INDUSTRY AND TRADE.

Otago Daily Times, Issue 19204, 21 June 1924, Page 8

INDUSTRY AND TRADE.

In the course of his speech yesterday at the annual meeting of the Bank of New Zealand Mr Watson reviewed interestingly the conditions of trade dad discussed the outlook for the primary industries of the country. The Prime Minister, essaying the same task lately at the opening of the Winter Show in Dunedin, arrived at conclusions similar to those which Mr Watson has formed, with the difference that Mr Watson Is inclined to emphasise, more strongly than the optimism of the Prime Minister would permit, certain unfavourable features in the situation. Not that Mr Watson is pessimistic; his utterances were rather in the direction of a warning of what may very probably happen unless economy is observed and care is exercised. The abnormal conditions of the war period have left behind them a heritage that is unfortunate in more ways than one. Particularly to be noticed is a tendency to extravagance on the part of many who did not in the past expose themselves to the risk of blame oh this score. Mr Watson declared that “ extravagance is still rife,” but despite this “ retailers have not done so well as during the previous two or three years ” and consequently “ stocks are iu excess of requirements.” It may be that Mr Watson has specially in mind the fact that the importations of motor vehicles last year exceeded those of the previous year by £1,580,000 in value and that the purchasers of these vehicles have not belonged exclusively to the classes which are not sheltered by the existence of a moratorium. The inflation of values during the war period has its reflection in the dominion iu the high prices paid for land, not only iu the country districts but also in the cities and suburbs. Mr Watson sounded a note of warning in this connection when lie said that many of these city and suburban properties had changed hands at such high prices that the rent charges militated against any hope of success in business. To this we may add that some of the recent increases in the rentals of business premises in Dunedin and elsewhere are imposing serious burdens on the lessees and are calculated to check enterprise. The unsatisfactory financial condition of the majority of the meat-freezing companies in the dominion was also emphasised by Mr Watson. He described several of these companies as staggering under a load of debt so seri-

ous that only a merging of interests! could save them from liquidation. In part, this unfortunate state of affairs may be attributed to the omission on. the part of companies to build up sufficient reserves when times were prosperous, but there is no real escape from the conclusion that the enthusiasm of meat producers and a certain unwisa parochialism have led to the establishment of a larger number of meat-freea-ing companies than the requirements of the country demand. Passing, however, from the particular to the general, and speaking with an authority that/ cannot be questioned, Mr Watson asserts that the majority of the settlers in New Zealand are comfortably situated. Yet there can be little doubt that he spoke truly when he said that “had economy been practised during the years when phenomenal prices were received for our products, there would be less grumbling to-day over the burden of taxation and the difficulty of getting an adequate return on capital.” Withal, Mr Watson was able to view the future with equanimity, notwithstanding the fact that the necessarily fluctuating prices of our products are at times barely remunerative, but he insists upon a deflation of land values as a necessary condition of stabilisation. Moreover, the prospects of the country will he prejudiced if economy, public and private, be not widely practised. There is, in homely phrase, nothing wrong with New Zealand ; —the country can produce almost all that man can desire or need. Nor is there anything wrong with the people of New Zealandthey are happy, able, and .intelligent, though perhaps less industrious than they might be. It is not through idleness and luxurious living that the welfare of the community can be secured and maintained. In the country there is a call for industry, economy, and hard work. “ We have one of the. finest countries in the world,” says Mr Watson; “ let us keep it so by showing example to those who will inherit it after us.”