The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo. SATURDAY, SEPTEMBER 22, 1928. THE WORLD'S RECOVERY.

Auckland Star, Volume LIX, Issue 225, 22 September 1928, Page 8

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo.

SATURDAY, SEPTEMBER 22, 1928. THE WORLD'S RECOVERY.

For the cause that lacks assistance, For the wrong that needs resistance, For the future in the distance, And the good that we can do.

It is nearly ten years since the last shot in the Great War was fired, and for the past decade the world in general has been engaged chiefly in recovering from the effects of that gigantic struggle. Naturally the process of convalescence has been painful and slow, and pessimists have even been heard to declare that no real improvement was being recorded, but that civilisation had received its deathblow. But we believe that it can now be confidently asserted that the turning-point has been reached, and that the economic outlook for the world at large is brighter to-day than ever it has been since peace came.

Some interesting evidence that points in this direction is contained in a review of Britain's financial and commercial position issued lately by the Westminster Bank. So far as Britain is concerned, this authoritative statement fully confirms all that we have heard of late of the recovery in her staple industries, more especially in the iron and steel and shipbuilding trades. But the promising outlook extends far beyond the boundaries of British commerce and industry. The world's harvests —the sources of our food supply— have been exceptionally bountiful; America, the world's greatest centre of industrial activity, has recovered from the setback that its markets recently experienced; and Europe is no longer menaced by that "wave of economic depression" which for !he time threatened to overwhelm and engulf her.

In this optimistic survey of the economic horizon all portions of the Empire are included. "At the other side of the world," we are told, "the outlook for a period of political peace and economic reconstruction is reasonably bright." But in this country we hardly need to look so far afield for such an assurance. The hopeful view taken by the Westminster Bank of our industrial and commercial prospects is amply confirmed in the latest bulletin issued by the Canterbury College Department of Economics and the local Chamber of Commerce. There it is pointed out that the balance of trade for the year ending June last was in our favour to the extent of over £12,000,000, which means an improvement on last year's balance of over Of course we cannot expect to maintain so large a surplus permanently, but the figures are very encouraging.

This improvement in the condition of our external trade is fully borne out by the bank returns; and the recovery in the financial position has been marked by the lowering of the bank rate, which, as this bulletin observes, should have an appreciable effect in restoring general confidence in commercial and financial circles. As to internal trade, judged by all the evidence available, though the process of revival is slower, it is already beginning to respond to the general improvement in our circumstances. "The increased demand which calls for larger imports will almost certainly call also for increased internal production, trade and employment; there are, in fact, many signs that movement in this direction has already begun." A general survey of the Dominion's trade, industry and finance appears to justify the conclusion that the outlook is "decidedly brighter than at any time since the end of 1925." These facts should encourage us to look to the future with greater confidence than most people have manifested here of late, more especially as the improvement in our own prospects is confirmed and strengthened by the general revival of prosperity from which the whole world is profiting to-day.