PRIMARY PRODUCTS AND ECONOMICS.

Putaruru Press, Volume V, Issue 175, 10 March 1927, Page 4

PRIMARY PRODUCTS AND ECONOMICS.

At a time when it is easier to be gloomy than to be cheerful over the trade prospects of the Dominion, the optimism of Mr. L. B. Beale, H.M. Ih'ade Commissioner, in his report to the Board of Trade, deserves and will receive a general welcome. Although it is part of his duty to consider the psychology of business and trade, and to make the most of anything that may encourage cheerfulness, it is his first duty to be faithful to facts. We may accordingly accept as a careful and dispassionate observer’s real opinion, and not as the smooth words of a mere well-wisher of the Dominion, his statement that the economic position is being “ energetically and intelligently met,” that there are many evidences of the primary producers’ determination to increase by improved methods, and that “ the general economic position of the Dominion may he correctly described as in a thoroughly sound state.” A good many people hold another opinion but it is probably true that, as the Commissioner suggests, the pessimists one meets are pessimists because they had come to believe that fine economic weather would never cease. For a great many years New Zealand has had a glorious time. In the past twenty years the blue sky of our prosperity has been overclouded only three times—the present mild depression being the third—and each time the shadow has passed away fairly soon. One may hope that the current depression will pass away during the present year, but this will not happen without some effort by the Dominion. The depression of 1907-8 was almost purely financial, and was of very little account from the economic point of viewt, The slump of six years ago was a visitation upon the Dominion for its economy sins—its wasteful and extrat consumption and its neglect .3 think that there might be a sharp fall in the value of our primary pro-" ducts. The present depression is the result of a re-commission of these sins, and the one consoling fact Is that most people realise this as they did not in 1921. They realise that a sharp economic reverse is not a disaster that may occur once in a generation, but a disaster that may occur at any time if no precautions are taken against it. The need for precautions. is plainly stated by Mr. Beale even in his encouraging report.

The time, he says, “ seems to have arrived when the Dominion must face greater competition than hitherto in the products which have made her famous and prosperous, and constituted her only substantial source of revenue.” Hitherto competition has not greatly troubled New Zealand; our meat and wool and dairy pro- * duce have been saleable at remuner- ' ative prices. But we cannot feel sure that the normal level of prices over a period of years will remain high enough to enable our country to maintain its scale of consumption without a large increase in production. This is so grave a consideration ';hat, as we have been urging for •ears, the Government should make everything subordinate to the development and expansion of our 'rimary industries. But the Government does not yet realise its duty in his matter. It is as busy as a bee ever comparatively trifling things, md on the economic side it seems to bo thinking more of the secondary industries than of the great basic ! primary industry without which the : secondary industries and everything ( else would collapse like a house of cards. Its policy should be directed j chiefly and constantly towards making easier and more profitable the production of wheat and wool and butter and cheese, and unless such a policy is taken up anil pursued intently for a good many years New Zealand will cease to prosper.— ] Christchurch Press. >