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Hawke's Bay Herald-Tribune, Volume 81, Issue 57, 30 November 1937, Page 6

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Comprehensive Review of Situation MR. BURKE'S ADDRESS TO GROWERS Without dipping his hrush into th® hright colours to give unnecessary "fcrightness and extravagahce, a picture depicting a hopeful outlook for the next few years at least for New Zealand fruit in the Old Oountry, was painted "by Mr A. It. Burke, representative of Meesrs J. and H. Goodwins Ltd., of Ijondon, at a meeting of fruitgrowers of Hawke's Bay in Hastings last evening. * Indications definitely pointed to a continuation for several years to eome of the industrial prosperity that was now heing enjoyed in the United Kingdom, h.e said, and with a levellingnp of the prices of commodities fruit would henefit to the extent that there would "be a reasonable rise, though not a hig or spectacular one.

With ja view to ascertaining something of the future from the developments that have taken place in the past, "Mr Burke briefly compared the general situation and position as it was jnst over five years ago, when he was previously on a visit to New Zealand, with that prevailing at the present time. Five yeaTs ago. he said, the depression was smothering industry, prices wexe down to the bottom, few indtfstries, if any, werfe maMng money, and generally the position was very aeiious, if not a ealamity in somo countrles. "Even then, however, there were a fow people who could see, or thought they could, a break in the clouds, and they encouraged others to have the gnmA outlook," he said. "To-daywe have an entirely different position. Commodity prices have risen, industries are worhing alxnost to fheir full eapacity and making a profit. The industrial position in England at the present time was never hetter since 1914, except of course for those few abnormal years immediately following ihe Great War. "The indications are that the present prosperity in England looks like continuing for several yeaTs to come, ' ' he declared. ' 'Prices have risen; in some cases they will probably rise further." He admitted that there had been a,few "incidents" that constituted rather disturbing factors for a brief time, such as nncertainty in the stocks and shares market, but he contended that these were but a passing phase. Their cause^ lay more in the activities of speculators than in the weakness of the country generally. " The main disturbing factor was the development of any serious international trouble Qn the Continent. Frospsrous Industrial Pomtic^i i "Assuming, however, that no such international happening eventuates," said Mr Burke. ' 'it is reasonable to oay that the country is in for a continuation of the present prosperous times for several years to come at least. The prosperous industrial position in the United Kingdom is of major importance to New Zealand, for while you have a free market with a strong industrial position you have the chance to dispose of your stocks at reasonable and satisfactory prices. ' ' While granting that the United Kingdom was suecessful in weathering the depression, thanks to its _tremendous wealth, an elastic banking system and judicious social legislation, among other I'actors, the speaker admitted that it took toll on the people. Millions were oii the dole, more were working parttime, a large body of traders found diffienlty in carrying on, and that an extensive community who relied npon their income from dividends and investments found the former shrinking and the latter dwindling to an alarming extent. "It has been said, however, that -the British are not a thrifty nation. That, as a generalisation, is not true," said Mr Burke. "A vast number of people do try to save, and it was their savings that provided the shock absorber during the depression." The speaker said he was referring now more partieularly to what is known as the middle class of people in the Old Country. They were not so hard up that they had to change their apparent standard of living. What they had to do was to economise. They went through the -stressing times with less oi the apparent luxuries of life and their savings got eaten up. During that XJeriod fruit — apples, oranges, bananas and pears— became looked upon as a neeessary part of the daily diet, and in consequenee there was no lessening ia the demand; rather was there a very slight increase over the past five years. The most impoxtant factor was that fruit was eheap. It did not suffer under the household economy axe as did other commodities. "It is signifieant, ' ' he said, "that taken over the whole period there was not the same in rednetion in the price of fruit as there were in Other commodities." Conditions were much improved today for money was easier, employment was more plentiful, salaries were rising, dividends were perhaps more generous, certainly more reliable, and generally times were prosperous. "But I think you will frnd that a considerable part of the extra money will go first into the replaeement of househol/1 necessities, such as had to be gone without in the depression times,,' he' said, "and most important of all is that the 'nestegg' is being rebuilt in anticipation of another rainy day. For all that a good deal of extra money is being, and will be spent. Fruit No Novelty. "As far as I can see, however, fruit ha» not, up to now, xeape'd any beneflt from the improved economic conditions." said Mr Burke. He attributed tfcifl lftQEete to the fact that frpit

no noveRy, being availal'le all the year round, and except for the brief period when there was a new crop or a new variety, there was not the appeal of the novelty in the marketing of fruit. "Tliere is. no special draw about fruit, except its cheapness," he added. "You must remember that we are passing through what is not exaetly a

normal state of affairs. We are lookmg a bit to wards the novelty' at the present time. My feeling is that soon we-shall get baek to a more normal state. Values will level up more and in this levelling lies your opportunity. I.don't expect to see spectacular rises; in iaet, I don't expect any big rise in prices, but I do tiiijtik you can look forward to a general improvement and that truit prices will become in more correct economic relationship to those of other commodities, such as meat. lish and butter. - "You must remember that in Great Britain the market is fully supplied. It gets the world 's best fruit and any | slight increase rnay cause over-supply, I with consequent falls in prices. But j there are potentialities for the improvement of your market there provided you nurse that market, and here let mo say that yolir voluntary quota arrangement, to my mind, is one of the finest things*that you* have dDne," he stud Ib coaelufiionu