CALL FOR CONFIDENCE

Timaru Herald, Volume CXXV, Issue 18598, 20 June 1930, Page 12

CALL FOR CONFIDENCE

NO CAUSE FOR PESIMISM. PAST DEPRESSIONS RECALLED. British people the world over have I ever been able to look adversity in i the face, and in the darkest hour of , economic upheavals, it is traditional of j British character, that they have been able to smile in the face of trouble. Here in New Zealand, the pioneers, | who laid the foundations of the vast . development of their country, came 1 face to face with difficulties of great magnitude, but instead of wilting they stiffened their backs, and courageous- | ly set themselves to meet the :mpendi ing economic blow. | “Slumps and depressions come : : n 1 cycles . We have had them time and again in this young country, and ha-'e come through victoriously with our flag unfurled at the masthead,” said a well-known economist on the occasion of the 1921 depression. “We are told when each succeeding economic upheaval arrives that it is ; ic vorst i yet, but such references are merely tne j vapourings of the pessimist, and can j carry no weight in the general measure of things economic. We can crJy judge of a slump or a depression as it affects ruling conditions, and to compare one depression with another l leads to nowhere so to speak. All de- ! pressions take their toll, and it is genI erally the improvident, who feel them most. From this quarter too comes the greatest number ol complaints and

the loudest wail of pessimism. The people who follow the lead set by the early pioneers meet their Difficulties in an optimistic spirit, and the more vvs can foster this spirit the better will our little nation be able to overcome adversity and renew the progressive march of economic stability which has blazed the path of unbounded prosperity in the Dominion for many years. Pessimism is like a cancerous sore, eating at the very vitals of our social system, and what is needed is the radium of optimism to destroy the wailing germ which has such a destructive effect upon a community when times are hard, and when people should be remembering that it is the will to surmount difficulties that has made the British Nation what it is the world over.” Having in mind these wonderful words a “Herald” representative waited upon several prominent business gentlemen with a view to securing from them their opinions on existing conditions. The “Herald” editorially having given the public a lead in the matter of confidence in the future, it was only to be expected that business men should endorse the doctrine propounded in the “Herald” on Tuesday morning. Quite a number were interviewed, and without exception thw.v struck a note of optimism in the future. For various reasons many did not choose to make statements foi publication, but their views nevertheless confirm the tone o r optimism struck by the others. New Zealand is Fortunate. Mr A. M. H. Shirtcliff, general manager of the Canterbury Farmers Cooperative Association, said: “Undoubtedly there is a world-wide depression ruling at this tune, and it would be foolish to negleA U* realise its effect

upon the world of commerce generally, and as it affects New Zealand which is a primary producing country almost wholly dependent upon earnings from the land to maintain its welfare. Naturally we are dependent upon outside markets for this country's prosperity, and looking the matter straight in the face, Ave must realise a readjustment of the value of New Zealand's products became necessary in view of the diminished buying power of Great Britain and other countries. As a setoff to this I would say it is no use sitting down and wringing our hands in a state of the greatest pessimism, but rather that we should determine to see the matter through by a sane adjustment of the Dominion’s standard of living in regard to luxuries, and the determination, wherever possible. to do our business with Great Britain both in exporting and importing, from which country the greatest bulk of New Zealand’s income is derived. “It is necessary also to see that » fair balance of trade is maintained.’' said Mr Shirtcliff, “and to accomplish this at the present' time it is the responsibility of all concerned to see that importations are for necessaries to meet the demands of the country in carrying along. I consider New Zealand is fortunate in her position today as compared with conditions ruling in many other countries, and feel that if everyone pulls their full weight of endeavour. the Dominion will reasonably soon rise above its difficulties. It is certainly a time for the greatest care to be exercised together with the will to work, and I feel sure that if each of us does his bit in whatever the calling, and looks for more, there will be no time for undue pessimism and our minds will ceaT* to worry

unnecessarily over the present bogey and thus prevent it enveloping us. There are to-day, visible signs of improvement for our products and I venture the opinion that the lowest range of prices has been experienced. The Shoulder to the Wheel. “If the people will only realise that in times such as these people should not indulge in wasteful expenditure,” said Mi- P. B. Foote, president of the Timrau Chamber of Commerce. “if they learn to eliminate luxuries they will hasten the return to normal conditions even if these are at a lower standard than we have been accustomed to. Normal conditions are merely a matter of time but it will be delayed if undue pessimism is allowed influence everybody’s actions. New Zealand has passed through big slumpo in the past, and it will pass through them again in the future, and their deterrent feature seems to be a necessary for the economic body politic so to speak. They bring in their train their own corrective. The present slump appears to differ a good deal in comparison with the 1921 slump in that it looks as if we are settling down to a lower basis of prices if not pre war prices. The corrective is production and still more production, and ' so far as the working people are con-. cerned, a fair day’s work for a fair day’s pay. If everybody will work in that basis the return to normal will be much more rapid than otherwise. Continuing Mr Foote said: “It must not be forgotten that this is not the only slump we have had and it won’t be the last. There is no use shutting our eyes to the fact that times are difficult, and in these difficult times it behoves everybody to put then shoulder to the wheel and help to $

create better conditions, instead of standing by and groaning about it. This will not get us anywhere. Our motto should be to leave no stone unturned in the direction of bringing the country to a realisation of the fact that no great achievement can be hoped for in the absence of a spirit of optimism and a mutual will to surmount the trials which the present depression imposes upon us.” More Careful Attention. “Candidly we have not experienced it,” was the reply of Mr B. L. Blodorn when questioned as to the present alleged slackness of trade. “Trading conditions are not easy and we do not attempt to disguise this fact. We find that, the general buying public are making their purchases with greater care, paying closer attention to necessities and least of all to luxuries. With producers receiving much lower prices lor their products and the consequent decreased spending power of this branch of the community, it is natural perhaps to expect decreased turnover in the retail trades. Our personal experience does not bear this out and we have it from many of our business friends, that they too find, that turnover is being maintained above a good average. Indeed we find it difficult to discover real reasons for pessimism in the present situation. Our country is sounder and in better form to meet difficult times than during at least two other periods in the last ten years. We are told that caution and economy are necessary at this time but how much increased distress would be caused were we all to cut our expenditure substantially. It would appear to us that wise discretion is all that is necessary to enable us to recover our normal balance. An extract from our

London buyers letter of 16th May appears to be worth repeating. It was very gratifying this week to see the New Zealand 51 million loan close, being over-subscribed in 3 A hours, despite the combined influence of the present New York position and 50 per cent, to 80 per cent, of several other recent issues being left with the Underwriters.”