The Guardian AND EVENING STAR, With which is incorporated “The West Coast Times.” WEDNESDAY, MARCH 9th 1921. BUSINESS IN AM ERICA.

Hokitika Guardian, 9 March 1921, Page 2

The Guardian AND EVENING STAR, With which is incorporated “The West Coast Times.” WEDNESDAY, MARCH 9th 1921. BUSINESS IN AM ERICA.

I’mihi • tho dominance of the exchange rates, the stale of business in America is now of great importance l<> the world at large. President Harding has - laid it down as his dictum on taking office, that /‘America cannot huy. where America does not/*sell, and here "o have the keynote to the probable tariff war which "ill rage in American politics when Mr Harding gets firmly seated in office. But theories are all vciy well, till they have to stand the test of practice, and business alter all is the real lesi of all oilr economic problems - lh,. colume .it trade a country can do year in and year out. America has bad stringent times. With all her advantage iii exchange, money is as dear in America as it might well be. Rates are much higher, lor instance than in New Zealand, which, as has been emphasised before, has been in a very fortunate position for some time regarding its lending rates. The cheapness of money in this country has helped tide over the stringency so well heretofore, but the banks and other lending institutions are now putting on the screw and money is growing dearer, and business and other enterprises "ill grow more restricted in consequence. Rut harking back to trading conditions in America, under advice dated December 28, the National Bank of Commerce in - New York issued a statement that the controlling and outstanding factor m the American business situation is the relatively small movement of raw material and manufactured goods even at reduced prices. Consumers are restricting their buying in part because of some curtailment of their purchasing power but more partichilarly because of a willingness to wait until retail pikes effect the lower levels of primary prices. Improvement oi business activity. therefore, awaits adjustment of retail prices to a level satisfactory to the public. This is now under way, and its progress will be hastened by the coming into the market of goods which are already being produced on lower cost, levels for labour and material. The fundamental relationship of banking and business now becomes (dearly apparent. Both are concerned in the pre:<>nt situation: and I lie interests of both demand that the readjustment be gone I through in an orderly fashion so that 1 business activity may be resumed on ! a sound basis. Sentiment respecting ! forward conditions, which until lately bad been almost uniformly depressed, is now noticeably improving in many directions. This better feeling does not ! go to the point of optimism, but there

is evident a degree of confidence which ■ was previously lacking, in the ability

: of commoree and industry to meet the I future and to conduct busi- ' ness with a reasonable profit. What is now required is courage and respect for fundamental economic principles. Artificial palliatives which are being urged with a view to obviating the difficulties of the adjustment - particularly proposals involving further inflation and 'cheapening of credit —must be avoided, for such measures, if adopted, could only result in the impairment of the strength of tlu> credit structure and in prolonging and increasing the difficulties of an adjustment which world-wide conditions have made inevitable, 'film a- ! - vieo also states that the gradual reduction of credit requirements justifies an expectation of moderate easing of money rates, but it points out that cross currents in the present complex business situation make it impossible to forecast when this may be realised.

A good deal of interest will conin' in the short parliamentary session to open

To-morrow. It duration will bo governed by the loquacity of members rather than their deeds, for being a special session for a special purpose, the business to be put forward will be restricted. The main objective is to sanction the Prime Minister’s attendance at the Imperial Conference, at the urgent request of the British Prime Minister. That invitation can hardly bo ignored under the circumstances, and no doubt the House will accept the invitation for Mr Massey. It would appear from a Labor pro-sessional address in Christchurch recently that the Labor party "ill oppose Air Massey’s going, and this opposition is sui>. to lie voluble. Probably the Liberal opposition "ill question Mr ( Massey’s proposed domestic arrange- ! incuts which include the appointment . of the Cabinet Minister in the Lppor | House as the Acting Prime Minister, j If Mr Massey’s mission is of the great j importance it is supposed to be, most j folk would like to see Sir Francis Bell | accompany the Prime Minister as his j right hand hand. It is. conceivable j that complex questions of an interna- j tional character will arise, and just as ) Sir Joseph Ward found it useful to have Sir John Findlay at hand for consultation on a former occasion, so we are sure Mr Massey would find Sit Francis Bell of very useful service in handling momentous international questions. Still, the arrangements appear to be made for Sir Francis to remain and handle the team of colts which now in the main constitute the Ministry. The session is sure to outline financial prospects, and these will bo of restrictive character, so during Mr Massey s absence, ccrtnilment of expenditure rather than its expansion, "ill be enforced. Strict economy must be enforced sooner or later, and the sooner the better if we are to tide over the straightened circumstances of the country as they appear to be overshadowing the financial outlook at present. j Now that, the rigors of tho war period are past, and the farmers and settlers of the district are again in more normal times, the suggestion is being made over and over again that the agricultural®

and pastoral shows should be revived in the district. This is a matter mainly for the country people to take up through their general organisation, the Agricultural and Pastoral Association, and if that body were to move in the matter we arc sure llqiL the townspeople, as in times past, would render active support .both financially and otherwise, Other districts have revived very successfully their annual shows, and seeing the success Westland is making with settlement of late, the annual display hero should he of grßat improving dimensions. Of late, too, the quality of the stock introduced to the Coast has been much advanced, and the exhibits with the co-operation oi the stock owners, could be made very interesting to the public. The local Association is not heard of very much of late, and it would be serving the field of agriculture and stock-raising in the district, it* a move wore made to bold a show next. year, at the latest. It could bo made preliminary to the biggti shows still which will he possible when the Otira tunnel is an accomplished fact, and the prize exhibits from Canterbury will be able readily to find their way to the Coast. Tt would be a. very opportune time now to make a new beginning. With the railway stretching from Ross to Tnnngnhua a large number of probable exhibitors could bo catered for, and we feel sure tho exhibition could he made a very successful annual event. If our country cousins would take the lead in the matter, and show a personal interest in promoting such a show, we are quite satisfied the townspeople would readily respond with generous help. The Westland Agricultural and Pastoral Association cannot do better. therefore, than call a general meeting to awaken interest in the country, and if any appeal he made to the towns people their co-operation on practical lines would ho assured.