WELLINGTON NEWS

Hokitika Guardian, 13 September 1928, Page 4

WELLINGTON NEWS

CONSOLATION FROM STATISTICS. (Special to >' Guardian.”) WELLINGTON, September 12. "There appears to be some indication of improved and improving business conditions,” observes the Government- Statistician in tho Intest Monthly Abstract. This opinion is based on tlie statistics available for the month. It is shown that tho volume of bank debits for July indicated a lovel of business far above that for June, but below that for May. Production in primary industries indicated by butter and cheese grading was at tho usual seasonal low lovel, while tho meat export trade was down ns compnred with June for lamb, mutton antj beef. Tho totaj value of exports was maintained slightly abovo Juno level, in contrast to the seasonal dcelino about this time. Imports showed tho upward tendency generally recorded at this time of the year. Building activity, although slightly below June, was still on a high level. Bank advances /continued falling in July, interest bearing deposits moved upwards, land transfers and mortgages indicated increasing activity in financial circles. Tho value of land transfers recorded in July was 14.40 per cent above June and 0.97 per cent above July 1927, while the level for the seven months is 4.73 per cent above last year’s level. Mortgages registered which are closely associated with sales of land, moved in sympathy with land transfers; the July figure was 10.36 per cent above June and 3.94 per cent above July 1927. Evidence of increased community spending power is afforded by figures relating to mortgages discharged, which, for the seven months are running on a level 3.84 per c-ent. This is quite a new direction in which to look for spending pdwor. Eminent English hankers take the note circulation and the free deposits or current account balances ns the safest guide to the community spending power. The statistical review is interesting, for it appears that tho . Statistical! ■ has been straining and stretching every set of figures on which to base an optimistic opinion, and the gesture seems to be political principally. There is no doubt that the foreign trade of the country for the year ended July' 31st last was entirely satisfactory to the extent that there was an enormous excess of exports over imports, but this has not resulted in any marked improvement in domestic trade, oil the contrary, the decline in imports necessarily implies contraction in purchasing power, otherwise there would have been an increase and not a decrease in imports. New Zealand is, and must be for many decades to come, a producing country and the fundamental problem for us is the necessity of maintaining an equilibrium between the forces producing raw material and foodstuffs and those engaged in the manufacturing industries, not those merely of New Zealand but in the countries where our principal markets are. Increased purchasing power in each of these groups means prosperity in national and international trade in general,.economic stability and a complete cessation of iho violent- fluctuations which characterise present world commerce. Another, perhaps the most .important lector, is that a prosperous agriculture is a, guarantee for continued peace anions the nations. ’ This is now recognised by international economists, and tin? International Agricultural Institute ol Rome, together with the International .Labour Office of Geneva, works con- j stantly towards that end. Recognis-j ing the fact that in all advanced coun j tries tho groat majority of people, spend most of their income on food-, stuffs'it is tho vital need of humanity j generally to recreate a prosperous .agriculture in all lands. The food production in the world is not keeping paco with the increase in white population, and there is, therefore, hope of a more prosperous agriculture in intensive food production, and this can be accomplished by improved technical skill in farming. This point was made by the Geneva Economic Conference, and only after a general investigation rf the agricultural methods' employed in most parts of the world. Indust!y is exploiting every new invention and method of increased production and economic efficiency. While it is extremely important for agriculture that the industry'should bo prosperous, on the other hand it is necessary for die industry that agriculture should be flourishing. ' The farming community in every country is receiving sympathetic treatment, but there is a strong feeling against helping them with subsidies and tariffs. The depression in industry, which is reacting on agriculture is directly caused by high tariff wallp which crippled the free flow of normal trade and commerce between the nations.