LUGUBRIOUS ADUMBRATIONS

Evening Post, Volume CIX, Issue 38, 14 February 1930, Page 8

LUGUBRIOUS ADUMBRATIONS

(To the Editor.)

I Sir,—Some conspicuous men, some insignificant correspondents have delighted themselves recently in shadowing forth something like disaster to this Dominion. The men have only taken a view that is singular. They have struck their usual lugubrious note at the annual meetings of financial institutions over which, they preside. These are the occasions on which they recite their piece or sing their song— always the same piece—always the same song. How often have we heard, "An unweSame and drastic change has unfortunately occurred in the financial and trading conditions o£ the country." What follows? "Work harder, spend less, and practice thrift." That's the same old refrain. What are,the facts? Wool is down. Wool growers will not have so much money to play with. But wool is not as low as it was before the war, and as most primary products have fallen wool is just making a stride among the rest to get back to normal. Is not that the objective? The fall in primary products must sooner or later lessen the cost of living. So long as these declines are not too sudden or too rapid no disaster need be feared, for people naturally adjust themselves to changing conditions.

These lugubrious adumbrations sounded in high places are taken up by the ''Searchlights" and other correspondents with some variations to give their contributions an air of originality. The United Government is attacked for the non-ful-filment of its promises; and one asks, "Whither are we drifting?" While another (;ries "Thrift," and another "The country is concerned." Under the United Government we arc' dn'fting to a sound financial position. Under the previous regime we were drifting to deficit. There was actually a deficit of over half a million. The United Government took a hand, and the result is: "The revenue for the nine months of the United Government's first jeai? jsaa ,i516,335,2i:2,. as compared with

£15,013,863 for the corresponding period of the previous year, an increase of £1,324,----319." Where are wo drifting? Rapidly to a strong financial position. Yet some of these correspondents would fain make your readers believe that a Cabinet that insists upon having the country's ledger balanced is comprised of incompetent business men! Why, they are only applying to the country's affairs the policy and practice that has proved them prudent and successful men.

But again, our people are called wasteful and extravagant, and told they must practise thrift and spend less. It should have been recollected before making such a charge that prices are still high, and the people of New Zealand have attained a high standard of living. Yet with it all they are in the main careful and thrifty. Let me show you. Let mo tell you what they are doing to prove it. In. 1914 when things were normal the depositors in the Post Office Savings Banks mad ninetren millions sterling. In 1929 they had fortyeight and a half .millions sterling. And more persons were Post Office Savings Bank depositors in 1929 than in 1914, and had more money in 1929 to their average individual credits. There are over one million depositors in the Post Office and private savings banks in the Dominion, and if the amount of the fixed deposits with the banks of issue are taken into account the total exceeds £115,000,000— all saved money, interest earning, ttie accumulated visible savings of our people. All this takes no cognisance of the thousands who are saving their money through various financial institutions, building societies and the Government Advances Office to workers and farmers. All these, however, are saving money to spend it. That is not extravaagauce or waste. It is a saving and a spending that makes for progress and prosperity. That is the spirit and, purposein action that has borne New Zealand along the high road of welldoing.

There is really no necessity for the lugubrious adumbrations 'of some conspicuous men and less need for correspondents to pretend to make the shadows living things. And if the United Government has not yet fulfilled all its promises it is still in office, and as Rome was not built in a day, so time may be all that is wanted for the Cabinet to prove its capacity. Suffice it for the present that the finances of the country are on a sound basis, and that the people in the main are prepared financially for any prospective eventuality.—l am, etc.,

J. D. SIEVWEIGHT