THE DEPRESSION

Poverty Bay Herald, Volume LIX, Issue 17950, 30 November 1932, Page 5

THE DEPRESSION

RECOVERY IN BRITAIN MANY CHECKS IN CANADA SOME IIOPIFUL SIGN’S Progress inward recovery has definitely been greater and more substantial in Great. Britain than in the United States and Canada, is the opinion of a New; Zealander who returned by the Aoiengi on .Monday. '1 here is not only ill America more visible evidence ol the persistence •'!' depression: the contrast is revealed ;n the lethargy and uncertainly which are still characteristic ol tin outlook in America, whereas sentiment in Britain has become resolute if not buoyant. A sojourn in England this year has been especially interesting, as it permitted close observation ol the gradual revival of the spirit of confidence which has been so heavily oppressed by the events of the last three, years. An eminent authority in New York lias recently declared that the economic tide turned in the United States in dune and has presented substantial reasons for this conclusion. They arc, however, to ho found in an analytical examination ol technical condition's, the significance ol which is not generally appreciated. Recovery in Britain dates from the announcement of the, war loan conversion scheme, an event that had a dramatic effect upon public opinion, and when progress has been sufficient to permit historical retrosnect it will probably be round that the flow of the tide has been stronger and fuller in Britain than in any other country. ’Die forces of adversity have not yet been overcome, but as the’ year advanced thfere were definite manifestations of a more cheerful and confident outlook. Salutary influences are at work in the United States and Canada, nut they are not flowing so near the surface. SITUATION COMPLICATED Canada, indeed, appeared to be lielu more firmly in the grip of depression than the United Stales. This was not remarkable, lor. Canada had suffered very severely from low prices for her primary produce, and recovery has been repeatedly cheeked by sucli adverse experiences as the reactions upon the maiketing of her wheat of recent fluctuations in sterling exchange. The . economic situation of Canada, is complicated' by her dependence upon both British and American markets, with the result that the effects of any widening of the disparity between sterling and the United States dollar are multiplied to her disadvantage. The traveller abroad is constantly confronted by evidence of the ravages of economic convulsion. Vet the fact remains that the stagnation of industry and "'ommeree is relative rather than absolute. Low prices have undoubtedly stimulated consumption, especially of foodstuffs and rhetorical descriptions of vast accumulations of wasting commodities tend to be misleading. Inquiries in business circles in various cities generally elicited information of gradual expansion in trades and industry. The prospects of a return to normal animation are, unfortunately, still clouded bv the presence of difficulties that may be only slowly and painfully resolved', especially as so many of them arise from the obstinacy with which political prejudices are opposed to economic realities. 'Another factor that delays recovery is the hesitation ami uncertainty created by the. persistent advocacy of experi ments offered for the removal of obstty cles which experience will prove mustbo laboriously surmounted. FACING Ti l Kill DIFFICU UTILS Nevertheless, in spite of the signs of confusion, perplexity and distress, the strongest impression of conditions in Britain, Canada and the United States is that influences conducive, to progressive recovery ar' gaining strength, and that vigorous and resoureeiul people arenow confronting their difficulties with more confident determination. The critical development of the war debts question again threatens to undermine confidence, but there will be strong pressure from within the 1 idled 'States fo persuade the Government to modify its present attitude. Both the Presidential candidates made emphatic declarations against cancellation of war debts, but both were equally careful neither to exclude the possibility of revision nor to set any iniits upon the extent ol revision.