TO-DAY’S CEREMONIES.

Pahiatua Herald, Volume XLI, Issue 12454, 21 September 1933, Page 6

TO-DAY’S CEREMONIES.

SECOND EDITION

OPENING OF PARLIAMENT. THE GOVERNOR-GENEBALS SPEECH. (B v Tele gia p h.) WEIIINGtON, This Pay. Parliament was opened this afternoon with the' ciistbmary ceremonies. His Excellency (Lord Bledisloe) delivered the following. Speech Honourable Gentlemen of the Legislative Council and Members of the House of Representatives. VISIT TO THE ISLANDS. Last .April the opportunity was afforded me of visiting the Mandated Territory of Western Samoa and the Islands of Rarotonga through the accommodation provided on board H.M.S. Diomede in the course of her annual cruise in the Pacific Ocean and but for the necessity of economy in the expenditure of fuel I would have extended my official tour to Niue and other islands of the Cook Group. I was accorded everywhere a most loyal and friendly welcome. I was particularly gratified to note the absence of all evidence of serious privation in these- islands in spite of the inevitable setback in their economic prosperity and the watchful care for their moral and material welfare exercised by their respective administrations. The visits which I paid in passing to Nukualofa and Pago Pago enabled me to accept the courteous hospitality of Her Majesty the Queen of Tonga and the Governor of American Samoa and to testify to them and to the inhabitants of their respective territories the friendly attitude towards them of this dominion. I trust that these visits may prove to have assisted in cementing happy and sympathetic relations between those who have the responsibility of native .administration in the Pacific. WOT?LD C ONFERENCE.

The World Monetary and Economic Coiiferem ■ * which assembled in London last June was convened by the League of Nations, with the object of securing international co-operation in devising means of solving problems created by the economic depression. It was regarded by my advisers as of outstanding importance to. New Zealand, particularly as one of its contemplated results was the raising of price-levels of primary products. The Dominion was accordingly represented at the Conference by the Prime Minister and the Minister of industries and Commerce, ££ is a matter for regret that the Conference has so far been unable to reach any final agreement. Some progress was. - however, made in exploring economic problems and in promoting among the nations of the world mutual understanding upon wTich a return to general prosperity so- largely depends. My Ministers who- attended the Conference were afforded oppor•tunitdes for importfcuit discussions

with representatives of His Government in the United Kingdom and of commercial and agricultural interests in Great Britain on matters vitally affecting trade between the two countries. My Government confidently hope that beneficial results will accrue from these discussions and that they will eventuate in a better realisation o: our common problems. AGREEMENT WITH AUSTRALIA. During the parliamentary recess the Minister for Trade and Customs of His Majesty's Government in the Commonwealth of Australia visited New Zealand in order to discuss with my Ministers the question of commercial relations between the two Dominions. An agreement has been reached and will be submitted for your ratification at an early date. TRADE WITH CANADA. My advisers have been engaged in discussions with His Majesty’s Government in Canada regarding the existing trade agreement which came into effect on the 24th May.last year. This agreement,, which was originally intended to- remain in. force for a period of one year, has been extended until 24th November next. AUSTRALIAN SQUADRON. Jt has afforded me very great pleasure to extend a cordial welcome on behalf of the people of New Zealand to the ships of the Australian squadron which are now in Dominion waters. Their visit will serve to" strengthen still further the friendly relationship between the Commonwealth and New Zealand. THE MARKETS. Mr Speaker and Members of the House of Representatives. The trend of the world's markets has remained uncertain during, the past twelve months, and a further fail during this period in the value of several of the Dominion’s primary products accentuated the difficulties which have continuously confronted my advisers during the last three years, although the production ol the Dominion has materially increased. Many of these difficulties still exist. The bulk of the exports of New Zealand are consigned to Great Britain. The Dominion iy consequently very largely dependent upon economic conditions in the t nited Kingdom. IMPROVEMENT IX BRICKS. The people of all classes in New Zealand, while facing their difficulties with determination and courage, have been anxiously watching for that improvement in prices which it is hoped will mark the end of the economic depression so far as it affects this Dominion, but until recent months there has been little indication of the realisation of these hopes. It became imperative early hi the year that some action should be taken to avoid serious disorganisa tion in our ha.sic industries. My advisers, therefore, after carefully considering all remedial measures, decided to depreciate tin currency of the Dominion in order to assist *n bridging the gap between farming

i costs and prices. The legislation which way passed in pursuance of this decision during last session is deemed to have afforded timely relief during; the further depreciation in value of primary products which continued until April last. Since then prices have tended to rise. Although the movement is slow my Ministers have reason, to hope that the increase will be permanent and beneficial effects are already becoming evident. Recognising that falling prices automatically increase the lelative burden of all fixed charges and that relief in this direction would be a powerful aid to economic recovery my Ministers have devoted careful attention to the question of reducing current rates of interest on an equitable basis. INTEREST RATES. Conversion of the interest rate of the internal Public Debt of the Dominion to 4 per cent, was undertaken and the operation was an outstanding success, thanks to the patriotic response made to the Government's appeal. At the same time legislation was passed providing for a reduction by one fifth in the interest on. securities issued by local authorities buc with a provision; that such interest w.a«s not to be reduced below 4A per cent. Arrangements* were also made for a reduction, in rates of intero t on bank overdrafts and deposits at, a on mortgages. There are definite indications of ihe success of the plan for establishing long-term interest rates at lower levels- and my Ministers feel that the reduction is- now permitting the entire field of investment with consequent benefit to the Dominion as a whole. THE BUDGET BALANCED. Under stress of economic conditions the Budget for the* last financial year contemplated a substantial deficit hut as a result of progressive savings in expenditure and of an unexpended excess of revenue over the estimated receipts the financial year closed with a small surplus. The conditions to be faced for the current year are nevertheless still serious and the problem of maintaining the budgetary position within safe limits, pending some measure of economic recovery, continues to receive the earnest attention of my advisers. The Speech also dealt with the unemployment problem ('which was likely to remain difficult until there was a substantial improvement in the price of primary products) ; the various schemes of unemployment relief ; steady progress in placing new settlers on Crown Lands; amalgamation of various branches of Native Department; development of native lands; proposed legislation for ;ho establishment of a Central Reserve Bank. The Speech concluded: ‘‘Measures will also he laid before- you relating to coinage and the amendment of the law of* libel, weights and measures, post and telegraph, immigration restriction, customs (Vis-a-vis Australia), remedies for livestock diseases, the reduction of interest oh and the conversion of loans made to local authorities, also for the consolidation of the Mortgagors Relief Act. and the Municipal Corporation Act and the statutes | amending the same. T commend till consideration and pray that your deliberations may ho guided by Divi no P ro\ idenoc.’ ’