The Guardian (And Evening Star, with which is incorporated the West Coast Times.) THURSDAY, DEC. 6th, 1928. THE ECONOMIC SITUATION.

Hokitika Guardian, 6 December 1923, Page 2

The Guardian (And Evening Star, with which is incorporated the West Coast Times.) THURSDAY, DEC. 6th, 1928. THE ECONOMIC SITUATION.

Wii.vTKVKit the icsiilt ot tlie lbitisli elections, there will still follow niiieh talk and protracted discussion on the subject of Empire pi-'fereiice. Wtieu the .subject is probed deeply us t>, its economic bent ing, many qualm.- ot' fear

t sin: expressed sis to contingent possilt- | ilitios. It is wot going to lie an e:isy j nisiLter to Milw a question, which, ) though affecting directly the internal ) government id the F.mpire, hits it henriniiml iiitlueiiee on the outside wnnoinic s>tlisttion which will he relict ti ed nt Home and ovetseas where preIvrcnco prevails. For this reason n whole hearted system of [> re fere nee within the Umpire will never lie, belli n.-e it is plain now it would be impolitic to establish it as a definite and I exclusive policy. The results would l.e too distill hint; to justify the complete | action. Speaking at Christchurch last ween Mr ,1. B. Condliire, wlio will he reii.embeied heie because of hi.s interest in; addresses at the winter school on economics, expressed the opinion that neither Great Britain nor New Zealand had anything to gain from Imperial pieforente or protection. 'While it would do goad to some of the Dominion’s minor industries, it would tlo more harm to the' Dominion’s best, mat bet the B.itish market—for the reason that it would cheek Great Biitain's trade with other countries and cause a dislocation of trade in Great Britain. With that attitude on the subject in mind, it will be interesting to follow a icpoit of Mr Condliffe’s recent address, largely on the same .subject, as supplying food for thought on this highly important national question. In speaking of the economic position within New Zealand, the Professor said that a boom in imports was developing at present, similar to that which caused a great deal of trouble three or four years ago. He did not think Hint there was much necessity to emphasise the danger from this boom in imports. By means of a diagram the speaker showed the manner in which imports and exports Tiad risen and fallen year by year since 1904. 11.- .said that the period from 1910 up almost to the outbreak of the war was one of the dangerous periods in the history of the Dominion, imports Icing in excess of exports, and heavy borrowings were going on. During the past two years the tendency had been for export values to improve, am! now- the corresponding improvement in imports was beginning. The position was that so much importing was being done that if. in the near future, the values of exported goods fell, they were goiiv; to have a posi- ' tion similar to jhpt of 1921. T'ber*

was mi interval between the rise in price of exports before the corresponding rise in the pi ice of imports; when the price of exports rose the farnici. got the benefit; hut when prices ot exports fell the farmer got the ii.st impact. At present there'was 7. tendency for Hie farmer’s tost to fa linages, for example, and a good many mateiial.s were falling. But this was accidental it was a thing of the moment, mid would not last. He could, ) crimp-. diive home the caution lie wanted to title; by taking the price of wool a l present. The lise ill prieo wm- cxtieinelv gialiiying and heiielicial not only to the farmer, hut also to the whole community. Bui it was not permanent and lie felt, that there was much in the remark made to him hy t ile of the leo,i expert wool t,inkers in New Zealand, that lie could not .see the present pi ices for wool eonti.lining, In could not see I la- condition m the market that would justify pie-nit I rites i on! inning. The pieseiit position in regard to wool was due u> a,n acute slmitage in cotton Blue to tub ravages ol the he|| weevil), and to the Japaneses disaster causing a dcciease in the

r- I ■.. a-, of silk. Another strong source ot demand was the heavy buying for Kiunce. Professor Cnmllill'e ipioted Horn an American writci on economies

- Dr. Andeison to show that the position in lie- lluiled Slates as rcgaids agricultural and pastoral indiistiies was much similar to the New Zealand position and that the unsettled condition of Km ope was i espoiisilde for the position of the agricultural industries in the Foiled stales. It-Tciiing in the Europ. an | osit ion, Profe.sst.r (ondlille said that Europe could not go on Inlying wool at its present price, and he quoted figures to shew that, in respect of food stiills, the ehea| er articles "vie in girnier consumption as eoinp.ireil with the pre-war stale of a Hairs. He also leicrictl to the dillienlties coiineeied with the 1 1c Hut ion of currency. He luiiclude, l with some remarks on rural credit and marketing; icspeeting the lirst he said that to put further in; it;;| into an industry w hich wax sidle, ing 11 oiii ten much capital would do mere harm than good; and n—peeling the se.-ond. t hat attempts to ke,']> up prices hy polling were doomed to failure.