PROSPERITY OF AMERICA.

Press, Volume LXIII, Issue 19158, 15 November 1927, Page 8

PROSPERITY OF AMERICA.

DOUBTFUL FOUNDATIONS. CITIES FLOURISH AT EXPENSE OF COUNTRY. The opinion that America's prosperity is not based on altogether sound foundations, and that the failure of the primary industries to develop with the secondary industries may affect the country, is expressed by Mr J. E. Strachan, president of the Canterbury Progress League, who recently returned i from a visit to the United States. "During my visit to America," said Mr Strachan," "I was fortunately well provided with introductions, so that I had the opportunity to inter-view heads of State Departments, scientists, economists, business men, and research workers in many fields of enterprise. These interviews and the opportunities I hnd to see the results of America's attempts to solve her racial, economic, and industrial problems convinced me of two things. One is that, speaking generally, there can be no doubt about America's prosperity. The other is that this prosperity is not based upon altogether sound foundations. "America's prosperity is based partly

upon the fact that her gold reserves give her a dominating position in the world's financial market. She has been wise enough not to allow this fact to lead to a domestic credit expansion and the consequent rise of prices which many economists anticipated. Wages have steadily risen without a corresponding increase in prices. A much more important factor in the general prosperity is in the application of scientific methods and large scale business organisation to the exploitation of her natural resources.

| "The chief element of doubt about the permanence of this condition of things arises from the fact that the primary industries are not developing in correspondence with the secondary industries. The land is being steadily depleted of its best workers, who naturally gravitate in the direction that

provides the widest opportunities. Not | only are there fewer workers on the ; land to-day than there were ten years I ago, but these workers are of a lower standard in culture and in efficiency. The cities are being recruited from the best of the rural population. This condition of things is creating the gravest anxiety amongst the most thoughtful and far-seeing economists in America,

who realise that unless'these tendencies can be corrected America will soon be in the position of being unable to feed and clothe her own people. Such a loss of economic independence would be a particularly serious thing for America. It is therefore not to be wondered at that agricultural colleges and State De-

partments are feverishly working towards a solution of these fundamental economic problems. "Although our commercial relationships with the world are very different from those of America, there are many things thai America can teach us, and many things in which it would be unwise to follow her example," he said. "This is a better country to live in than either the United States or Canada. Of that I am'quite convinced.- We must, however, muster all the brains we have got in guiding the destinies of our people along right lines. We are living in critical times that call for a bold and yet cautious policy of development,"