THE ECONOMIC OUTLOOK

Hokitika Guardian, 4 May 1923, Page 4

THE ECONOMIC OUTLOOK

Ii;ADE COAIAifSSIOXER OX AIAfX ]• ACTORS.

WELLINGTON. Affix- 2. The newly-appointed Pritish Trade commissioner to Xew Zealand, (,'aplain X. Elm-lie, greatly interested a Inrge gathering of Wellington business men at the Xew Zealand (Tub luncheon "itn f.is clear-cut aualy.-i; of the world's economic position, and its former junction ol collecting intelligent e. lie was here to promote Jiritish imports with a clear recognition that no country could liny without selling. Trade was a matter of barter and exchange. Xew Zealand (oiiki not buy British goods unless Britain did her lust to find a sound market for Now Zealand produce. Any assistance he could give towards Xew Zealand's puvperity. productinu and exports lie deemed a very important function of his office, lie was prepared to cooperate fully and freely with the Xew Zealand Government . i Applause). On the present economic outlook he v.ould say that from what they could s.e in London (here was no doubt trade was improving. All indications were favourable for a. slow, .steady increase, not a boom. They wanted no more booms with a swing hack. There wore disturbing factors. One was the relations between Frame and Germany. There was no question, but that the trouble on the Continent had unsettled opinion, thrown tilings back and generally dislocated trade. A continuance of this European problem was unquestionably a serious factor against a world recovery. Trade depression was an indirect result of the war. but secondarily it was the effect- of inflation. Xo less than 28 per cent, of the accumulated wealth of Great Britain was spent on

the war. The result was an inflation of values through a shrinkage of food stuffs and goods. The effect was not left evenly. The whole standard of living was depressed by having to pay so much for foodstuffs. 'The present, position was due to the fact that the price level of foodstuffs was lower than the prices of goods. This would apply for instance to the production of foodstuffs here, when they had to pay 20 per cent more for manufactures, with foodstuffs worth only about 20 per eent. above pre-war figures. Butter which had recently fallen, was an in-

stanee. Countries such as Xew Zealand were the first to recover front the war. Manufacturing countries like Great Britain were much slower. This was abo true of Kurope. which was not likely to recover for some time to come. Britain was now seeking to compensate for the markets she had lost during the war by increasing her trade will the dominions, upon which she bad always been largely dependent. She was. therefore, very vitally concerned in the welfare and prosperity of her colonies, and it was with the object of increasing emigration and in other way endeavouring to build up relations with dominions that the Economic Conference was being convened. He ventured to think that the questions for discussion to the Economic Conference in London next October v.eic of very vital importance to the Dominion.