CHEERFUL OUTLOOK.

Waikato Times, Volume 114, Issue 19065, 2 October 1933, Page 4

CHEERFUL OUTLOOK.

THE RISE IN PRICES. PROFESSOR TOOKER SPEAKS. TO ADVERTISING MEN. A cheerful view of the future was taken by ProfessorA. H. Tooker, of Canterbury College, one of the New Zealand delegates to the World Economic Conference, In the course of an address he gave to the Advertising Club at a luncheon held at Ballantyne’s recently. Mr C. L. Rollo presided, and there was a large attendance. Professor Tocker said that one of the things' that Impressed him at the conference, In the records given of the effeots of the depression in various countries, was that those effects had been so variable. The countries that had suffered less severely were England, Sweden, and probably France. For instance, the English national Income had fallen by IS per cent since 1929. In America the spending power of the people had been lowered by 50 per cent and more; in New Zealand the fall was about 35 per cent. In Germany the depression was so phenomenally severe that something had to be done, and anyone who could present a co-ordinated policy would ■have the freedom to carry that policy out. Also, the reconstruction programme now being followed in America would never have been accepted In ordinary times, but conditions were so bad that anything was better than leaving things as they were.

Feeling of Confidence. While he was away he found that there was growing up a feeling of confidence. The view was that there had been other depressions in the past, and It was a question of how much they would have to give way before recovery began. England pinned her faith in easy and abundant credit. In February, 1932, the Bank of England rate was 6 per cent, in June of that year It was down to 2 per cent, and since then money had been plentiful. Everywhere, however, there was a sort of defence complex—a feeling in various countries that they must at all costs protect their own people. The result was that over a wide area where there was once free trade in agricultural products there were now various forms of restriction. For instance, the fall in butter prices wa? largely due to the quota imposed b> Germany on imports. If the confer ence could have had the German quot: lifted the pressure of London supplic would have been relieved. But il was impossible. The present regim< in Germany was largely supported b: peasant farmers who were ohiefly on gaged in milk production, and the protection of those peasants was the big plank of the political platform. Therefore, the quota must remain. Earlier in the year New Zealand butter reached the low level of 66s a cwt. It had risen lately by 50 per cent., which meant a big thing to the producer. Also the prospects for wool were most promising, and the prices for meat, hides and tallow, etc., had risen.

Profitable Export Season. All In all, the prospects 'for a profitable export season this year were the best for three years. The present rise in prices covered many primary products, and it was chiefly apparent over the sterling area which was the biggest trading area. The gold countries were handioapped In that they were hedged about by tariff restrictions, and so was Amerloa. If export prices rose substantially they would moan a very profitable season. They were still elements of uncertainty, but the position as a whole was much more certain. Professor Tocker also dealt with the trading conditions abroad and the methods adopted In business—some of them on a wholesale scale that could not be followed here. Advertising, for Instance, was an art. Business heads knew by their advertising appropriations just what the results would be. Business people here had much to learn from England and America, though It did not necessarily mean that what was suitable overseas would be entirely suitable

here, where the outlook and environment was not exactly the same. One thing that was absolutely necessary was quality, whether in business or the goods that business produced. This was not lost sight of in New Zealand, where many people had come through the slump well, in spite of its seriousness.