The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY. APRIL 29, 1927. ECONOMIC FACTS.

Hokitika Guardian, 29 April 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY. APRIL 29, 1927. ECONOMIC FACTS.

Tm: Executive Committee of the Associated Chambers of Commerce has issued an interesting memorandum, in which the present economic situation of the Dominions is surveyed and remedies suggested. The conclusion reached by the committee in its survey of the position is thus briefly stated : “The whole community in

sonic ways ami sonic of tlie community in many ways, have, liccn having a little too {rood a time, because of the general disregard of hard economic facts.” Tn effect, the community lias lieen living beyond its income, and must now cut out all extravagance. To rectify the present unsatisfactory state of affairs the committee suggests that there are three main courses open: (1) To get higher prices for our exported products. The committee rightly rules this out as being practically impossible, as our products are sold in open markets and are subject to world’s parity. (2) To produce and export .more goods so that the value of our total sales outside the Dominion increases. This, the committee thinTts is the remedy which we must eventually l-d----upon, and those who have studied the position will agree with this. (3) To import less goods and consume less. This course we think is being followed now because it is being forced upon the people. The spending power of the community is much less than it was a year ago and the imports are rapidly shrinking, although the decline lias not been rapid enough to restore the trade equilibrium. However, it is inevitable that reduction in exports should lag behind falls in values of exports ,because until the latter is iir positive evidence no steps are taken to curtail imports. The committee is careful to point out that- “inside these main objectives there are many movements due to take place in order (o correct the balance as lietween one section of the community and another: a balance which has liecome displaced and unequal by the reflexes of the larger movements already mentioned.’’ This, of course, is obvious, hut it may he asked, will not the rectification of these inside lie necessarily precedent to set the larger movements in operation? What is the inducement to the primary producer to increase his production, if the cost of production remains unbalanced P The first attack, must be on the costs of production, and that involves a review of the functions of the Arbitration Court, the customs tariff and the cost of Government, the borrowing and expenditure of borrowed money, the undue interference of Government in business, the effect of State enterprise or private enterprise and other related matters. The committee concludes by saying flint, none of the maladjustments should cause alarm; “hut they call for thought: and. careful, logical and concerted action is necessary to enable us to regain the equilibrium whose restoration is essential to our Dominion welfare.” Logical and concerted action demands leadership, and we confess, says a financial journal in reviewing the position, we fail to see either in the political or commercial horizons,