The Daily News TUESDAY, JUNE 23, 1925. A GREAT INHERITANCE.

Taranaki Daily News, 23 June 1925, Page 4

The Daily News TUESDAY, JUNE 23, 1925. A GREAT INHERITANCE.

If there is one portion of the an-

nual address of the chairman of the Bank of /New Zealand that attracts more attention than another, it is his views concerning the Dominion’s outlook. There have been occasions when the chairman for the time being has been optimistic; also times when a note closely verging on pessimism has been struck, but in the last decade there has never been absent a note of warning against unwise expenditure, while the need for strict economy has always been strongly urged. This year, Sir George Elliott’s forecast, while reiterating the “unpalatable” advice to the people of this country to recognise the ■need for economy and to give practical evidence of their intention to profit by the advice, it is pleasing to note that, on the whole, the conditions prevailing at the present time are such as to inspire confidence in the

future. “We are,’’ said Sir George, “gradually settling down to the even tenor of our ways; bit by bit we are getting back to conditions which prevailed prior to 1914. New Zealanders possess a great inheritance. We have many valuable assets, and if, minding our own business, we exercise ordinary wisdom in the general management of our affairs, the future welfare of our country is assured.” Whether or not the saving clause as to “minding our own affairs” refers to the desirability for avoiding taking part in European entanglements, or abstaining from industrial upheavals is not clear, but the “if” is very much like the skeleton at a feast—a reminder that things we would rather did not happen are still within the possibilities of the future. There can be no doubt whatever as to the greatness of the inheritance into which the people have entered, yet whether that precious gift will be cared for, improved or depreciated, can only be disclosed in the future. Wisely, we think, Sir George Elliott pointed out that the margin of nearly five millions sterling in favour of exports as against imports is obviously inadequate to meet the annual amount required to pay interest on loans raised by the

Government and local authorities outside the Dominion. The significance of this statement is emphasised by the fact that even if prices for produce had been maintained, and all goods in store had been shipped, though the position would have been improved, the final balance would still have been insufficient to justify an optimistic view at the present moment. The moral to be deduced is that unless the -volume of produce is appreciably enlarged and the rate of expenditure materially reduced the time will speedily arrive when capital will have to be used for requirements that should rightly be met out of revenue, and capital used in that way must inevitably retard development, besides having an adverse effect on making provision for lean times. In face of the fact that imports last year amounted to elose upon fifty millions sterling, Sir George Elliott was perfectly justified in his view that, without the slightest doubt, “the people of New Zealand are spending too much on imported luxuries,” and it is time to call a halt to consider the position. As might have been expected, a portion of the address was devoted to a review of the produce-marketing question. The two special features alluded to were: (1) That anything in the nature of a trust or pool in connection with the marketing of our produce met with disfavour at Home; (2) that any attempt to control the markets

there either by price fixing or controling the quantity placed on the market would lead to the idea gaining ground that the producers of the Dominion intended to exploit the Home consumers to the extent of the last possible penny for our wares, the people there might turn their attention to other lands for their requirements. Although that may be an extreme view, it conveys a warning that should be heeded, especially as there are indications that other countries! are rapidly increasing their dairy products and improving the quality. Happily at present New Zealand and its people are held in high esteem in the Old Country, and our policy should be to cultivate the maintenance of that good opinion by all means in our power, for that country is practically our only market, and will so remain if the right policy k adopted. There is a mutual interdependence in the matter of exchange of goods that ought to be the first consideration on both sides, as it is hoped will be the case. All should agree with Sir George Elliott’s statement: “I? we work and strive with a duo regard to the unity and wellbeing of the varied sections of our mighty Empire, we in New Zealand must, in the general prosperity of a united people, reap an abundant harvest.”