NEW ZEALAND’S PROBLEM

Taranaki Daily News, 23 October 1930, Page 11

NEW ZEALAND’S PROBLEM

TRADE DEPRESSION OPTIMISM OF THE MINISTER WHAT BANK RETURNS DISCLOSE. CHAMBERS OF COMMERCE VIEWS. By Telegraph.—Press Association. The Herimitage, October 22. The annual conference of the Associated Chambers of Commerce of New Zealand opened at the Hermitage, Mount Cook, to-day. Thirty-two delegates were present, representing 27 chambers. The conference was presided over by Mr. C. P. Agar ( Christchurch j, Officially opening the conference, the Hon. P. A. de la Perrelle (Minister of Internal Affairs) apologised for the absence of the Acting-Prime Minister, Mr. E. A. Ransom, and assured the conference that the Government would give very careful attention to remits which concerned the Government. He assured the conference that it was the 'earnest desire of the ' Government to co-op-erate with chambers of commerce and other organisations in any measures calculated to advance the prosperity of the country in any way. He was sure that the delegates ag r ced that, unsatisfactory as, the position might be in some respects, the returns of the., six. trading banks in New Zealand for the months of July, August and September showed that the financial position was sound and satisfactory, when taking into account the present world-wide depression and the decline in prices of the principal exports. The position, so far as the banking returns were an index, was not oiie that called for alarm. As the delegates were aware, the Government had met its own position by a drastic curtailment of expenditure and by the imposition bf ad'ditional taxation. The revenue fell £500,000 in the first half of the present financial year, but they had reduced expenditure by £600,000 for the same period as compared with the previous year. A certain amount of revenue Lad to be found each year, and, as fixation in the long run was borne by local production, it followed that if the. proportionate effect on industry could only be ameliorated by increased production ■ the amount required in taxation was then spread over a greater volume of production and the effects on the individual were less marked. >

The question arose how increased production could be brought about? One means of achieving this, was by directing consumption towards goods which New Zealand proditced. OPINIONS ON PREFERENCE. Touching on the desirability or otherwise of giving preference to New Zealand goods, the Minister said he felt that New Zealand was under no. particular obligation, to foreign countries, especially where those countries did not provide good markets for New Zealand produce. The time might not be far distant when there would require to be greater trade reciprocity between countries comprising the British Commonwealth and greater unity of action on the part of that Commonwealth as a whole in its competition with other producing countries.

The Minister said he was aware, that chambers of commerce were somewhat concerned in regard to the Board of Trade-Act. , The point of view of the chambers was appreciated by the Government, and it intended fully to consider the question before next session’s legislative programme was arranged. He would be pleased to give earnest attention j in. collaboration .with the Prime Minister and Sir Thomas Sidey, to the request that certain provisions of the Act be repealed and others modified. Mt. Agar delivered a lengthy presidential address, in the course of which he said that he believed it was maldistribution of gold, together with inflation ot the currency in some countries, that created the position,. The problem 'was an international one and could be solved only by a conference of those countries whose currency w-as based bn the gold standard.

. Mr. Agar dealt in detail with the position of farmers and went on to refer to the secondary and primary industries, stating that tariffs and protections must be considered from the point of 'view of the ability of the community as a whole to bear them rather than from the more popular viewpoint that the Dominion would like, its own secondary industries.

The speaker went on to refer to capital and labour, and concluded by stating that it was not to political action that they must look for the future, but to the efforts of individuals.

But, be sure you get Doan’s. 8