The Waikato Independent Incorporating “The Cambridge Gazelle.” SATURDAY, JUNE 16, 1923. CONDITIONS AND PROSPECTS

Waikato Independent, Volume XXIII, Issue 3071, 16 June 1923, Page 4

The Waikato Independent Incorporating “The Cambridge Gazelle.” SATURDAY, JUNE 16, 1923. CONDITIONS AND PROSPECTS

Perhaps there is no one in New Zealand in a position to give a better idea of the general condition of affairs in the Dominion, and its future prospects, than Sir George Elliot (Chairman of Directors of the Bank of New Zealand) Seeing that nearly 50 per cent- of the entire banking business of the Dominion is transacted by the Bank of New Zealand, this gentleman has special opportunities of being able to form an accurate estimate of the finances of the country —this apart from his being recognised as an exceedingly shrewd and able financier. Hence the annual review given by this geutlcman in his address at the annual meeting of proprietors of the Bank of New Zealand -at Wellington yesterday is entitled to more than usual consideration. In his general remarks on the condition of affairs in the country, he stresses the marked improvement in financial conditions, brought about especially by a, greater demand for wool, with a consequent advance in its price, and by a largely increased output of milk products. The imports into New Zealand during the year show an increase over the figures for .1921-22, but the exports show a still larger increase of £1,740,374, so that, on the whole, the balance of external trade is in favour of New Zealand to the amount of £8,573,117. This most favourable and improved position of affairs is a. subject of congratulation to all, though it is hardly •fair to make comparisons with previous vears’ figures, owing t-o the great alteration in the purchasing power of money. The substantial surplus of e 1 ,315,083 in the Dominion’s revenue over expenditure is also a matter for congratulation. Dealing with this subject. Sir George Elliot said:—“The people of the country should not be mislead into supposing that the necessity for a maximum of economy in both public and private expenditure has passed away. The recovery from the severe depression of two years ago has been too rapid to be altogether wholesome, and it would be unfortunate if the lessons of that, period were too quickly forgotten. Notwithstanding the optimistic reports which have recently been publishes!, and the splendid increase in the value of wool, conditions all the world over are far too unsettled to warrant the assumption that the. present price of commodities will lie maintained. The - number of bankruptcies during last year has been larger than usual, and the published figures by no means represent .all •••who have failed. Numbers of farmers —■ many of thorn soldiers deserving the best, of fortune—havo been obliged t& swrropd^: theif■ beidiiigs, thus

losing- all their hard won savings. In other cases, vendors have cancelled a proportion of the purchase money to induce purchasers to carry on. Most branches of wholesale trade are now on the high road to recovery from the over-importations of 1920-21, and are giving promise of steady progress. It is a tribute to the sound financial standing of the community as a whole that, such an exceedingly large proportion of our traders have successfully emerged from so severe a crisis. Heavy losses have been made, but, for the most part, they have been faced with a surprising equanimity and with a determination to profit by the lesson. The financial storm passed lightly over the retail traders.” On the whole, this summing up of the position seems a most reasonable one, that should afford general satisfaction to the rentier. Briefly put, it means that considerable improvement has taken place during the past year, but there is still need for prudence aud for close application to worlc and production. Speaking of the outlook for the future, Sir George Elliot’s remarks are worth quoting fully. He said: —“In these uncertain times, it is diffiult to sav what the future has in store for our Dominion, since we rely for our prosperity on the prices our primary products realise abroad. We are thus dependent on conditions entirely outside our own control. The purchasing power of our principal customer —Great Britain — means good or bad times for this Dominion. and the purchasing power of Great Britain again depends upon conditions which prevail in other countries. One can scarcely think that the present exceedingly strained relations between France and Germany can long continue. Nor should the recovery of Russia, *1)0 a matter of more than a few years. With Germany settled down to a grim determination to retrieve its position, and Russia resolved to conduct its life on common-sense lines, resolved also to develop its immense resource.*, new economic problems will arise, the result of which it. is impossible to forecast. Prudence dictates that the people of this Dominion should wo conduct their affairs that they shall always be equal to either fortune. The information I have obtained, the knowledge which we possess as to the spiritin which the great majority of our people have met. the difficulties of the past two or three years, lead me to look forward with confidence to the future of the Dominion and to expect that the years to come will witness steady progress. New Zealand is a land peculiarly fortunate. It is a young country, but its very youth should be its chief asset. Every day it is making its own history, and its own traditions; if it remembers the value of co-operation between the classes, that history should make pleasant reading in the future.”