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Hokitika Guardian, 5 September 1923, Page 2

The Prime Minister departed from our shores last week with a eheery financial message to the people. Ho did that on a former occasion, and he had hardly been two days’ sail away when the aeiing-Ministor of Finance told the astonished New Zealanders that “the Treasury was empty.’’ That Minister h«s not- been appointed Finance Minister on this occasion. But while Mr Massey left us cheerily, and himself in good heart, we must remember that not so very many weeks ago he pointed to loans falling due between this anti 1029 amounting in the aggregate to £00,500,000 —a heavy liability for a population of one and a quarter million of people to meet. At the end ol 1924 the moratorium would cease to operate. Government assistance, Mr Massey said, would have to be given in the general interest then. A huge amount of money was involved in the case of those concerns and individuals who had taken refuge under the moratorium. He believed that it would total several millions. It is generally believed that at least six millions are involved. Some of it is owing by farmers’ co-operative concerns to depositors who placed money with them atshort call, the funds so obtained being used in trading, the borrowing concerns relying on the banks to meet such demands when made. Such support from the banks was withdrawn.; hence the moratorium. In thee© circumstances it may be readily under-

stood that trading is still being conuuotcu in New Zealand on extremely cautious lines. Th© banks have a firm grip on the throttle valve, and every application for an advance is scrutinised with til© utmost care. In a largo number of eases those who gave joint and several guarantees to the banks in respect to freezing works and other enterprises connected with rural activities have been called upon to meet such obligations. Kmbarrnssment has resulted.

There is, however, reason to be hopeful in regard to the future of New Zealand if p; eduction obtains a fair deal. It lias g.eat resources, and there is occasion to bo nojcful about the mar-

of the world. Th© visit of tho Prim© Minister to the other side of the world will be no mean advertisement for this country, and will servo to keep New Zealand and its wares well in mind. Mr Massey's slogan for “production, more production, and still more production,” might well continue to ring through the country, for the markets will be found, ind wealth will flow into the Dominion accordingly. There is no reason why Westland should not from henceforth, play a larger hand in t! o {induction of wealth-earning commodities which are in demand overseas—whence must come the relief to the country’s finance. Wool, beef, mutton, butter, cheese, and all by products, from now on can be produced in larger quantities in this district. Iho Midland railway affords the opportunity for direct transpoit to an oversea port whence surplus products can be sent away, and added to the value of the country's material exports. It is tho surest way to overcome the financial difficulties besetting New Zealand, and to reduce to a minimum tloubs as to the ability of the country to surmount tho financial trials which are in sight.