THE ECONOMIC SITUATION.

Otago Daily Times, Issue 20963, 28 February 1930, Page 12

THE ECONOMIC SITUATION.

OUTLOOK LESS FAVOURABLE. NO NEED FOR SERIOUS PESSIMISM. - (Special to Dajlt Times.) AUCKLAND, February 27. That general economic. outlook appears _ on the. face of it less favourable than it has been for some time past and the causes of the present position in New Zealand wil be found on analysis to be repercussions of the adverse conditions which have materialised during the past 12 months in England, the United States and Australia,’ said the newly-elected president of the Auckland Chamber of Commerce (Mr. Malcolm Stewart) at tne annual meeting of the chamber to-day. ‘•These influences, accentuated by the continued tendency for world prices to fall, have made the present outlook in New Zealand perhaps far from rosy,” said Mr Stewart. “ There is, however, no need for serious pessimism, particularly in New Zealand, and especially in Auckland. Rather is there need for confidence that the Dominion will win through. It is true that there has been a substantial drop im wool prices, but as regards dairy produce, m which t£e Auckland provincial district is mainly interested, such a fall in prices as has occurred has had its effects more or less neutralised by the increased production in sympathy with improved farm methods. The net effect is that for one year ended December 31, 1929, the exports from New Zealand have dropped only 1 per cent, in the aggregate value as compard with 1928. At the same time, however, there has heen a not entirely healthy increase of some 9 per cent, in the aggregate value of imports, an increase which is mainly in luxury articles such as motor car. the need of importation of which in such large quantities is problematical.