WORLD IN THE SLUMP

Taranaki Daily News, 14 February 1933, Page 10

WORLD IN THE SLUMP

AMERICA HIT HARD. LOOKING TO BRITAIN. “When I left Wellington all the world seemed to be clouded over, but by the time I reached the United States I was conscious that I had run into a blizzard travelling at the rate of 200 miles an hour,” said Mr. J. M. Ilott, who has just returned from a world tour, when addressing the Wellington Rotary.., Club on Monday. “In England it se,emed to have calmed down considerably; but I found it blowing vigorously on the Continent - Coming back to New Zealand I find that it is- going at the rate of from five to six hundred miles an hour." When Mr. Ilott had visited the United States in 1928 he found it a cheerful optimistic country which had discovered the key to economic success. That was based on mass production, high wages, and the fostering of a greatforeign trade. When he was there a few months ago all the optimism had disappeared, and at the end of May and the first half of June he encountered the suicide period, following a ghastly time, when all .values disappeared, almost in a night It was a tom, hopeless, distracted America that was facing this crisis, one which many were facing bravely, What was worse than the loss of value, was the loss of faith and the philosophy of life which they had built up during the good years. FUTURE FOR AMERICA. Yet America, said Mr. Ilott, would create new ideals and was assured of a great future. She had 6 per cent of the world’s population, and it consumed 93 per cent of what it produced. All together some 400 banks had closed their doors in the slump. Twenty-three banks in Chicago closed down in 23, days, but that must not be taken in the sense of their being parallel to New Zealand banks. These were private banks, with no branches. Out of six hanks in Toledo five had failed. An indication of the way in which values receded could be gained from the index of stock prices. Stocks quoted at 184 dollars in 1930, receded to 124 dollars in 1931, and by May, 1932, had dropped to 42 dollars. The unemployment figures when Mr. Ilott was in the United States ranged from 12 to 15 millions, or 34 per cent of the male population. LONDON THE GAYEST CITY. “London to-day is the gayest city in the world,” said Mr. Hott “It is quietly and steadily going on as if there were nd depression. My American friend said to me that he had experienced nothing so refreshing as London—and the English character is one of the greatest assets we possess. I was there when Mr. Downie Stewart was in London, and so great an impression did he make with people who count that they were hoping that he would be sent back for the international financial conference. ■ Sir Thomas Wilford, too, has made a name for himself as High Commissioner, and deserves all credit for the job he has dona so well for New Zealand.” “Paris is a morgue, Berlin a mausoleum,” continued Mr. Ilott. ‘.‘But if. a stranger were to drop into. London lie would not know there was anything wrong with the world. Of course the state of unemployment in the midlands was ghastly, and it was terrible to . visit the Clyde and see no ships on -the stacks; but still in the opinion of some. Of the biggest men at Home England would recover before any other nation, and would be greater in the future than she has ever been in the past.” ■HITLER’S OBJECTIVE. Mr. Ilott said that in 1929 Germany imported 130,000 tons of butter from Denmark, but last year she had only imported 50,000 tons from that country. From what he could gather the policy of Hitler seemed to be one of Germany for the Germans, and his main political objective was to get Germany free from the thraldom of interest. In Denmark 30 per cent, of the population was unemployed, and Czechoslovakia was also feeling the pinch of unemployment, though her low cost of living enabled her to hold out better. In Austria things were so bad that the first thing one was told was not to mention the depression. In Belgium one saw the boats tied up everywhere, and the roads were the worst in the world. In France it was considered quite the thing to beat the income tax if one was able to do so. For that reason one found many Frenchmen who insisted upon paying cash for everything, even in big transactions; and as they kept no books and gave no cheques their financial affairs were difficult to trace by the tax collectors. OPTIMISTIC AUSTRALIA. Spain had not escaped the world depression. In that country the shops were closed between noon and 4 p.m. Not even Communism could prevent unemployment Italy had its unemployment problem, but had not suffered quite so much as other nations, as wages were low. and the costs of living was not high- . t “Australia to-day is the most optimistic country in the world,” said Mr. Ilott “A little while ago a friend said to me, ‘You New Zealanders were telling us that every tiling was upside, down with us, and now you, who haven’t had a Tang to alter things overnight, are talking as though the end of the world has come.’ It now looks as though public confidence is returning and the downward movement arrested. Internal adjustments have gone far toward restoring a position upon which business may resume its earlier activities, and so provide work for the unemployed. “Everyone looks to England for a lead, said Mr. Ilott “Communism is declining, contrary to all expectations. Hardship has led people to see that the way of salvation lies in moderation, not in extremes: If. war debts were cancelled and tariffs reduced business could be resumed between England and the Continent”