PESSIMISM DECRIED.

Timaru Herald, Volume CXXXIV, Issue 18847, 9 April 1931, Page 3

PESSIMISM DECRIED.

“DEPRESSION WILL NOT LAST.” “In reporting upon the activities of the Association for the past year, your executive regrets that it is not in a position to state that progress has been made.” states the annual report of the Wanganui Employers’ Association. “It is a matter of common knowledge that a world wide economic depresion has adversely affected trade and industry generally, and that condition has naturally affected members of the Association, in common with other employers. So much has appeared in the public press of late concerning this depression, that your executive feels that it is unnecessary to do more than make passing reference to it. How long the depression will last is a matter of conjecture, but certain it is, that the prevailing pessimism will not facilitate emergence from it. Admittedly, money is scarce, but unfortunately its scarceness is being accentuated by the sorry reports of unemployment and the like. These reports may serve a useful purpose in instilling into the minds of the people the need for economy, but the effect is to also make the people “panicky,” with the result that, instead of circulating their money, they tie it up for what they regard as safety. “Your Executive is inclined to agree with the Rt. Hon. Mr McKenna, who gave utterance to the view that the depression would pass quicker if the people would spend rather than save. Economy should be practised in respect to purchases from outside of the Dominion. So long as imports are kept at a minimum, the free spending of money on Dominion manufactures will prove a great blessing, but whilst the Dominion continues to lavish expenditure upon overseas manufactures, it must of necessity impoverish itself. Probably the greatest consolation of all at the present moment is the realisation —selfish perhaps—that however bad things may be in the Dominion, they are nevertheless infinitely i better here than in most other places. “The Government has announced increased postal and telegraphic charges of a rather drastic nature. Your executive is inclined to think that the result of the new charges will be a considerable shrinkage in business, and that the expected additional revenue will not eventuate. However, that remains to be seen. Certain it is, that the increased charges will be an increased burden upon the business community, and it is very questionable whether or not direct taxation would J not have been the better method of , obtaining revenue. Admittedly, the [ Government is obliged to balance its . Budget, but there will no doubt be a . conflict of opinion upon the wisdom or . otherwise of the methods chosen to do