The Otago Witness. WITH WHICH IS INCORPORATED THE SOUTHERN MERCURY (TUESDAY, OCTOBER 14, 1930.) THE WEEK.

Otago Witness, Issue 3996, 14 October 1930, Page 45

The Otago Witness. WITH WHICH IS INCORPORATED THE SOUTHERN MERCURY (TUESDAY, OCTOBER 14, 1930.) THE WEEK.

Co-operation Wanted.

"Nunquam allud natura, allud sapientia dixit.” -Juvenal.

"Good nature and good sense must ever join.”— Pope.

The Imperial Conference has now settled

down to a consideration of what should be the most important part of the meeting of Empire

delegates, namely, the economic relations of the British Commonwealth of Nations. In his preliminary address, Mi - Thomas, speaking as a British Gov ernment delegate, produced statistical information which, while it necessarily cannot show the whole position of interimperial trade relationships, is immensely valuable as indicating the main features of Empire trade. Possibly the most interesting features of the statement by Mr Thomas are: (1) That Great Britain’s total imports are £1,220,000,000, of which imports from the rest of the Empire comprise less than one-third, £358,000,000; (2) that of the overseas Empire’s imports, £354,000,000, or about one-half, are from other parts of the Empire, and the rest, making a total of £778,000,000, are from foreign countries; (3)’ that imports from the dominions to Great Britain in every ease, with the exception of South Africa, are greater than the exports of Great Britain to the dominions. In the ’ease of New Zealand, exports to the United Kingdom total £47,500,000, and imports from the United Kingdom amount to £21,000,000, or less than half. These figures give rise to two reflections, first, that Great Britain could take more of her imports from the dominions, and, secondly, that the dominions might show greater reciprocity. Unfortunately, practically the only suggestions made by dominion delegates in response to Mr Thomas’s statement were to the effect that the Mother Country should set up protection tariffs giving exended preference to Empire goods. These suggestions are not even an attempt at a remedy; they are, in fact, selfishly exclusive. It was to find some way whereby co-operation to the advantage of all parts of the British Commonwealth, including Great Britain, might be furthered, that the Imperial Conference was asked to consider the economic situation as it relates to the Empire, and it is to be hoped that the dominions will, as discussions progress, show their realisation that reciprocity is the key to the whole position—what form of co-opera-tion it is conference’s business to decide.

Railway Works.

So much has been written concerning the railways that Mr

Coates, in speaking on the Public Works Statement, could not fail to

be understood, nor would it be possible for the most obtuse member not to appreciate that he was speaking nothing less than sound common sense. Last year one million and a-half pounds were expended in railway construction, and the appropriation for a similar purpose this year w-as approximately the same amount. The year is now about halfway through, and at least Half the appropriation has been spent. And this in spite of the Prime Minister’s own recent admission that lines now under construction are expected to show an annual loss of three-quarters of a million pounds. In spite, also, of his statement three months ago: “ The bald fact is that an additional burden of £1,250,000, less the sum total of any savings that may result from economies in expenditure, must this year be carried by the taxpayers.” To offset this, the Government has the Royal Commission’s recommendations for economies amounting to £294,000, and for the raising of charges to produce £324,000 —all lumped

under the assuring heading of “ savings.” But even apart from the doubtful nature of “ savings ” which, in reality, are extra revenue derived from the public, and therefore another charge on the pocket of at least some taxpayers, there is a grave doubt whether the sum hoped for may be procured from this source. The Government’s other hope lies in the investigation by a select committee of railway construction; but at the present rate of progress the year will have passed, together with the appropriation, before the committee reports. This policy of laissez-faire is to be deplored with the railways in their present financial state, and Mr Coates’s emphatic declaration that the House should review the position of railway expenditure at once demands the attention of the Government.

Half a Loaf.

The Commonwealth Arbitration Court

last week established an important principle when, acting upon an

application by tire railways commissioners of the four eastern States, Victoria, New South Wales, South Australia, and Tasmania, it set aside all railways awards covered by the application. The court did not extend action to the suspension of the awards in so far as they relate to the ba sic wage and standard hours, and thus much of the relief which the railways commissioners sought has been denied them; but the decision is nevertheless very significant. The position, as outlined by the applicants, was that the. railways could not be carried on unless relief was obtained. The Victorian commission’s chairman stated emphatically: “The Government of Victoria, in plain language, is broke.” There is little satisfaction for anybody in the reducing of wages, but there would be less cause for satisfaction for railway workers in the present case if the operation of the railways had to be abandoned. In giving the decision of the court, Chief Judge Detheridge summed up the position succinctly when he stated: “In a time of crisis necessity may present a hard choice to employees, either to give up promptly some award conditions or to see the industry collapse, with consequent greater loss to them and greater injury to the public interest.” The railway unions are reported to be contemplating an appeal from the court’s decision, but they will have little sympathy in their resistance to a decree made to fit the urgency of the case. It is to be hoped that ‘they will realise that it is better to work on a reduced scale than to lose their work altogether that half a loaf is better than no bread. If the court’s decision in this case is upheld, it may be assumed that other industries will make similar applications for relief. Suspension of awards during the next eighteen months or so during which the Australian crisis must continue would go far towards helping the Commonwealth out of her present difficulties, and it is for the unions to appreciate the fact that drastic remedies such as this are required.

The By-elections.

The by-elections in the VVaipawa and \\ estern Maori constitu-

encies, which resulted in a win for the United

Party and Reform Party respectively, hardly justify the remarks of the Acting Prime Minister. We have never objected to party leaders making extravagant claims concerning national feeling as reflected in a simile byelection; indeed, party leaders have*a sort of poetic license to read whatever they like into the results of such contests. Recognition of their right to comment does not, however, remove the right of more impartial judges to remark upon the significance or otherwise of the results. In the present instance neither by-election has much significance. That the Waipawa victory for the Government is of any great consequence, and is, as Mr Ransom professes to believe, an indication “that the Government is winning the increased confidence of the man on the land ” must be denied. The fanning community in New Zealand has given unmistakable proofs in recent months that it has a very marked distrust of the Government’s policy, and Ransom has shown himself apparently unable to grasp the vital necessity of decreased production costs if the farmer is to come through the present depression. As to the Government’s bold policy,” of which Mr Ransom makes mention, there is nothing particularly admirable in bumping up taxation, even if it takes courage of a sort, any more than there is anything very praiseworthy in inserting the head into the jaws of a lion—and that, also, is a bold policy. Mr Jull is well known in his electorate, and has experence of public activities. He will be a valuable member of the House, but his election no more reflects public opinion generally than does the election of Mr Te Toino as the Western Maori representative.

Brazil.

It is difficult, at this distance from the

the South Americas, not to derive a flicker of amusement from the re-

volutionary activities that are so constantly being reported in the LatinAmerican republics. These revolutions, which to New Zealanders have something of the flavour of opera bouffe, in South America itself are serious matters, threatening the commercial life of the community, seriously retarding progress, and causing a great loss of life. In the recent revolution in Argentina, which occurred almost over-night and without seriously affecting trade

relations}- one thousand persons, many of them innocent of complicity, were reported to have been killed. The outbreak in Brazil promises to develop into a national disaster, and may precipitate that unhappy country into the midst of sanguinary conflict. Already the rebels have more than 80,000 insurgents in the fiehtj the Government is mobilising an army of 460,000, and clashes have occurred. The causes of unrest are difficult to determine. The United States of Brazil has always been somewhat of a misnomer for a country in which some State governors are virtual dictators, and political feeling, which always runs high, was roused to fever pitch by the assassination of the much-respected Liberal governor of Parahyba by a Republican. Economic depression is proibably mainly responsible for the revolt, for Brazil, despite its great potential •wealth, has been affected by the slump in coffee prices and in other commodities. Considerable British money is invested in the republic, and negotiations have recently been under way for an extension of trade with the United Kingdom. It is to be feared that if the revolution develops as it is threatening to do, it ■will have an unfortunate and lasting effect upon Brazilian relations with the outside world; but hot-blooded South Americans will not worry overmuch cbout this until it is too late.

Banking Returns.

The banking returns for the September

quarter reveal a position as satisfactory as could be expected. The banks

have a supply of funds which is considered to be sufficient to meet demands, deposits being in excess of advances by £43,538, as compared with an excess of advances of £315,124 for the previous quarter year. Fixed deposits have increased, though free deposits have declined considerably, with the result that total deposits are less by nearly two millions. This, however, is not necessarily a cause for concern. For the : 'eptember quarter this year, as comp.niv I with that of 1929, the reduction

' > fit J deposits is found to be £3,165,124, , fixed deposits have increased by <>'• a million, and are 50 per cent. heav?r than four years ago, higher interest rates having encouraged this form of investment. In a comparison of advances and deposits in recent years it is found that surplus funds available in 1928 and 1929 have dwindled away, hut an excess of deposits remains, Whereas in 1926 and 1927 at this time advances were heavily in excess. Generally. speaking, the figures are reassuring. It is scarcely necessary to emphasise that a need for caution continues to exist, but with a heavy decline in exports it is gratifying to find funds so well maintained. The banks emphasise, however, that with the outlook for primary produce unfavourable, and low prices inevitable, only increased production can adjust conditions.