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NEW ZEALAND AND THE WORLD

HR. PBIL MYERS'S IMPRESSIONS WHILE ABROAD PROPHECIES OF SLUMP SCOUTED New Zealand is spoken of at Homo #s being the 'beat governed Dominion in the Empire, and the general impression in England is that Labour is saner in Now Zealand than, in any country in the world. Thus Mr. Phil Myers, who, with his wife and family, lias returned to the Dominion after a lour abroad of over thirteen months. During that time Air. Myers visited America, Canada, the United Kingdom, Belgium, and France, and has much to say on the industrial conditions of those countries, lie says that in English eyes, New Zealand is a fine place, and from his own experience, is one of the countries least aft'cctcd by tho high cost of living. Speaking to a Dominion reporter yesterdny, Mr. Myers maintained that if the Government so desired, in England there were thousands of people desirous of settling in the Dominion. "The New Zealand forces," lie added, "kept the highest traditions of this country, and in England they are spoken of ...very highly indeed. Rumburs of Slump. . "It has been said that there is likely to be a slump here—in fact, the rumours and prophecies started by apparently sage ( business men are nothing more than alarmist wanderings. I can sec no reason for a slump in' New Zealand. It is a. country thiit is productive, and therefore .it can always find markets for its produce. No doubt the increased, prices of goods all over the world have made the sum total of imports higher in value than should be the case, but it is quite possible that the coming stringency of the money market may right all, this in a few months, as soon as export tradi becomes an easier operation." In reference to prospects of a slump in England, Mr. Myers said that his experience had shown him that in tho case of manufactured articles at Home, prices had fallen, but had in many cases risen, owing to tho excessive prico of coal and labour. "In irany cases," he added, "wages have fallen, 'Labour trouble lias been very bad at Home, and the prospect.is that wages will have to come down, or there will be no work for the employees. Goods are not ISO fvoely bought becausa tlie largo increases in the price of production are not able to be met by many thousands of persons whose incomes, eaten up by the heavy taxation, and the abnormally high cost of living, are not ablo to purchase 4> freely.. ;It is on this account that there is less demand for labour, with the result that feere is considerable unemployment in Britain, -I really think that in the near future both England and the United States will have a set-back . on account of the high cost of production. But in my opinion, based on what I have seen at nome, the phase will be a gradual one, and iinkss there is a harmful wave of over-speculation, them need be no fear of any dangerous slump in many lines of goods. Exchange, and Financc. What has been, the rosult of tho high rates of exchanger' inquired the interviewer. "England i 9 suffering," replied Mr. Myers. "One of the worst results has been that India, and the East generally, America'and Canada, are not buying from tho Old Country. The aftermath of such a state of affairs can bo easily forecasted. One thing I noticed in the financial affairs of Britain, was the high rate of interest on money. As-far as I can gather, New Zealand is the only place in tho world where there is such a.low rate as 5} per cent, free of income tax—the compulsory rate for local Wlies, who at the present time, I believe, are finding difficulty in obtaining finance for tho completion of necessary works. In England the bank rate is & per cent., and in Australia ono can buy Government bonds at 5-i per cent, at from 90 to 94, the figures being significant." ' Conditions in the United States. In Mr. Myers's opinion, labour conditions in America are very bad, and in many cases manufacturers were closing down their factories in preference to grafting requests from the workers for exorbitant pay. The result of this state of affairs was that the workerß who had demanded the increases were faced -with t*o alternatives—either to be out of work, as there would be no work to ro to, or to go back to their employment at a decrease in wages. "There was much talk about a slump when J. was in America," said Mr. Myers. "But the point is this: Retailers, overstocked, found it necessary to. reduce prices. However, they could very well do this, as the profiteering that was (,'oing on would allow them to cut prices by a good deal, and even then to make a handsome profit. Tliere is not the same trouble over . the exchange rates in America, and taken generally trade is good." Australia's Depression. Depressing is thj adjective applied Bj Mr. Myers to the conditions at present existing in Australia. Ho thinks it probable that there will be a great deal of unemployment in the Commonwealth in th? near future. Tho apparent reason for such a state of affairs is the evorleonrring demand of the workers for preposterous wages. AU the trouble in Australia has, he thinks, been brought about by the industrial unrest that if rampant throughout: the country,'and. even at present there are many unskilled workers out of employment. In this connection Mr.' Myers referred to Labour Governments. ' "There is a great factor in New Zenland . conditions that helps the Dominion with the world at large," maintained Mr. Myers. "We have not got a Labour Government, tho lack ol which is a vc 17 good thing for thft country, I explained to people T met on my trip that the extreme' party in the Dominion has very little liojie ol getting to power, hs the element of infaue Labour is more than counterbalanced by'the reasounblo and snne working man, with his interests—property, etc.—in the country, who has 110 time for the extremist and the would-be Bolshevik." Post-War Problems, , In France and other European countries industrial problems have acted as a retarding factor in the post-war recovery,of the various lands, Mr., Myers considers. Of tile European Powers, Belgium has made a recovery nothing short of remarkable, for the very Teason that her people are practically all workers, with great interests In their little, home, "it is considered at Home," added The Dominion's informant, "that it will be only a short time before things get back to' normal in Belgium. Cities are being rebuilt, the devastation caused by the Hun is being gradually repaired, and the spirit with which the country is undertaking the work, which is truly a colossal task, is very line'. Belgium has a great future in the world ot' commerce if things go on as they are."

Franco, unfortunately, has suffered in common with other countries as a result of labour unrest, which is n very grave trouble in a country which r-i endeavouring to reconstruct as'quickly as possible. Mr. Myers said that a great deal of depression hns boeii caused in France awing to the unsettled industrial state.

"The trip has been a great experience," ne conclude. "I'VorTi what 1 finrD seen, I would wani people to cxercUe caulion ill rash spending. There can lie no doubt that iu a fairly Ehort tjoie the prices of cornmo3?W)6 mhSt fall as tte jrerld wcovere from tie many ilia."

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/DOM19201231.2.26

Bibliographic details
Ngā taipitopito pukapuka

Dominion, Volume 14, Issue 82, 31 December 1920, Page 5

Word count
Tapeke kupu
1,266

NEW ZEALAND AND THE WORLD Dominion, Volume 14, Issue 82, 31 December 1920, Page 5

NEW ZEALAND AND THE WORLD Dominion, Volume 14, Issue 82, 31 December 1920, Page 5

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