WITH THEIR “COATS OFF”

Dominion, Volume 15, Issue 17, 14 October 1921, Page 8

WITH THEIR “COATS OFF”

TACKLING THE SITUATION A WARRANT FOR OPTIMISM PRIME MINISTER’S READING OF THE TIMES FACTS AND FIGURES IN PROOF The Prime Minister, who was the guest of honour at the New Zealand Club’s luncheon yester- ' day, again spoke optimistically, emphasising his points with copi- • ous facts and figures. He illustrated the change that has taken place by pointing to the fact that tho balance of trade for the eight months of the current year had taken a favourable turn. The wool market looked healthier, with a definite and appreciable advance in values, the coal output was increasing, and generally, lie said, it was apparent that the people were rising to the occasion and had their “coats off” and were working. There was a large attendance of members and guests, and Mr. R. J. Ackins, president of the club, in welcoming the Primo Ministetr, said Mr. Massey had honourably represented the Dominion at the councils of the Empire Mr. Massey was a great Imperialist, and ever an enthusiastic New Zealander. Incidentally he was not a pessimist—and if was optimists that had made the world. (Applause.) MR. MASSEY’S SPEECH. On rising to speak, Mr. Massey was greeted with applause, spiiited and prolonged. He said he appreciated the fact t hat such a large nunibetr of business men were in attendance nt the gathering. Continuing. he paid a tribute to the- work of the Young Citizens’ League, which he believed was meeting that day, and he solicited the support of his audience towards the institution. The work that was being done by the league would bo for the benefit of the rising generation, and consequently for the country as a whole. The young nvn who joined it would l>o all the better citizens in after life for the comradeship and other opportunities tho league offered. Alluding to the financial position of Iho Dominion, Mr. Massey said he did not deny being an optimist. Ho would back an optimist against a pessimist every time —against half-a-dozen pessimists for that matter. (Applause.) Tho country was passing through a time of financial stringency. Tivevylx>dy knew that,® and we were ,doing our best to meet the difficulties that had arisen. He hoped that before long he would bo able to announce that we had got through cur difficulties satisfactorily and successfully. That time had not yet arrived. Mr. Massey went on to sny that the war involved New Zealand in very heavy financial responsibilities. Tho var .dclit was oiehty-six millions, and in addition we had had to provide pensions for incapacitated soldiers ond for dependants of those who had fallen. He had to find interest and sinking fund upon a large sum of money that we had borrowed. Also, on account of the high cost of hvwas now coming down, not rapidly? hut steadily—we had Ind to provide additional .salerias and bonuses for a very large number of nnopl* employed by the Government. . ”IVe can’t.” Im continued. "repudiate nnv of those thinirs. As tlnio Lh<' Pensions Bill will nroFnWv not b® so h-avv. blit to the present there is no d-'cre.n=“. We have got bo meet the ainkin" fund that is a debt of honour. With rc-mrd to bonuses in existence. T don’t think that tho. time has auito arrived to deal with them, but I do not anticipate any diffigerman reparations. Mr. Massey added that against the war debt the Government had twenty millions invested out of accumulated surpluses. The greater part of it was invested in New Zealand land—land purchased for returned soldiers—and tho security was quite good. Even now. if the Government had to put this land on the market right away, it would’ get back every penny it had put into it. Two millions of the total were invested in reserve fund securities kept for emergency, and (they could become liquid almost at an hour’s notice. Touching the German reparation fund, he said he’ could give, no guarantee as to these payments beinff continued, and pe did not want to be too confident; but New Zealand’s share was 26 millions, spread over 30 rears odd. Tf thci'o was a certaintv of getting the-o twenty-six millions'in addition to the twenty millions inverted out of accumulated surpluses, tho Dominion should he out of its difficulties right away, in suite of the low prices of) produce. "I believe,” he remarked. “that Germany is able to pay, and wiil continue to pay, and she is paving right now.” The country’s present troubles arose out of the fact that tho purchasing newer of England—our bort customerhad- decreased. Even since he had returned to the Dominion, an improvement had taken place in this respect, as the price of money would show. Ho quoted tho particularly good' price, received for tho Dominion’s supplementary loan, and said that this was an indication that money was becoming cheaper and more plentiful. With more money in the hands of our customers prices for produce would improve. Personally, he could see no reason for pessimism. He had predicted a fortniht mro that indications went to show that there would be an increase in the price of wool. A great many people then said that ho was too optimistic. What did thev find. however? Only that week a cablegram recorded an increase of 15 per cent, in the price of wool, equal probably to a million and a half on the whole New Zealand clip. He hoped and believed that thfy would get better prices presently. THE WOOL POSITION.

Mr. Massey said that be had taken the opportunity of looking into the prospects of the markets tor tho country’s produce. AVhile disappointed in some respects, he considered the Dominion was doing fairly well except in the case of wool and beef. The bottom was, of course, out of beef, but this did not affect the Dominion as seriously as the price of 'wool. Butter and cheese and lamb were fetching fair prices, but we had got to take things as they came, and face the position. Giving hia reason whv lie believed tho price of wool would increase in the future, he pointed out that there were to-day 100.000,000 less sheep in the world than ten years ago. Tho wool stores in England were nearly all empty, and at Bradford tho manufacturers hnd admitted to him that they were living hand-to-mouth, q'here was, of course, an accumulation of Imperial wool in England, but as soon as the manufacturers found out that there was no fear of this being placed on the market at any price they would stock up. In America 'manufacturers were in the same position, only for a different reason. They were faced with a Wool duty, which thev believed to be only temporary, and they would not stock up until they found what was going to eventually happen with the tariff. As soon as the American manufacturers were relieved of this suspense they would be in the market for wool, whether there

was a duty or not. Then, again. Argentina was absolutely going out of sheep and stocking up with beef. _He had’it from the very best authorities that there was no more wool in London than one would find in the stores under normal conditions. It was easy enough in those to predict that the price would increase. He had already predicted one rise which had taken place, and he hoped that it would go on increasing. , TREND OF TRADE. Interesting reference was next. made, by the Prime .Minister to the Dominion’s trade. Figures he had that day received from the Customs Department covering tho eight months of the year were very encouraging. He recalled the tremendous importations made during last year, remarking that every store in the Dominion had then to be packed to the roof with goods. This had led him to wonder what was going to happen to the Customs duties this year, but tho latest figures showed that the difference between the two years was not nearly so much as he had expected. In the eight months of 1920, the total imports were £35,51(1.(100: in the, same period of 1921 the amount was. £32,670,000. The exports in the 1920 period were £31,087,000; in 1921 they amounted to £34.,G5i,000. These figures were wonder-' fully good and much better than he had anticipated. They showed that the people of New Zealand were getting back to work. - They were taking their coats off,’ add when New Zealanders got to work they were hard to beat. (Applause.) CHANGED TACTICS. Speaking in another connection Mr. Massey reminded his audience of the phenomenal shortage of coal that had existed when the railways and industries in the Dominion were living 'hand-to-mouth. That was not so very long ago, but during the last six months the coal people had changed their tactic. At any rate, they were producing more coal than they had for many years past. In fact, bo believed that sufficient coal was being produced within the Dominion todav to keep the country going lh» was a splendid Thing. Unfortunately, -he Government aud some private concerns were at present bound by contracts to import coal. The Governments eon-, tract however, would soon end, and ao a'matter of fact they were using some New Zealand coal now. He hoped that private firms, who had mace contracts . . for overseas supplies, would turn round and buy t’heir coal from the New Zealand mints, as soon as their agreement* W expired. With ovm 200.000 British miners permanently out of work he felt tbit if New Zealand wanted more, miners it would not have the slighte t difficulty them. He hoped that we would treat them well and provide them ,®ith the best possible conditions if they came out here. All no migrants coming out to the Dominion had been well selected. In stating that England was n hUy popular with New Zealanders thel rime Minister said that when he left the Old Countrv he believed there were near 1V a thousand Dominion residents ui the Motherland. England, with all Ms h _ toric associations, was a delightful cou - try especially in the summer tune- If ever the country gives me a (laughter)—and I have health and strength,’’ remarked Mr. Massey “I am going to spend a few months looking up historic spots in Britain, and I be as interesting as anything I have ever tackled.” Mr. Massey .concluded with an interesting reference to naval problems in the Pacific, which are imported in another column. He w heartily cheered on resuming lus sea-. In order to prevent violations of the prohibition law in Ontario, the Cvovernment of the province has announced that it will be illegal for doctors to issue more than fifty prescriptions for alcohol per month.