THE OUTLOOK.

Timaru Herald, Volume XCVIII, Issue 18084, 21 June 1924, Page 9

THE OUTLOOK.

FARMING AND TRADE PROSPECTS.

THROUGH THE EYES OF THE

BANKER.

(Special to the “Herald.’-’) 'WELLLNGTOiN, dime 20

“On the whole, ’’ declared Mr .William Watson (acting-chairman of directors) at the annual meeting of proprietors of the Bank of New. Zealand, held to-day, “I believe we may regard the immediate outlook witn equanimity. Prices for some of our most important products may decline, although during the coming season there should still be a considerable balance of trade in our favour. Many of our producers are carrying on under adverse conditions, but their competitors abroad are having trouble also. It must not be forgotten that the great majority of our settlers are iii fan circumstances, and quite able to withstand a fall in value of their assets and reduction in income. Had economy been practised during the years when phenomenal. prices were received for our products, there would be less grumbling to-day over the burden ,of taxation and the difficulty of getting an adequate return on capital. We must look, forward to a gradual deflation of land values as the cure for the worst of the evils from which we are at. present suffering. Stabilisation at present values is out of the question.” “I would urge one and all,” Mr Watson concluded, “not to lose sight of the very important fact that economy in its wider sense is absolutely necessary to the welfare and prosperity of this country. We have in New Zealand most things suitable to healthy life, but, unless our exports can be produced as cheaply as those of other countries, and unless we avoid excess of luxury in our imports, it stands to reason that, considering our heavy obligations, ultimate prosnerity will not be ours. No one should idle or go slow in his working years, and the fertility of our lands should be carefully maintained. We have one of the finest countries in the world: let us keep it so by showing example to those, who will inherit it after us.