The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, SEPTEMBER. 29.1926. THE DOMINION OUTLOOK.

Hokitika Guardian, 29 September 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, SEPTEMBER. 29.1926. THE DOMINION OUTLOOK.

[N a Stanly of the economic position, the Mercantile Gazette quotes the Public Trustee as an authority who has summed up the financial situation of the country in very clear terms. In his annual report, after pointing out that tiie prosperity of the Dominion is indissolubly hound up with the success or o'honyi-e of its primary products, the Public Trustee says:—“The fall in the return from our staple products mav he only a passing result of the operations of the economic laws of supply and demand, or it may, on the tlicr hand, exemplify a gradual return to hover prices and conditions more closely approximating those of pre-war days. Viewing the matter in relation to the trend of produce values generally throughout the world, the latter statement probably represents the .true position.’’ This view and conclusion in regard to the matter is approved l.y the paper referred to. which goes on to point out that a drop in values was all that could have been

expected after the welter of inflation and the extravagance of the past few years. It is obvious that we cannot, let things drift. Something must be done. The spending-power of the people is being curtailed through the fall in prices of primary products, and inevitably there is a disposition to turn to the cheaper imported goods rather than to continue buying the locallymade at fancy prices. The Customs lari If must be revised, and the Minister of Finance has announced that a revision will take place next year. Tho manufacturers are asking tor more protection, but it is pointed out that the customs should not he used as a vehicle for overtaxing the community. The industries want a high tarifT and the producers want a low tariff. The farmers . in particular, must have a low tariff for they contend that a high tariff makes their living costs excessive, makes them pay more for their implements and machinery, their clothing, their hoots and shoes, motorcars. gramophones, and pianos. The ironclad tariff makes the cost, of production high, while the purchasingpower of wool, meat, butter and cheese has contracted. The main point it is desired lo emphasise is that the cost of production all round must he reduced. The tariff is one means of doing that for it will lighten taxation. Wanes must drop or the worker must abandon his limitation of energy and produce up to the full measure of his capacity. Piecework may solve this problem, but that is not possible in all industries. Unless the position is faced and an economic method adopted for the position that confronts us we will be overtaken by adversity, when readjustment? will lie painful. The point is that the cost of production must he reduced, whether tho subject is attacked scientifically and systematically or whether we drift along and he forced 1.0 make the reduction amidst the troubles and anxieties of a period of adversity. The growth of ilm unemployed is rather more than a product of the winter season on this occasion. It is a disturbing factor in itself, and gives color to the repeated warnings given that the Government should face the facts, and meet them in advance, rather than wait for a crash. Probably the Government was hoping for something to turn up, some rise in the price of primary products to retrieve tho position. That is not a very statesmanlike way to hand: the situation. But prices do not show much elasticity and there is the fear that there will .he a fall of something like ten millions in the value of primary products sent out for the year. Probably this is the real cue to tho unemployed problem, suggesting at once that the matter is economic. With the outlook for tho Dominions such as it is. the situation requires the closest study and attention by those in responsible authority.