The Timaru Herald TUESDAY, MARCH 28, 1933. "THE DARKNESS IS PAST."

Timaru Herald, Volume CXXXVII, Issue 19451, 28 March 1933, Page 6

The Timaru Herald TUESDAY, MARCH 28, 1933. "THE DARKNESS IS PAST."

“Our credit system lias been so fully restored,” declared the Chancellor of the Exchequer in a momentous speech at, Birmingham on Friday, “that to day Britain is almost embarrassed by the amount of money coming into London from other countries; brought by people who feel this is a safer place than that from which the money came.” Sere he Chancellor reveals another of the economic paradoxes that seem to baffle the world. Britain is weighed down under a burden of idle money, idle commodities, idle people, idle Works and idle raw materials; indeed, the country possesses immense riches in all the essentials that make for prosperity, yet leaders and rank and file are hampered by the economic difficulties of the times. As Mr Chamberlain points out, money is pollring into English banks, which already are adequately supplied with funds more than sufficient to meet the Immediate demands of borrowers. During 1932 the amount of money for which bank customers in England could have drawn cheques increased by over £209 millions. Obviously there is very much of an anomaly in that fact, and the continuing lack of opportunity to use that extra £209 millions, for nu increase in the supply of available money is generally thought to lead to a rise in prices and all increase in orders for industry. But these tilings have happened in a lesser degree than had been anticipated. “There is money enough in existence in England for the present,” declared one well-informed writer in a review of the financial situ ation in the Old Land at the close of last year. “The money needs directing into investment that becomes immediate spending power, being spent in the purchase of raw materials and of labour that exists in plenty.” But the hanks are the custodians of millions, not owners, hence the caution that has to determine sound hanking policy:

A bank, always liable to have hurried demands for currency notes made upon it, is necessarily cautious in making loans—it must have a reasonable assurance that the borrower is able to pay back at short notice and that his work is profitable enough to enable him to do so.

That cannot be said of a large section of British industry to-day. Those most wanting new money are often unable to prove credit-worthi-ness by a record of past profitableness or working. And at present very often the prosperous concerns are not in need of fresh Working capital.

The bankers’ problem nevertheless is the traders’ problem. This is put picturesquely in the words of Mr Beaumont Pease, in his address to shareholders of Lloyd’s Bank: Something must occur to induce the owners of increased purchasing power to put it into use. Some spark must reignite the torch of hope, some outstanding event or accumulation of events must strike man’s imagination and persuade him that the darkness is past and the dawn at hand, that the depressing influences by which he has been held down so long have been removed, that trade is now on the upward turn, that now is the time to extend, and that if he does not buy to-day he will have to pay more tomorrow for what he requires.

Mr Chamberlain furnishes the spark required. Party activity in Britain, particularly in the ranks of the disgruntled Liberals would seem to indicate that a change of Government would bring Britain back to prosperity. Mr Chamberlain in presenting an optimistic view of the outlook in Britain refutes view in making a strong appeal for continued confidence in the National Government to enable them to complete their task. The record of the Government entitles them to the whole-hearted support of every patriotic citizen. The credit of the country has btfen restored and Britain has regained her position of first exporting country in the world, thanks largely to the confidence created and the sound policy pursued by Mr Kamsay Macdonald and the patriotic members of other Parties who are supporting the National Government in its splendid efforts to restore the Ship of State to an even keel, and create an economic equilibrium that will herald the Ilawn of a brighter era of national prosperity.

THE FIRST TEST. Having regard to the demonstrated superiority of the English cricket team in its engagements in Australia, in which the M.C.C. players suffered only one reverse, the showing of the New Zealanders,in the first test was most com mendable. It was something of an ordeal for the New Zealand bowlers to have to face a galaxy of English batting talent at the top of its form. No one who has watched the Englishmen in their matches in Australia will experience the least feelings of surprise that the visitors made light of the New Zealand attack. Doubtless the New Zealand batsmen iq facing the well-directed and exceptionally destructive English attack, very early realised that the splendid score the visitors had compiled was quite out of reach. Nevertheless, several New Zealanders acquitted them

selves very creditably against the battery of bowlers pitted against them. It has been said that New Zealand has attained full stature in cricket, hut the team’s performances against the best Australian teams, much less against the most evenly balanced English team that has journeyed to Australia in quest of “The Ashes,” have furnished Conclusive proof that the quality of New Zealand cricket is yet a long way below English and Australian standards. The first test match against the victorious M.C.C. team has been played and drawn. One or two obvious failures were revealed in the personnel, which ought to have been substantially changed for the second test with the deliberate intention of trying out several young players against our redoubtable visitors.

“SPEND” SAYS ABERDEEN!

Great minds throughout the world are struggling with the problem of how to increase the purchasing power of the people, and thus oil the wheels of commerce, and set more men to work in the factories. There was a time when it was fashionable to preach rigid thrift, hut it is obvious that in rational spending reposes some measure of solution of the problem of correcting the maldistribution of real wealth that hampers the domestic affairs of so many countries. One of the most arresting suggestions in this connection comes from Aberdeen, so famed throughout the world, in reputation at least, for acceptance of the doctrine of thrift. “We hear on all hands’from those who are the custodians of thrift that judicious spending has become as imperative a patriotic duty today as was careful saving eighteen months of two years ago,” says The Aberdeen Press and Journal, which proceeds to propound this solution;

“If every person earning money today in sufficient quantities to have a surplus over the sum necessary to cover his normal needs were to spend a shilling extra each week during 1933, no less than £20,000,000 Would be added to the nation's income. And an average of a shilling a week fol a year is a very small sum to fix for this additional expenditure. It is probably safe to say that an average of ten shillings' extra expenditure yearly could be attained, and the aggregate of such Sums, applied in accordance with the principle of buying British, would give work for a year to about one million Of the unemployed. It would not’ stop at that, for the movement, once it got going, would be a snowball affair. There are ample indications that the filip which a little extra public spending would give could vastly improve the situation.”

Everyone engaged in business today will recognise the value of the Aberdeen proposal; indeed, if the idea were to materialise tomorrow in New Zealand, the financial situation would be transformed almost overnight through such a valuable and welcome uplift being given to business. “ PERFECT LAMBS.” In view of the criticism that from time to time has been directed at the quality of New Zealand products consigned to the London market, the report of the judges in the competition inaugurated by the New Zealand Meat Producers Board makes interesting and encouraging reading. The competition was inaugurated in the hope of improving the quality of lambs bred in New Zealand for the London market. Moreover, it is hoped that the Competition will educate pastoralists as to the requirements of the Homeland. The exhibits, it is now reported, attracted considerable attention at Sniithfield, and the whole display provided an effective advertisement for New Zealand lamb. But if the display was attractive, the report of the judges was most conclusive. “We are of opinion,” said the judges, in selecting the champion pen, “that these are perfect lambs, and it is scarcely conceivable that anything more suitable could possibly be produced for the London trade.” This is high praise indeed! References are made to the even run of very choice lambs, remarkably consistent in size, with complete absence of anything approaching wastefulness. The champion pen is described us “ideal in size, of perfeet quality and texture, and make and shape leaving nothing to he desired.” Bucli flattering comments are most encouraging, and it is gratifying to note that the warmest congratulations were showered on the London manager of the Meat Board, who lias now reported that all sections of the trade conceded the opinion that the display of New Zealand lamb was one of the finest seen at Smith field. The competition has shown that the Meat Board is alive to its responsibilities, and the vital importance of maintaining the level of quality on the highest possible plane, more particularly in view of the increasing competition in the meat markets of the world. Pastoralists and all interested in the meat industry in New Zealand will await the report on the South Island shipment with keen anticipation.