DOMINION AND EMPIRE

Hokitika Guardian, 6 April 1922, Page 4

DOMINION AND EMPIRE

INTERESTING LETTER FROM LONDON MERCHANT.

“NEW ZEALAND KEPT ITS

HEAD.”

A GREAT WAR EFFORT

WELLINGTON, April 8.

“New Zealand stands very well at Home just now,” writes a London merchant to a prominent business man of Wellington, “and there seems to -be a big opportunity for trade—provided of course, that labour and financial conditions do not materially change, and provided also, that business people genarlly will recognise that the continuation of pi«-war conditions means in the long run stagnation of trade—and ruin. Tllfe IMPOSSIBLE.

“To me it seems inexplicable that so many are endeavouring to achieve the unattainable. They have been enjoying a period of (shall I call it?) artificial prosperity that many have deluded themselves into the belief that this state of things would last for ever. They forgot to provide for the aftermath of war, and now they are paying the penalty that is always exacted. They forgot that the nation was at war and that the enormous increases asked for and obtained were merely due to the fact that the war was on, rtnd that extraordinary national conditions brought about extraordinary trade and commercial oondiditionß. The Armistice came so suddenly that many were caught napping—nodding contentedly, basking in the sun of wonderful (but abnormal) prosperity. I know of one firm—and there are many others—which must have made a profit of close on a million during tho \Var. It was quite legitimate trade, but they did not make provision for th e slump, and the business now stands with the war profits gone and a debit of nearly a million. There are others and the financial world will probably hear some more resounding crashes. “NEW ZEALAND KEPT ITS HEAD.” “That is why 1 am glad, to see that New Zealand (and Australia) has not lost its head Of course, you made huge profits during the war, but it was made mostly out of supplies, and your industries (other than primary) did not expand and prosper as was the case here, and in France and America. The Yanks have bad. the best end of the stick, and no one who understands the true position, and the difficulties that beset them (and had to be overcome) before they were able to participate in th war, will grudge them the full fruits of their labour and capital investments. A SPLENDID EFFORT.

“I say—and I say it with some knowledge of the position we were placed in in 1017 that if the United States bad not thrown in its full weight men, ships, money, supplies and influence,—bn the side of the Allies the price that we would have had to pay for victory would have been much greater—in loss both of money and men—than it was when the welcome end came in 1918. It was a great and glorious effort on their part. Had the positions been reversed. and we had been placed in the peculiar and dangerous position the United States found itself in, we would havb taken just as long to conquer the enemy within our lines and put our full weight and power into the conflict. And even with the creditor nation as with the debtors, th« slump has hit them badly—almost as badly as we have been hit here. NO UNDUE PROFIT.

"But I am getting away from the subject x commenced to write about. Now Zealand’s reputation stands well with us at present, despite the fact that your labour conditions prove a sore perplexity at times. High freights of course, will not only discourage trade, but it will hit the people hard. So long as' your producers will not seek to unduly profit at the expense of England, all will be well. These people have displayed a dogged courage, a calm resignation and optimism and have made enormous sacrifices that Britain may in time emerge victorious from the war. I am speaking quite apart from the clash of anna and terrible slaughter of that awful period. So long, I say, as you peoole will recognise .that fact even in your trade dealings so much quicker will the great day arrive when the British Empire and its far-filing Dominions will enter into a period el permanent prosperity. You depend upon us just as much as w c . depend upon you.

“A WONDERFUL PARTNERSHIP.” “And now, before entering into the usual business details, let me conclude this somewhat unusual preliminary, by saying how grateful w c all are, and ever will be, for your Dominion’s valuable assistance during the war. It was a truly marvellous effort—over 100,000 of your best men a§ soldiers and the whole of your resources placed at the disposal of the Motherland. In such a solemn mater as this one cannot- one should not—make comBut it can be truly said that in the great war New Zealand played great part—and proved itself well worthy of inclusion in this wonderful Empire partnership.”