ECONOMIC RIDDLE

Southland Times, Issue 21178, 3 September 1930, Page 14

ECONOMIC RIDDLE

HOW TO SOLVE IT. UNFORTUNATE TREND. GOVERNOR’S VIEWS. A plea to the individual to assist in tiding his country over its present economic difficulties was made by his Excellency (Lord Bledisloe) at the opening of the Wellington Winter Show. His Excellency said that if business, like charity, began at home (using the latter word in its two-fold sense) it would be found that the cloud of depression which now hung over the countiy would more speedily disappear. His Excellency said he was glad to open the composite exhibition of the Wellington Show Association, partly because he admired the remarkable enterprise of the association since the first show was held sixteen years ago, and partly because he had the fullest sympathy with its main object, which he understood to be the development and maintenance of a sympathetic interest between town and country, and of the realization of the extent to which the prosperity of one depended upon that of the other. “Such an exhibition as this,” he said, “accentuates forcibly what was well described at the World’s Economic Conference, in 1927, as ‘the essential inter-dependence of agriculture, industry and commerce.’ It was, in fact, the one outstanding decision of that conference that the world’s prosperity, happiness and contentment could only be assured, not by keeping primary industries and rural activities in one watertight compartment, and urban manufactures and mining in another, but by blending, as far as possible, the activities and mutual sympathy of rural and urban communities. Value of Shows. “New Zealanders are obviously a gregarious people. Their instincts are certainly not monastic or exclusive. They enjoy meeting together in large numbers for various purposes, conspicuous amongst which are race meetings, football matches, cinema shows and exhibitions of produce. (Laughter.) These enterprises may not be perfect in every respect. Indeed, some would contend that, like the traditional curate’s egg, they are only good in parts. But all have their patrons and enthusiasts belonging to every class of society, and demonstrate a collective vitality and keenness, suggestive of vigorous national growth and great latent potentialities. The victory which sometimes occurs of an All Black football team, furnished by a community of one and a half millions, over one representative of a ponulation of 45 millions, is a feat of which New Zealand may- justly be proud. These agricultural and industrial shows similarly bear healthy comparison with undertakings of <• similar character in other parts of the world. “This is pre-eminently an industrial exhibition. and will no doubt be thronged by thousands of people intent on being informed or amused. Its main justification would apnear to lie in its educational and trade publicity value. The former must not be lost sight of amidst the side-shows and amusements, but every shrewd organiser realizes that, while promoting true knowledge, he must inevitably pander to human weakness in the form of mental relaxation. The pill of utility has to be buried in the jam of entertainment. The Individual Question. “But in these days when every patriotic citizen is something of an economist, such a show affords a 'grand opportunity for this

country to display her products to the best advantage, and, if quality and price are alike favourable, points the way to greater industrial prosperity and reduced unemployment.

“May I venture to hope that everyone who enters this exhibition will say to himself or herself, 'What can I do, in the light of what I see here, to tide my country oyer her present economic difficulties of which we are feeling the pinch in a greater or less degree’ ? “There was an adverse trade balance for the last financial year, imports having exceeded exports by roughly one million pounds. For the previous financial year there was a favourable trade balance of over 10 million pounds. The prices of all Nev; Zealand’s main exports during the last twelve months have fallen, wool by no less than 45 per cent.; hides, skins, and tallow by 28 per cent.; dairy produce by 16 per cent.; and the average of all exported commodities by 15 per cent. This fall in prices has not been balanced by increased production, except in the case of butter. Fortunately, prices are now slowly improving, but this process will not alone effect economic stability, unless there is a considerable reduction in imports, particularly from those countries which are not correspondingly large consumers of New Zealand produce. These imports consist largely of goods manufactured in this country, and which ought to be yielding greater employment of a reproductive character to our own local population, as, for instance, boots and shoes to the value of over one million pounds; apparel and ready-made clothing of two and a-quarter millions; and even woollen goods of a quarter of a million. All these show large increases on the two previous financial years. In the case of motor vehicles, which may be assembled but are not at present manufactured in this country, barely 20 per cent, come from England, which is far the best customer for New Zealand produce, and no less than 80 per cent, from North America. Many of the latter are admittedly of good construction and suitable to local requirements, but the fact that they represent three and a-half million pounds a year out of a total of four and a quarter millions will indicate the desirability of patronising, as far as possible, the Home product in the interests of international exchange and sound finance. Reliance’ On Each Other.

"It may be said that the quality, suitability, or durability of New Zealand or British goods is not all that can be desired. This contention may have been true a few years ago, but I doubt its accuracy now. In any case, when there is an insistent demand on the part of the public for goods of a specified description, manufacturers and tradesmen, in their own interests as well as those of the public, find it essential to comply with them. Let, business, like charity, begin at home, using the latter word in its two-fold sense, and you will find that the cloud of depression which now hangs over the country will more speedily disappear. Above all, do not let us leave the solution of this problem to successive Governments, but let us each, according to our own means and opportunity, do our utmost to solve it. Ever-increasing reliance upon Governments to remedy all economic ills is a modern tendency which we must all strenuously resist if we mean bur country in future to hold its own among the nations of the world. It is not the spirit which inspired the pioneers of a century ago. It is an unfortunate trend which is apt to grow upon a nation, numbing its individual enterprise, blinding its perspective, weakening its moral fibre, and leading it slowly but surely into an economic abyss.”