THE COMING YEAR.

Waikato Times, Volume 110, Issue 18395, 31 July 1931, Page 8

THE COMING YEAR.

PRICES REACHED BOTTOM. MOVE IN UPWARD DIRECTION. ECONOMIC READJUSTMENT. (By Telegraph—Special to Times.) WELLINGTON, Thursday. The current financial year, said the Minister of Finance in the House of Representatives to-night, is likely to be remembered as a difficult one of economic readjustment, although a great deal has already been accomplished in this direction. Further, it would appear that we now know the worst, and that is half the battle. It appears reasonably certain now that prices have reached bottom, and there is evidence of some movement In an upward direction. Economists in all countries, however, seem to be in agreement that prices will stabilise on a lower level than we have been accustomed to in recent years; but stability is the essential factor, for without that there can be no confidence in business. Given the foundation of stability, we have but to complete the task of adjusting iour (economic structure by bringing it into alignment with the new price-level, and then the way is clear for a revival of business and a general retui'ln to prosperity, which alone can provide a permanent remedy for the problem of unemployment. Public Finances. The public finances reflect the ppsition of the country generally, and the restoration of budgetary equilibrium on a permanent and secure basis is a practical impossibility unless and until general economic equilibrium is restored. The Government's proposals have accordingly been aimed primarily at assisting the solution of the larger problem, which involves the adjustment of the finances -of ;our farmers, the lowering of working costs, direct and overhead, and the writing off of losses incurred. These adjustments are largely matters for private initiative, and the most the Government can do, short of a radical change in the economic system, is to give a strong lead and endeavour to prevent exploitation of the situation.