MINISTER OF FINANCE

Hokitika Guardian, 10 May 1927, Page 2

MINISTER OF FINANCE

ADDRESS AT FEILDINt

[UY TEI.EGUAPn —I*KI* VItEKS ASSOCIATION.

FKILDJNG, May 9. The Hon. W. Downie Stewart, Minister o[ Finance, to-night delivered an important speech here, dealing extensively with the financial position of

the Dominion. The address was given to a large meeting. The Mayor of Feilding, Air E. Fair, presided, and offered a warm welcome to the Minister, who was loudly cheered by the audience. The Mayor said that to have sacrificed one's health in tlie service of the country would have been considered sufficient for most men, hut the Minister had returned to take up the heavy duties of a member of the Government. The work of the Government was being closely watched by the electors. It was recognised that the duties of government. wore very serious "and exact-

ing at the present time. The Minister thanked the audience for the cordiality of their welcome. I lie speech which followed was listened to with close attention. There was practically no interruption. hi the course of his address the Minister said the Government lias been, criticised lately for the infrequency with which Ministers speak, and wo

have been called in some quarters the

Silent Alinixtry. It is true that we do not talk as freely or as frequently as was the practice at one time. I can remember when the AHnisters of a previous Government wore criticised for

travelling round speech making and banquetting instead of working. But anyone can see from a casual glance at the trade figures, the hanking returnsfi, the unemployment figures, the bankruptcy statistics, and other items, that we are passing through a depression similar to what occurred in 1921. You will .remember that wo recovered from the 1921 depression with astonishing rapidity, but it is not so clear that our present difficulties will he so. overcome. These rapid fluctuations of prosperity and adversity are a wellknown feature of post-war conditions, and were forecasted by all economists

as certain to occur. ' 1 am glad to say the effects of t

depression did not reflect themselves in the public finances for tile year jo closed to anything like the extent f had anticipated. I have already made it public that there was a surplus of re venue over expenditure of £587,000. I hat is a modest surplus compared to some we have had, but it is a satisfactory one, and better than I had hoped for.

'} here is no doubt the year we are now in will be difficult. AA'e see on the one band failing revenue, lower bank deposits, increased Bank advances, and on the other hand increas-

ed expenditure for unemployment, family allowances and other items. There has been a sudden contraction of our general purchasing power by of our exports, producing less than the

previous year. 'I he banking figures are significant as showing the trend of decrease in purchasing power. A decrease in the bank deposits means less prosperity in business. The present depression is a direct result of this fall in our oxiiort prices. Hard times and good times come to a Governments alike, whether they he Liberal, Labour or Reform. The rain falls on the just and the unjust, but

in that ease there is only Providence to blame or bless, whereas had times are always charged as the fault of the Government. .Air Baldwin once said that the English people always grumble, hut they never worry, wheras foreigners worry hut do not grumble. In Xew Zealand at the present time it, looks as if people are doing both—they are worrying about low prices and grumbling at the Government.

But one tiling is clear—when prices fall the fanner is the first to feel the change and from him it recasts gradually on the whole community. But it is. I think, easier for most, other sections of the people to adjust themselves to falling prices.

Asked his opinion of the Dairy Control Board, the Minister said that, in his opinion, the Board made a mistake in rushing its fences. It was trying to do in one year what it should have taken ten vears to accomplish. He

said that as far as the present criticism of the Prime Minister was concerned. they were all in it. He said it was not fair to concentrate the fire on Afr Coates. Afr Stewart added that his opinion was that, where these Boards or pools concentrated on improving grading, regulating supplies, finding new markets, often they succeeded, but that when they adopted fixation, prices, they did not meet with