The Southland Times. PUBLISHED EVERY MORNING. “Luceo Non Uro.” MONDAY, NOVEMBER 4, 1935. SWEDEN’S EXPERIENCE

Southland Times, Issue 22729, 4 November 1935, Page 6

The Southland Times. PUBLISHED EVERY MORNING. “Luceo Non Uro.” MONDAY, NOVEMBER 4, 1935. SWEDEN’S EXPERIENCE

According to Mr Denham, Sweden by means of some system of guaranteed prices similar to that advocated by the New Zealand Labour Party, and changes in the monetary system, has solved the unemployment problem and most of the other ills besetting the country, but it is interesting that he should give figures to indicate this progress. He states that the unemployment has reached one per cent, of the population, roughly 62,000, and the vote for these is about £3,000,000 against an expenditure of about £4,000,000 in the previous year. He says that Sweden has balanced hex - Budget, but during the previous three or four years the Budget had been “balanced” with additional loans for a big public works programme, designed to give work to 70,000 who otherwise would be unemployed. Does Mr Denham mean that Sweden is no longer’ raising loans? Sweden’s position is not altogether comparable to New Zealand’s, since Sweden has big secondary industries which have not suffered trade reductions like those which have attacked the economic strength of agricultural countries, and it is noticeable that the value of the exports of several large manufacturing industries have not shown any marked falling off at all during the depression. In 1932 there was no marked falling off in her total production, the figures being: 1930, 4939 million kroner; 1931, 4335 million kroner; 1932, 4331 million kroner, a reduction of 600 million or 12J per cent, in the three years. In 1932 the trade balance was no less favourable than it was in 1929, and making allowance for the strong position she held in the early post-war period, the financing of a big public works programme was neither difficult nor dangerous. Then it must be remembered that all the European countries felt the economic depression before New Zealand and their opportunities for recovery are further ahead than ours, owing to the persistent lag of agricultural prices which affects agricultural countries to an extent not marked in industrial regions. The unemployment figures are also interesting. They were given as follows (as on June 30 of each year): 1932, 79,338; 1933, 89,485; 1934, 57,641. And Mr Denham now gives them at about one per cent., or about 62,000.