BETTER OUTLOOK FOR NEW YEAR

Dominion, Volume 28, Issue 82, 31 December 1934, Page 8

BETTER OUTLOOK FOR NEW YEAR

Messages From Three Political Leaders

CLEAR AND DECISIVE SIGNS OF DOMINION’S RECOVERY

National Problems Still To Be Solved

Leaders of the Coalition Government and the Leader of the Opposition have issued separate messages as New Year greetings to all the people of New Zealand. Both Ministers foresee better times for the Dominion and look at problems with cheerful confidence in their vision. Mr. Savage takes more of a pohtica view of conditions and urges the need of solving the problem ot distribution. ’ - , . The Prime Minister, Rt. Hon. G. W. Forbes, says that trade figures up to the end of November tell a cheerful story of progress and point the way to a confident anticipation of the probabilities of the future. Exports showed an increase of no ess than £7, 860,000 over the figure for the corresponding period in 1933. “Balancing the good against the bad . . . there can be little doubt that conditions are everywhere definitely improving” 'He adds, however, that “it is not going to be all plain sailp in" in 1935. The main problem to be faced is that of markets. As Minister of Finance, the Rt. Hon. J. G. Coates says that after three years and more of world-wide depression and anxiety, we have'seen during 1934 clear and decisive signs of recovery. “We are entitled to feel gratitude and confidence. But the problems’remaining are such that we cannot yet slacken our efforts.” The Minister pays tribute to the courage and patience of the people in standing up to their difficulties. Referring to trade problems, Mr. Coates emphasises that New Zealand cannot afford to sit back and hope that the traditional policy of, letting events look after themselves will carry us through. Mr. M. J. Savage, Leader of the Opposition, suggests that “there should come with the dawn of a New Year an awakened consciousness which will destroy forever the mistaken idea that the spectre of poverty among plenty is natural and inevitable.

PRIME MINISTER’S MESSAGE Better'Times in View PROBLEM OF GLUTTED MARKETS The Prime Minister, lit. Hon. G. IV. Forbes, in a New Year message, says:— Once again a New Year is upon us, and I am confident that the coming year contains much more of hope and promise than we have been able to look forward to for a very long time. '■ New Zealand, though less affected than most countries, has nevertheless shared to a distressing extent in the economic ills that have afflicted the whole world for so many years past, and many of our people have Buffered severely from the effects of world-wide conditions over which neither they nor, indeed, any person in this Dominion have had any effective control. The country has come through the worst of it in a manner that reflects credit on all, high and low, fortunate and unfortunate. Those many- people—and those not the least deserving—whose misfortunes have required public as\sistance, have had their needs met by their more fortunate brethren in the best British . spirit of kindness and generosity, and though hardships have been inevitable, I think we may claim that the measures that have been adopted with the whole-hearted approval of all sections of our community have sufficed to mitigate the more serious effects of unemployment which have been experienced in many other parts of the world. “Not AH Plain Sailing.” It is not to be all plain sailing in 1935. The main problem that we have to face is that of markets. We have recently seen a serious diminution in the value of our wool (though mutton and lamb appear to have satisfactory prospects), while we hope for the best, but we cannot ignore the question as to whether we will be able to continue increasing our production of dairy produce with the confident anticipation, as in the past, of being able to sell our whole output at payable prices. Marketing conditions in the Old Country are changing radically, and thosechanges are bound to be reflected here We must set our'national house in order and organise our main producing industries with the utmost care. The Agriculture Emergency Act recently passed by Parliament is a definite step in that direction. We have been engaged in lengthy discussions with the British Government as to the best solution of the present glutted market problem, and we hope that a satisfactory arrangement will be come to. ’ We have carefully investigated every aspect of the dairy industry by means of a Royal Commission, and with the willing cooperation of the industry itself we feel sure that we will be able to meet the new problems to the best advantage of all. We have under way measures for the adjustment of rural finance, a means of still further assisting the great primary Industries on which the, prosperity of the whole Dominion so largely depends. A Cheerful Story. Figures are dull things, but when they tell a cheerful story of progress actually made, and when they point the way to a confident anticipation of the probabilities of the future, they are worth some study. During the 11 months ended November 30,1934, the total value of the exports from New Zealand amounted to £44,750,000 in New Zealand currency, an increase of no less than £7,860,000 over the figure for the corresponding period in 1933. The total value of the imports into New Zealand has also increased, the figures in New Zealand currency for the same 11 months’ period being £28,490,000 in 1934, as compared with £23,370.000 in 1933, an increase of £5,120,000. The total number of men wholly or partially a charge on the Unemployment Fund is nearly 16,000 less than it was at this time in 1933, and another cheerful indication is the phenomenal increase in the number of people travelling during this festive season, which clearly points to a return of confidence. Retail sales during this Christmas period are reported to have been the best for many years past, and generally I think it can be taken for granted that business in New Zealand is at last, and quite definitely, taking an upward trend. Indeed, this seems to be true of the world as a whole, and especially true of our Homeland, and our main

market—the Uniteci Kingdom—where there is a marked renewal of confidence and a buoyancy that has been largely absent during the years just gone by. Looking at the position from the point of view of the Dominion’s agricultural potentialities, we find the sheep industry, so important to the welfare of New Zealand, in a sound position. The ewe flock is being built up, following a drop during the acute'stages-of depression, and the'number is now equal to the peak year of 1930. Record Dairy Production. In the dairy industry we find that the herd has been increasing by about 100,000 cows per year, and production during the season 1933-34 was a record. For the current season, however, a lower production is to be expected owing to climatic conditions, and unfortunately values are on a much lower scale. The production of the pig industry has shown great development and the fruit industry also is maintaining its output. From the production point of view the position of the Dominion is sound. Markets are the doubtful factor and even in this respect there can be little doubt that markets will continue to improve as world conditions improve. Balancing the good against the bad, and carefully studying the actual trading figures and other indications of the moment and the probabilities of the future, there can be little doubt that conditions are everywhere and definitely improving. This cheerful movement njust inevitably' be a progressive one and with the increasing return of confidence which must follow we may definitely expect better times next year. I have no doubt at all that we will be able to overcome the difficulties in front of us, and that we can advance into 1935 with a new and heartening confidence that the worst is behind us. ' I wish all the people of this Dominion a Happy New Year and their full share of returning prosperity. VIEWS OF MR.. COATES Reasons For Gratitude and Confidence PROBLEMS MUST BE FACED The foliowiiig New Year message has been issued by the Minister of Finance, Rt. Hon. J. G. Coates:— After three years and more of worldwide depression and anxiety, we have seen during 1934 clear and decisive signs of recovery. Improvement has not been so spectacular or so rapid as might be wished. The problems that remain still to be solved are such that we cannot yet slacken our efforts, bur at the close of one year and the opening of another we in New Zealand are well entitled to feel gratitude and confidence. Nobody can have a part in the government nowadays without being impressed by the courage and patience shown by our people in standing,up to their difficulties. Those on whom the burden of depression has fallen severely and whose misfortune it has 1 been the task of Government in some measure to mitigate, have revealed reserves of strength that augui well for the future of our young country Reciprocal Trade. Indications are that the practice of economic isolation welch is characteristic of many nations to-day will have its repercussions in New Zealand. During the past few years because Great Britain has beet, our main market we have been spared rationing schemes and the imposition of embargoes, which have been the lot of other countries with wider spread markets, but if Germany is to take our wool or Belgium our apples it may be that we shall have to continue reciprocal trade agreements which wit: affect adverse.y our imports from other countries Break from Tradition. I have touched only the fringe of the problem, but it is one which will have to be resolutely faced in the very near future. While other countries are becoming increasingly active, we cannot afford to sit back and hope that the traditional policy of the past of letting events look after themselves will carry us through. If we have eyes to see we can note inevitable world trends and set tip machinery which will fit in with our observations. It is in this way that we can hope for success. Imperial Co-operation. "The New Year is to be marked by the Jubilee celebrations of their Majesties’ reign. We arc thus IN-

minded that it was on the occasion of two earlier jubilees, those of 1887 and 1597, that the practice of British Imperial consultation and co-operation was formally established. Two later conferences in 1902 and 1911 were associated with coronations. There have been many changes in our problems and in the world outlook since then, but these changes have been in the direction of making Imperial co-opera-tion ever more necessary in the common interests of all parts of the Empire. In our Imperial relations, be they economic or otherwise, it is inipossibl'e to contemplate failure. At the same time it is possible without too great misgivings to admit that there are immediate and unsolved problems that call for attention, for we are aware, however difficult obstacles may seem, that they can be dealt with in a spirit of goodwill and co-operation. ’That, I think, is the keynote of the attitude which, as a' country, we should adopt in entering upon the New Year. “To all of our citizens I extend.my best wishes for the New Year.” OLD ORDER CHANGES Message. From Opposition , Leader “MOULDING A GRANDER DESTINY” In a New Year message the Leader of the Opposition, Mr. M. J. Savage, says:, “\\’itli the dawn of a new year should come an awakened social consciousness which will destroy for ever the mistaken idea that the spectre of poverty among plenty is natural and inevitable. There are signs on every hand that such a consciousness is awakening and that a changing order Is destroying the foundation upon which rests the idea that periods of industrial depression are bound to come in the natural order of things. It is now becoming' apparent to all that the modern problem of poverty is created by man and can be abolished by him in accordance with his ability to produce and equitably distribute the necessaries of life. Problem of Distribution. “The problems of production have already been solved. The problem of distribution is the only real problem that remains with us. With almost unlimited possibilities in the various spheres of wealth production and distribution and the right to be masters in opr own household we should enter upon the New Year with stout hearts and determination to mould for ourselves a grander destiny than has been the privilege of any other race. It can be accomplished without doing injustice to anyone. It cannot” be neglected without inflicting grievous injury to thousands of our own flesh and blood. “The call of the New Year will be for recruits who are willing to serve their fellows with the season's greetings.”