OPTIMISTIC VIEW

Wanganui Chronicle, Volume 75, Issue 13, 16 January 1932, Page 7

OPTIMISTIC VIEW

DOMINION'S POSITION SIR M. SHELDON’S VISIT t AN INTERESTING REVIEW I X Ratos of exchange, the banking situ* ation, and inter Empire trade were subjects discussed with ai interviewer by Sir Mark Sheldon, well known in commercial life in Australia, when in Greymouth this week in.the course of a motor tour. Reviewing conditions in New Zealand, Sir Al ark said that from what he could sec there was no reason why, at the end of this year, the country should not be on the way to recovery. Exchange Position. The exchange position, said Sir Mark, was undoubtedly affecting commorciai relations between New Zealand and Australia. It was costing about 13 per cent, in the way of exchange to Australian merchants to operate in New Zealand, and this w s naturally reflecting on New Zealand timber exports to Australia. “On the other hand.” continued Sir Mark, “you cannot overlook the fact that Australia, in exporting coal, is at a distinct disadvantage against the New Zealand mine-owner, to the amount of the exchange I have mentioned. Again, New Zealand is vitally interested in tho Australian exchange situation by reason of the fact at wo both compete in the world’s markets in butter, wool, and to some extent frozen mutton. Naturally, the drift of foreign buyers is towards Australian shores whilst* the exchange is so favourable to them, as as against operating in. Now Zealand. Now Zealand, therefore, is vitally interested in tho Australian exchange situation. I cannot sec any reason why Australia should not, by force of economies, both public and private, rectify the exchange position by tho end of this year, or largely so. New Zealand Banking. “I think your banking situation is really good,” continued Sir Mark. “It is one that commends itself to my mind as showing that New Zealand has got the situation well in hand. The figures disclosed at the end of the last quarter are very satisfactory, and show a strong position. Undoubtedly. of course, there mast be some adjustments of values, but this, although it is going to be inconvenient for individuals—and probably more than individuals—is not going to enibarass the country or the financial institutions seriously. From what I can see in New Zealand, there is no reason why, at the end of this year, she should not be on the way to recovery; she is not likely to suffer to the same extent as Australia has done, as she is not getting such fluctuating seasons. So far as I can see. two outstanding features in New Zealand arc the high values of certain classes of land and the borrowing of certain local bodies. These are matters which adjust themselves in the ordinary course. Trade With Canada. “I think New Zealand has everything to gain from making an arrangement with Canada, on a reciprocal basis,.” replied Sir Mark, when asked for his views on the subject of trade with Canada. “New Zealand’s position is such that many of her exportable lines would be welcomed in Canada—and a very strong spirit. I must say, which 1 discovered on my most recent visit—of developing Empire trade. If I were asked to say which of the Dominions was the greatest advocate for Empire trade, I would undoubtedly say Canada. This may be surprising to a lot of people, who think that Canada is linked up with the United States, but there has been a. development in Canada in recent years, which has alarmed the Canadians, namely, the overpowering strength of their friendly neighbour across the line, and they see that the only way to develop Canadian independence is to get closer and closer trading relations with other parts of tho British Empire. Such being the ease, why should any impediment be placed in the way, so far as Canada goes, seeing that New Zealand and Australia are both likely to gain by the interlacing of commercial relatious on an arrangement of reciprocity! I hope that Air. Downie Stewart’s efforts have been successful, and 1 fee! confident. they have. When one realises that, in the Empire, we have probably as large a technical knowledge as in any other country in the world, and that we have practically the best of the primary products ami raw material, why should w© not develop these as a unit, working in harmony and co-op-eration, rather than allow ourselves to be exploited by other countries! One hopes that the Economic Conference, to take place between the Dominions, in Canada this year, will load to a new era in Empire prosperity. There is more likelihood of some common understanding being arrived at, at this conference, than at previous conferences, by reason of the fact that Great Britain, New Zealand, Australia, and Canada have all got strong Governments, all recently elected and feeling the strength of their position. At previous conferences, there has never been such a situation, where all the component parts have been fresh from the people, with authority to act.”