WORLD AFFAIRS.

Star (Christchurch), Volume LXVI, Issue 20362, 20 July 1934, Page 9

WORLD AFFAIRS.

Private Enterprise in | Economic Recovery. NEW YORK BANK’S REVIEW. “ All enquiries into the business outlook come in the end to these familiar j questions of cost and price relation- i ships within the economic system, and of the handicaps which are prolonging unemployment in the capital goods industries and hence depriving the consumers’ goods industries of a part of the market they need to sustain their operations.” declares the National City Bank of New York Review for June, in a survey of general business con- j ditions in the United States. “ The economic system is plainly out of balance as long as the capital goods industries are not giving their accustomed share of employment, and building figures show how little all the efforts to stimulate capital goods activity arc contributing to the sup--1 port of business. It is incontrovertible that the. activity of these industries depends upon private enterprise, and that in turn upon confidence of business men and investors in the future, and upon the general state of business and earnings. Apprehension of Future. “ The stage of the recovery movement, which everyone desires to reach, is the stage at which the ‘ priming of the pump ’ will come to an end, and private enterprise will take over and carry on. Plainly that stage has not arrived. There is distrust of the ability to keep goods, priced in relation to the higher costs that have been enforced. moving over the retail counters. There is apprehension of disrupting changes of policy, or of unforeseen complications, in many features of the recovery programme. The labour troubles are disturbing evidence of the fact that efforts to restore order in the economic system by exercise of overhead authority may bring new disorder, for one-half to three-quarters of the strikes reported have originated in questions as to methods of collective bargaining; or in other words, what methods of settlement shall govern in the future if and when real controversy does arise. “ All business men are conscious of this impediment to recovery, and it is to their credit, and an important factor in the situation, that their morale continues good. Indeed, the argument that the natural forces of recovery based upon the wants of all human beings for more things than they have and upon the credit improvement, will overcome all impediments, is a strong one. The belief that experimental measures will be modified or abandoned as they are discovered to be ineffective or harmful likewise has good ground, and is a reason for optimism. False Confidence. “ On the other hand, the assumption that the Government will keep business going through its expenditures if natural forces do not suffice for a recovery, is a false basis for confidence. It is true that government expenditures can overcome the lack of sound economic relationships as long as they are large enough, but the longer they are required to keep trade going the more reason for dissatisfaction with the situation and apprehension as to the outlook. Heavy government expenditures and private enterprise freely nourished, by private capital do not readily exist side by side, and the paramount problem is to restore the latter.”

mining. Reports and Returns. . *^ lle „. production statement of ElectroMel bon*™* C r* r f Australasia, Ltd., dated -Melbourne, July 7, j s: Four w'ks Four vv'ks ended 30th ended 2 7th , May, 1934 June, 1934. Zmc (tons) 4,150 4 147 Of which used at ’ 4,147 the works 50 cn Silver load product for shipment to Port Pirie for realisation— Lead (tons) .. 130 169 Silver (ounces) 3 3,800 15,300 Paddy’s Point. DUNEDIN, July 20 The Paddy’s Point Gold Mining Com?0 an ,s; s e n re w t ; i s s .^o^ oz i4dwt **<*■ -»* MARKET IS WEAKER. Poor North Island Demand for Potatoes. Lack of demand, from the North Island for potatoes has resulted in a weakening of the market in Canterbury fit- C’ tun t 0 farniers for prompt deiiveij. Growers -are not keen sellers Wingatui took 2100 sacks from Lyttelton tor the north yesterday. and also lifted 800 from Timaru AU growers and merchants are waiting for the result of the Government’s negofor removal of the Australian embargo, and an official announcement on the subject has been delayed longer than was expected. Efforts are being made to get the Australian Government to reduce the duty from £2 10s to £1 and with the probability of the embargo ?i* p P Iles will be sent across the Tasman if the price there continues to rise. Merchants are having some difficulty in obtaining supplies of reallv good onions, which farmers are not anxious to sell while the price is rising. The recent improvement in the market for partridge peas has been maintained on account of a somewhat better export tnqi».ry. Only a few lines are still in farmers’ hands. Sales have been made at ss. f.0.b., s.i., with sellers now asktoSfarnieistClUal t 0 from 3d to 4s 6d Fowl wheat remains firm, with continuous trading. Values are from 3s to bs Id on trucks. Most of the milling wheat has been handled, and some of the lines delivered late have been taken by millers. Not much actual delivery of cocksfoot, ryegrass and clovers has taken place. What trading there is has been in anticipation of the spring trade. Following are the prices quoted to be paid to farmers on trucks at country stations, sacks included unless otherwise mentioned:— Wheat, f.o.b.—Tuscan 3s 10d, Hunters 4s. Pearl 4s 2d (Jf]y delivery). Fowl Wheat—3s to 3s Id a bushel. .Fotatoes —White (prompt delivery) £2 12s 6cl (July); Dakotas £2 10s i (prompt). £2 12s 6d (July). Onions—-30s to 35s a ton, according to quality. Ryegrass—Perennial 3s 3d to 3s 6d: Italian and Western Wolths 3s 3d to 3s —Akaroa !)d to lOd; Plains to Clovers—White Is to Is 4d: c iwgrass Oats—Cartons Is Sd to Is lid; Algerians Is 7d to Is 9d: Duns Is' 9cl to 2s a bushel, according to quality. Chaff—To £2 10s. Partridge Peas—Xo. l’s 4 s 3d to 4 s 6d: f.a.q. 3s 9d to 4s. Linseed —£ 14 a ton. Bran—Shipping £4. local £4. Pollard —Local £5 10s, shipping £4 10s. Flour-7—£l3 12s local, £l2 17s for shipment to the North I*sland, with the usual increments for smaller packages.