PRIME MINISTER’S FAITH.

Timaru Herald, Volume CXXXIV, Issue 18849, 11 April 1931, Page 8

PRIME MINISTER’S FAITH.

CHEER-UP WEEK MESSAGE, A special message of congratulation to the organisers of the Cheer-up Week, which opens in Auckland on Friday next, has been sent by the j Prime Minister (Rt. Hon. G. W. j Forbes). The letter commends the j organisers upon their initiative and j expresses the wish that the objects which they have .in view will be fully achieved, I “Along with the rest of the world, f the Dominion has been passing through a period of severe economic depression,” says the Prime Minister, j “World prices of raw materials have steadily fallen. Unemployment has been rife and the problem is still 1 seriously exercising the minds of the j Governments in the majority of coun- j tries. The purchasing power of most | sections of the community in almost l all countries has been seriously reduced. \ I “Such conditions engender a general lack of confidence, an unwholesome 1 distrust of business conditions, a fear that prices will fall still lower. New Zealand has been no exception as far as these conditions are concerned and the depressing effects on trade of the | falling price level which has been experienced until recently have been largely exaggerated and enhanced by the psychological effects of this factor, by a general lack of confidence. “Periods of depression have, however, been experienced before, both by New Zealand and by other parts of j the world, and these countries have emerged safely and successfully from them. Conditions in England and elsewhere now appear to be ripe for a revival of business on a saner and sounder basis. Prices for certain raw materials, as, for instance, dairy produce, and particularly wool, have 1 shown a marked improvement recently, and it now appears certain that the period of falling prices has been checked and that the trend is definitely upward. “Low bank rates persist in London and elsewhere and offer encouragement to the overseas manufacturer to extend his business activities. Low prices similarly afford him an encouragement to purchase increased quantities of commodities. Confidence on the part of the manufacturer in the knowledge that he can make a profit on the production and sale of goods at present prices is what is necessary and the restoration of confidence generally among the business community would assist greatly in bringing about a healty industrial expansion. “Confidence and optimism are the key-notes to a steady improvement in present conditions and to the ultimate dispersal of the prevailing clouds of depression. If the efforts of your committee are able to instil a more cheerful and optimistic outlook into the minds of the people of Auckland and of the surrounding districts during your ‘Cheer-up Week,’ and if by performing this service they assist in quickening the wheels of industry which depression and lack of confidence have retarded, then your committee will have performed a definite and lasting service to the community and to the Dominion.”