The Otago Witness. WITH WHICH IS INCORPORATED THE SOUTHERN MERCOUBY (TUESDAY, OCTOBER 7, 1930.) THE WEEK.

Otago Witness, Issue 3995, 7 October 1930, Page 45

The Otago Witness. WITH WHICH IS INCORPORATED THE SOUTHERN MERCOUBY (TUESDAY, OCTOBER 7, 1930.) THE WEEK.

Faise Optimism.

"Nunquam allud natura, allud sapientia dixit.” —Juvenal. "Good nature and good sense must ever join.”— POi'B.

Undue pessimism is not, perhaps, a good

thing where the finances of a country are concerned, but there is a

worse state of mind than pessimism, and that is unjustified optimism of the brand flourished by the Acting Prime Minister in the House of Representatives last week. In reply to the grave request of the member for Temuka that the Government should call together representatives of all interests in the State with a view to the discussion of New Zealand’s difficulties, Mr Ransom spoke blithely, even breezily, describing the proposal as a “ panic measure,” and voicing his belief that things are not as bad as they were in 1921-22, and that they cannot get any worse. It is unfortunate that those who have studied the position carefully—a study for which Mr Ransom has the best opportunity, though apparently not the inclination—cannot agree with him. Even the least-informed must realise that with a drop of some nine millions in national income New Zealand must take steps to stabilise domestic finances. It is difficult to know from what quarter he derived the inspiration for his reckless optimism, but the puzzle may be partially explained if we conclude that he has been reading that interesting pamphlet of the Department of Industries and Commerce, “ Bulletin No. 10,” issued by the authority of his ministerial colleague Mr de la Perrelle. As a summary of trade returns in the Dominion, presented in an entirely false light, this publication would be hard to equal. Practically on every page we find conclusions advanced entirely at variance with the accompanying statistics, or based upon a digestion of only half the story that the statistics tell. One paragraph we cannot forbear to quote, as an example of the wish that stultifies the thought:—

Exports of wool, it should be particularly noticed, only amounted to 553,298 bales, valued at £8,150,309, in 1929-30, in comparison with 087,833 bales, valued at £15,923,157 in the previous year—a reduction of 134.535 bales, valued at £7,7"%848. This accounts for the greater part of the reduction of £8,050,537 in .total exports for the 1929-30 season.

Is it necessary to assure readers that this does nothing of the sort? The question is easily settled with a couple of rough calculations on these figures, which reveal that the average price per bale in 1928-29 was £23 odd, and that in 1929-30 less than £l5, a decrease of over £B. This, coupled with the fact that many growers held their wool in the unfulfilled hopes of higher prices, does explain the reduction in our wool income —and in a way that the department will not face. Elsewhere we find it stated that the usual winter wool sales have been held in the Dominion, “ and, on the whole, competition has been fairly keen and prices satisfactory.” “On the whole!” — how illuminating—and “ prices satisfactory! ” —but to whom ? Not to the woolgrower, at any rate! It is difficult to believe that the public is seriously expected to absorb such fallacious generalisations. Later it is stated as a matter for rejoicing that “ merino wools a finding new outlets”; but how many growers in New Zealand are interested in merino wools? Mr Ransom has in this department a worthy supporter of his colourful utterances, but it would be unfortunate if the people of New Zealand gave credence to them—not that there is much fear of that when the average price of wool has fallen in a year to 8.59 d from 14.99 d per lb.

The RIOI Disaster.

Of major maritime disasters there have

been many to shock humanity, but in the field of aeronautics, while

many terrible accidents have occurred, none has been attended by any death roll to compare with that resulting from the destruction of RlOl during her first long voyage. The catastrophe was appalling both in its unexpectedness and completeness. RIOI was an experimental craft, but by no means an untried one. It was believed that the flight to India would serve to indicate ways in which later dirigibles could be improved in design to make them more airworthy, more economical to run, and more comfortable; but the possibility of the total wrecking of the airship had scarcely been contemplated. The success of the voyage of the sister ship RlOO across the Atlantic and back served to increase confidence in RlOl, for she was a larger and in every way, so it was thought, a better vessel. It is to be feared that the disaster will seriously shake confidence in travel by lighter-than-air machines, and, possibly, win lengthen the period of time that will pass before an Empire service can be inaugurated. Such conjecture, however, is idle until the facts of the tragedy have been fully investigated. In the meantime, it is possible only to regret the almost devastating nature of the disaster, with its terrible loss of life. It is particularly sad that Great Britain should, in this tragic manner, be de-

prived of the knowledge and experience in aeronautics of several prominent men.

British Empire, Ltd.

A statement made at the opening of the

Imperial Conference that “ our success will be judged by the progress that we achieve towards

economic co-operation ” fairly represents —or so it is to be hoped—the attitude of mind in which delegates representing the nations of the British Commonwealth are settling down to discuss matters of mutual and vital interest. The task that the conference has to undertake is lhat of unifying the whole of the Empire, and that can only be done by co-operation in matters of trade, which are the governing factor in the relations of countries. Honour for the flag, and pride in our British origin there is, but this is not enough—we must reciprocate in other things except feelings of goodwill if the Empire is to remain intact and to develop as it should. The potentialities for development are immense, and, possibly, are not sufficiently appreciated in this present hour of economic depression. It is well to remember that in many products the British Empire has a majority interest—it controls 60 per cent, of the world’s wool and rubber, 70 per cent, of its gold, 60 per cent, of its tin, 50 per cent, of its shipping, to name only a few products. A giant organisation of this nature cannot, rightly managed, fail, and it is the duty of the Imperial Conference to see that the great danger of disintegration is removed once and for all. If proposals that will lead to the co-operation of all parts of the Empire in reciprocal trade can be formulated during the next month or so—in other words, if the business of Empire, Ltd., can be put on a sound economic footing—the conference will have done ■the work that we have a right to expect it to do.

Waipori and the Government.

The Dunedin City Council has been called

upon to make a decision of some importance in regard to the future sup-

ply of electricity to the city. A considerable sum of money was expended at Waipori upon the works which have provided electric power in the past, and recently the council found it necessary to contemplate large extensions of this scheme to keep pace with the demand for electricity. Protracted negotiations with the Government for the sale of the Waipori works had fallen through, owing to the failure to agree on the matter of terms, and the experience of a few months ago, when electricity supplies were very seriously curtailed, with resultant inconvenience to everybody, served to emphasise the inadequacy of reserves. The City Council therefore embarked upon the construction of a new dam, estimated to cost £226,000, and already over £lOO,OOO has been spent upon this project. Now, however, an offer has been received from the Government to supply supplementary power from the State hydro-electric scheme at Waitaki, and the council has either to accept this on a contract of ten years, or go on with its own scheme. The purchase of power from the Government would, of course, make a great saving in capital expenditure, and from that point of view is desirable; on the other hand, the council is faced with the problem of the work already done on the new dam at Waipori. Whether this dam need be abandoned altogether, or further expenditure merely saved on it for ten years, is the point that must be made quite clear. ■ There is something to be said for the linking up of the hydroelectric enterprises of the Dominion, but the first duty of the council is to Dunedin, and it must decide which is the more profitable alternative.

The Railways.

An “ estimated annual saving ” of

£628,000 on our railways, which last year showed a record deficit on the

year’s operations of over £1,200,000, is not to be lightly disregarded, and it may be assumed that the report of the Royal Commission, which makes this recommendation will be studied with lively interest by the Government and public of the Dominion. The commission has, if such were possible, done less than most people expected of it. It is not perhaps unfair to assume that extravagances in our railways system are so widespread that it was not difficult to find ways wherein expenditure might be curtailed. A feature of the commission’s report that is not pleasing is that more than half the “ estimated savings ” actually consist’ of increased charges; in other words, while the commission talks glibly of saving money on the railways, it is really asking the public to make an extra donation to keep the railways going. The saving, then, is estimated .» at £294,000, and a greater part of the £628,000 named by the commission represents extra revenue it is hoped to obtain by charging the travelling public more and by higher freight charges. The corn* mission’s job, it was distinctly understood, was to find out in what directions economies could be made in our railways system, and in that job it has virtually confessed failure. The veriest infant could suggest that by bumping up railway charges one halfpenny a mile revenues would be increased—and the Government has engaged an expensive commission to tell it just that thing. The only part, of the report that is valuable relates to the recommendation that the railways should be removed from political control. The Australian railways are showing an annual deficit of four millions, mainly attributable to political control, and the removal of the New Zealand railways from Government influence is a sensible proposal; but it must be remembered that the public would still have to pay for the losses.

Lord Birkenhead.

■Perhaps the estimate of the Morning Post upon the late Earl of Birkenhead is as just as any that has been made: " The wonder is

not that he achieved, so much, but that with such brilliant talents and. great opportunities he had not achieved more.” When the Morning Post states, however, that Lord Birkenhead has not anywhere left his mark upon his age, its judgment becomes debatable. It is impossible to surmise for what length of time his works will stand, but as the holder of the highest legal offices in the realm he delivered some judgments which have been described as a permanent contribution to the science of jurisprudence. The matters that the Morning Post had in mind, however, are probably those concerned with the more spectacular enterprises in Lord Birkenhead’s spectacular career. Despite the fact that he wielded a vigorous pen, he has made only ephemeral contributions to literature, and his successes in both Houses, while they brought him honour and renown, are not likely to place his name among those of the greatest of British statesmen. “ Galloper ” Smith lived up to his name. He was brililant and industrious, he travelled hard, but he did not seem to be able to, or, more probably, could hot be troubled to, endure the pace. He abandoned a lucrative and important role as advocate to go in for politics, and, before he had achieved to the most important political position, that of Prime Minister, which might very well have come to him, he left politics for business. Death cut short his business career, else he might perhaps have become a great magnate and thus justified the people’s confidence in him in any activity he happened to select. Lord Birkenhead had his faults, but he

, possessed also many fine qualities, •which, apart from those of intellect and courage, have been summed up by Mr Baldwin in the phrase “ a loyal colleague and a generous friend.”