SKINS OF RECOVERY.

Dominion, Volume 2, Issue 610, 13 September 1909, Page 6

SKINS OF RECOVERY.

/ There are'not wanting ' signs that a general recovery in trado a,nd commerce is takjng place, not only in New Zealand, but' throughout the world.' Y/hon the effects of the American crisis were first felt in the' Domihion we directed attention to tho necessity of exercising extreme caro, and. economy. N Un: fortunately the Prime Minister' found it oxpedie'nt, with the elections coming on, to indulge in wildly optimistic prophecies and many of the public were misled thereby, and so were caught unprepared. Howover, tho depression which resulted from the crisis'is, we are glad to think, beginning to show signs that it'is not likoly to be of long duration, The crisis affeoted us mainly through 'the drop in the values of our exports, consequently for the year onded September 30, 1908, the value of' tho imports to New Zealfind exceeded tho exports by a substantial sum. Traders were immediately obliged .to curtail their imports, domestic trade shrunk, and with, it followed re- . trenr.hmrint in public 'and' 'fc.iivato 1 life.,

Tho offects. of the .depression that overtook us were increased because of tho extravagant stylo of- living into which the community drifted during the long years of prosperity. In like manner the recovery has been helped in its speedy arrival by tho economies practised. ] But, it may bo asked, what evidence is thero of a recovery 1 In the United States, where tho depression had its origin, 1 all reports agroe that the tido of trade has turned. America is a huge country, with a big and enterprising people, blessed with romarkablo natural rosources and abundance of wealth. It ■is impossible for such a country to long remain under the pall of depression, Thore is a distinct recovery in America, It is the same in Great Britain. The great shipbuilding industry is again tending towards activity, stimulating many sub-industries; tho textile industry is also active, but, above all, the British capitalist has been freely financing i numerous .foreign Governments and enterprises, and the' expenditure of the money must act as a powerful stimulant to trade and coihmorce. The building of ships, tho-construction of railways, harbours, canals,, and other great works of ■utility involve ono.rmous expenditure and the employment of battalions of workers. In Canada / and Argentina money is being freely spent in development. In Europe there are also/signs -of improve■ment, and even Japan, which was prostrated by tho war'with Russia, is recovering. China is awakening! and is progressing, and India and . Egypt aro again providing outlets for commerce.

This wave iof renewed activity has reached Now Zealand through the same channel as did the depression, namely, through;tho values of our oxports.; These, are again on the rise. Wool, as "we showed tho: other. day, is advancing; frozen: meat, which a few . short weeks .ago appeared to be in' a hopeless condition, is now becoming a good asset. Meat prices are advancing, and tho freezing, companies are looking forward to clearing stocks during the next two or three months, so that the now season will begin under . almost as favourable conditions as in the past. The by-products of the pastoral • industry are meeting with a fair market, arid grain-growers have no cause, tfor complaint.'. .Tho, hemp industry is reviving, and the price to-day leaves a. fair margin . of.'profit. Hemp-millers can at present make contracts, for about six 'months ahead. The dairy industry, despite a possible slight fall in prices, is flourishing. • Buttor may not fetch quite as much as it did last sbason by perhaps a'penny, per lb'.j'but the-industry, nevertheless, is in a very, sound position. The sawmilling industry,.from the reports that,, have been ' circulated recently,is becoming active. Then wo have ' 'the strongest evidence of all, the . gradual falling-off in the cry for work from tho unfortunate unemployed. We think enough has' been said to justify us in .remarking that a recovery has set . in, but that affords flo warrant for a return.to the extravaganco of a year or two ago, Wo-have a good deal of leeway to make up before we can think of extravagance. Tho speediest road to recovery would be to restore confidence and set capital circulating/ freely in ' the various chan'nels of • industry. 'It seems hopeless, however*'/•lx^gettfllM.T.Gov.oimtno^ this. Ministers still ,go about the country hinting at ■ added taxation, and frighteninginvestments out of . the Dominion;:,.;.:. ~ . .1 i., ; -