioh would hit the traders. Then in regard to borrowing,. the increase of borrowing by local bodies had doubled in ten years. ' The amount outstanding on mortgages had increased from 114 millions to 258 millions in 1923. No doubt the country oould stand that, but we should remember wd could not count on high prioes continuing, and a fall in, say, wool, would make a great change. j “A TIME CXF THRIFT.” There-should he a time of thrift, and a time when people should consider rednding instead of increasing thpir liabilities.. It was no more than oomraon prudenoe to suggest and to consider in the first place “thrift.” What we had to do was to provide against toe possibility of a coming rainy day. The prosperity of the country consisted ip having the maximum surplus of pastoral goods for export, of the best quality and at the lowest cost of production, so as to obtain the maximum prices and maintain them, and so compete with the other rival producing notions. That seemed to he the maxim on which we should work, coupled with thrift and foresight, in view of the possible, rainy day. (Applause.)