RESTORE CONFIDENCE

Waipa Post, Volume 41, Issue 3196, 2 September 1930, Page 7

RESTORE CONFIDENCE

MORE AGGRESSIVE METHODS NEEDED HERE.

We are inclined to think in New Zealand, no doubt because we are so close up to our own problems, that we are unique in that we have been passing through somewhat difficult times. But the fact is that the world is undergoing rapidly a process of reconstruction, and more aggressive sellings and advertising methods are called for to smooth out the peaks and valleys of business. New Zealand is in a more fortunate position to-day than any other country in the world, but the progress is being retarded by the fact that manufacturers, wholesalers and retailers generally are mesmerised by what they are pleased to call a slump. Any depression which exists may be very largely remedied by a resumption of normal activities on the part of traders and the general public. Undoubtedly we shall all have to work a little harder and watch our outgoings, but there is no possible excuse for stagnation. Mr Harold Whitehead, sometime Head of the Department of Business Methods and Sales Relations of Boston University, relates in the Advertiser’s Weekly, of Great Britain, how America solved a much greater problem following on Wall Street in the autumn of 1929. After relating the effect that this crash had on the general public, and on business generally, he says:— “ It was then that advertising and publicity began to stem the rising tide of fear that might easily have become panic. President Hoover called his committee of business men to advise on the matter. Then came the news that big business would not stand for reduced wages. Fortunately, wise counsel prevailed, and the fact that low wages means curtailed distribution was recognised. The publicity given to this decision caused people to pause and ask if business could not keep going. “ Business houses added their weight to the growing tide of confidence, and the public began somewhat hesitatingly to settled down to routine. Then Ford announced that he had increased wages to the tune of nearly four milion pounds a year. A little later the Federal income-tax was reduced one per cent.

“The shops reported a Christmas trade up to normal or very nearly so. The continued normal advertising of commodities helped to make the inevitable let-down in trade more gradual. Advertising proved a valuable brake and undoubtedly prevented a slump in business.” There is undoubtedly a precedent here to be followed by the public of New Zealand. Prices for our primary produce have “ touched bottom, and increases are to be expected in the near future. Undoubtedly wisely planned advertising and selling will produce results.