The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, FEBRUARY 24, 1927. THE GENERAL OUTLOOK.

Hokitika Guardian, 24 February 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, FEBRUARY 24, 1927. THE GENERAL OUTLOOK.

The Prime Minister has returned from his trip abroad as sanguine as ever of the prospects of the country—“the slight depression” and unemploymentnotwithstanding. He is of a sanguine temperament, yet while being hopeful, lie must needs attempt something to bring those hopes to pass. The country has been drifting along with very little assistance by way of policy to stimulate settlement or promote trade. With regard to the former the Government has been passive, while in reference to the latter, there has been overmuch restriction and regulation. Hr Coates for his Government and his own record, must make immediate amends if the country is to be lifted out of the slough of despond which the present stagnation in trading and employment suggests. The British Trade Commissioner, in a late published report. concurs with our Prime Minister, but lie suggests a reduction in the cost of living and the cost of production as the means to the end in view. Unfortunately he stops there, or rather diverges without giving the. euro or the means whereby both the cost of living and production are to he improved. It is apparent if they were, and folk were living cheaper, there would be more surplus money. But it does not follow that the surplus would I 1 necessarily he expended in a reproduc- * tiye way, With the high rate of wages !

the experience of the past suggests that the surplus woi.t'd he lrittered an ay in luxuries as was the case bcJ fore til! imports soared above exports, I and hv sheer force of circumstances i brought the position to a crisis. World prices for our primary produce, have dropped. That means less money is coming into the country. Ibis affects the producer in the first instance, hut the lessened earning power of the country becomes rollceted all round. Ihe producer may not continue his former standard of living, and he tries to balance things by cheapening his cost ol production, lie has to do away with hired help, which is the beginning of the unemployed trouble, lie buys less and does without goods in the nature of luxuries. He is spending less, and the traders of the adjoining centres begin to feel the pinch. 'They have to restrict their trading in common, mid so the interchange of commerce is affected, and quiet times result, will the inevitable complaints about depression. Other industries become affected on a scale more or less large. Here, we see and feel how the sawmilling trade is affected. New Zealand has a large army of primary producers, and all oiirts are affected when oversea prices for the staple commodities exported, drop. I here lias been nil overhaul of marketing methods, and other teniporarising safeguards, hut when the sale priie drops materially and stays down, it is difficult indeed to right matters by artificial means. To talk of more production at. a time when markets are depressed, if not glutted, is not a sure cure. 'The only cure worthy of the name is to meet the position with some degree of sacrifice. If the cost of living and production have to he altered, then in circumstances such as the present, a revision of wages becomes a great essential. If the poition is to he met intelligently it must he along such lines. Tt has been discussed now from the academic viewpoint long enough mid . without material result. The army of unemployment at tills season of the year is appalling. It was never so before. The true cause must be sought, and the position should not he temporised with longer. The Government must produce some constructive policy to enable the country to pull through. The system of wage adjustment must he revised certainly, and in particular the primary producer must ho encouraged to keen on producing to the fullest extent of his holdings, while land for settlement should he acquired and made available for the people so as to produce more and so bring more money into the country.