The Guardian AND EVENING STAR, With which is incorporated “The West Coast Times.” SATURDAY, FEBRUARY 19th., 1921. THE WEEK.

Hokitika Guardian, 19 February 1921, Page 2

The Guardian AND EVENING STAR, With which is incorporated “The West Coast Times.” SATURDAY, FEBRUARY 19th., 1921. THE WEEK.

Tun .Ministerial visit has hern the event of the week. Mr Massey who was favoured with Prince's weather, go* over the ground with considerable speed and spent some very crowded hours of business with us. Tile stay, of course, was very limited, for the jaunt to the Coast was just a few days snatched out of a very busy week in which the Prime Minister had to begin to prepare for his departure for England# The visit was not memorable for any outstanding event, nor for any gilded promises. Mr Massey’s address did not break much fresh ground, neither did he indicate any new policy proposals Tf there are any in incubation they will remain so for some time, for there will not be a business session till October The address was on stereotyped lines, and its special points were the references to financial matters. In regard to this subject, it is clear that as Minister of Finance, Mr Massey has his anxieties. The money market is very difficult. i The revenue in certain branches in the immediate future is uncertain, because markets are unstable. Taxation is heavy, and there is an insistent demand to reduce it, and naturally Mr Massey is anxious to do so. Yet, he feels the general financial position is so uncertain that he is not able yet to make any promises in that direction. Some of the commitments of the country will he reduced next session. That is inevitable with the fall in prices. Also, Air Massey is looking to an increased production. There •are indications of that also. These are factors which are giving the Minister heart for the near future, and makes Mr Massey hopeful.

.It is believable that Mr Massey will endeavour to show some economies in , departmental expenditure from an au- , nual point of view. It is necessary i that he should do so, not only because the eoonomy is absolutely essential. , but eh icily because of the example it will be to others. He has been preachi ing economy for some time now and I he should practice it also. Air Massey , has issued his directions in that respect, j and no doubt he will expect some material results. This will give him a , useful plank for his next financial statement, because on his own showing of the monetary outlook, it is imperative to curtail expenditure. Afr Alassoy frankly admits at this stage that the raising of money by loans in the immediate future will be difficult so far as cost or a low rate of interest is concorned. This is not altogether deplorable. Rather, has its advantages in checking extravagances or a desire to go on spending money as long as the commodity can be obtained easily. It will do the country good to practice a little thrift, and it will be of value, too. to be more self-reliant. Thore are many things and numerous works the country requires, but reason has to be exercised in all things and if the money is not available this year, patience will have to be used till the conditions are

such that the money can be obtained at reasonable rates. Mr Massey is showing practical wisdom in acting on these lines and the country will reap the advantage a little later, by waiting patiently for, the improved conditions which are certain to edme, following the readjustment of trade and prices, and the return to more normal times again. There are signs that the productions are going to be well maintained. Mr Massey quoted figures as to the great increase in value of the dairying pro- , ducts. What will help production more than anything else is not enhanced j prices, for those above a certain figure ! lead to unsettlement and irregularities j in markets, but what will help is a return to a normal and stable market price. The producer will then not be tempted to jump from dairying to stock raising; from wool growing to the meat trade; from wheat to some other fodder. These fluctuations affect the supplies so materially that the result is to create - false markets and produce false or temporary prices. Take dairying for instance. A little while ago the swing of the prices, created a rush for cheesemaking with the inevitable result that th e butter supply fell off. Now

cheese is having its glut, and many of the Factories are changing back to butter. There will, as a consequence, be a more aijjple supply of the latter commodity and that fact will ensure stability in price. Where supply and demand are in unison there is a better staple price to be obtained all the season round, and for a country such as New Zealand that is much safer and sounder business than the fluctuations in prices which otherwise follow a glut in the supply or a bearing of the demand. Sound, steady business is the safest all round, and in course of time we will get back nearer to pre-war con ditions in this respect. The geLrieliqtiiok methods which the United States farmers sought to adopt have led to a grave financial disaster in America, and that is an instance of the views we have been referring to, and which it would bo wise to slum if the country as a whole wishes to do its trnde on soundly economic lines.

But we have got away from Mr MasKcy's savings and doings here. Of bis speech the most important moments w(',re those in which he referred to Mr I.loyd George’s telegram calling himself Hojine. There has been a halo of mystery thrown round the message by the manner it which it was first, given to tlie country. As Mr Massey read out the telegram one wondered why all the mystery why the secrecy which was sought to be imposed ? It was a very ordinary message couched in quite tlie ordinary terms for such an invitation. Afr Lloyd George “trustc.<l”r earnestly by the way, that it would Ik* possible for Afr Afassey to be in England next June for the Conference. Mr Lloyd George “considered" the Conference would have to discuss (which was not important), and decide (whidh is important) vital questions to the Empire. Necessarily for an Imperial Conference with representatives drawn from all parts of the Empire the questions would be of vital interest, and it is to lie expected they would deal with defence, foreign policy etc. So far the telegram of invitation is not of pressing importance; but in the final sentence Afr Lloyd George says “I feel it would Ik* a great calamity if we were deprived of your experience and advice.” This,,of course is a compliment to Air Afassey and it should not be ignored. Still, it would be interesting to know whether • Air Lloyd George was aware, that failing Mr Afassey attending, iheVc would be in England next June such henchmen of the Prime Minister’s as Sir James Allen. Sir William Hcrries and Sir Francis Bell. Tf knowing this Mr Lloyd George preferred Afr Afassey then the Premier should go at once, but it appears almost worth while enquiring to what extent the British Prime Afinister was apprised of the position.

In touching briefly on local matters, Air Afassey made the pleasing and we hope definite announcement that "within a year, the rails will be laid through the Otira Tunnel.” Air Massey appeared to recognise to the full what an impetus through railway traffic is going to give the South Island. It is good, to know this, and we hope the Prime Afinister will associate himself with Afr Coates in working untiringly for the most speedy completion possible of the line. 'Hie position is simplicity itself. Ther 0 are the two ends of the East and West Coast railway. One end is at Arthur’s Pass and the other at Otir!i. There is a break in the connection. A great through trade will be possible when the two ends are linked up. This trade will }>o of enormous benefit to tile country It is going to serve two great communities, one the complement of the other in that what one wants the other can supply and vice versa. This trade will spell business and profit for the rail-, way carrying on the transport, and in that the Government will participate richly. The conditions are all in favor of speeding up the completion. The stage is set, and everything almost is in readiness for the play to proceed The actors are at call, the audience is there to applaud. But there is just something wanting. There is no floor on which the actors may perform. It is a very little thing, but it prevents the play. Will not the Government step in and seek to provide as quickly as possible the missing connection? Speed up the works by every means possible, and the result will ensure a great performance which will be to the credit and renown of all concerned The oou.njtrv awaits the •Government action.

Thk fact that the President and Organiser of the Canterbury Progress League took the trouble to come across with the Prime ATinister, and give four days of their valuable time to the affairs of AVestland, indicates that the interests of our friends across the ranges in the affairs of the West Coast are very real and earnest. There were examples heretofore of the awakening interest in Canterbury for the old Const, and the visit paid this week makes a very notable showing of the fine spirit existing between the two peoples. Coasters should, and we believe are very grateful for this fraternal friendship. A practical union appears to have grown up in, as it were, an unsought manner. The two peoples found that they had something in com-

moil, and this bond of interest sudden- 1 lv became a silent means of perfecting a quick AVestlanders must remain ever grateful for this close association. We complain very often of our isolation, but lack of population contributes very greatly to that condition. Numbers count where representations have to be made, and hitherto we have been but a very small vain. Now with the help of our Can- j terbury friends we can make a very j good showing in numbers, and noise, j The Canterbury Progress League is a , live organisation, run on very active lines. With the leaders of tlie League with us just now, we have an in- I stance of tlie thoroughness in which the | body discharges its work. The gentle- , men who have been with us Messrs j Henderson and Climie —have not spared themselves in any way. They have been anxious” to help wherever they could, and their work and interest is all for the betterment of Westland. "We 1 should indeed, bo very grateful for this generous proferred, influential help and no doubt it will be appreciated, specially from the right quarter. The bank crashes in the Lnited States are of such a magnitude that their effect, will be felt further afield rather sooner than later. The position in America has its object lesson for the world, and an interesting summary of the business outlook in the United States is contained in the following, culled from a December banking review, Ai.anufacturers, merchants, labour lenders, owners of stocks in railroads and industrial companies—everybody in business—are asking bow long this depression which is spreading over industry is likely to last. Nobody can tell the length of time, but it K not difficult to name the principal condition necessary to a revival. The prices of wlmt the farming population wants to buy must- come down to correspond with the prices of wlmt it has to sell. Until then the rate of reciprocity which is necessary to the full employment of labor and general prosperity cannot exist. The equilibrium must be restored. There "ill he no confidence in the situation until the equilibrium is restored. Merchants are not going to buy goods whim they know their customers are unable to buy, railroads will not bo bought, construction work will 1,0 at a standstill, enterprise will be dead, until a basis of fair exchange for tho products of industries is reached. Tliis is not a matter of resolution, resentment or a concerted action. It results from the character of trade relations," from the fact that all business consists of an exchange of services. What one class of producers does not get, it cannot spend. With trade relations out of balance the circulation of goods must be curtailed. It is said that organised labor is going to stand for the present wage scales. That is a very natural resolution to make, off hand. Nobody likes to take tlie back I track, and nobody should want labour Ito take tlie back track ill any real | sense. A reduction- of wages which i would put the general wage-level lielow the new price level would throw the situation out of balance in the same way that, the fall of farm products lias thrown it, out. Neither the farms nor ! the towns can buy the products of the other except on a basis of fair exchange, and if Die products or services of either are unfairly valued the entire industrial system will be disorganised. AVagcs and farm products went up fairly well together, and it is a mistake to think that, they are not coming down together, for they are tied together by the economic law.