STATE AND PRICES

Hokitika Guardian, 29 April 1929, Page 7

STATE AND PRICES

DOMINION MOVES SLOWLY

(Ninteen Twenty-Eight Committee.)

At tlio remit annual meeting of the Wellington Chamber of Commerce Mr A. Fletcher in the course of his presidential address drew pointed attention to a curious lack of observation and understanding on the part of the New Zealand public. Nothing was more gratifying lie said than the trade balance and the banking position as disclosed by the official figures. The exports for the year had established a new record, reaching fifty-six million and their value has exceeded that of

imports b.V eleven millions, while the excess of depositis in the Banks over advances and discounts on March 31st had reached nearly nine millions. The only thins to be regretted, Mr Fletcher went on to say, was that the expansion of business activity had by no means paralleled the expansion ol the funds available. 'This had been characteristic of New Zealand in the past. The community had been very slow to realise when depression had come and equally slow to appreciate improving conditions. It had been suggested, not unreasonably, that the lack of enterprise Mr Fletcher indicated is in a measure due. to the State’s intrusion upon various spheres of private business. There is every prospect of this evil being remov-* ed, or at any rate very considerably modified in the near -future, the two larger parties in Parliament both being pledged to this relorin; but until definitely freed from active State and municipal interference, amounting to actual opposition, investors will be disposed to move warily in the employment of their money. The Board ol Trade Act. to take one familiar instance oil" prejudicial influences, is drastic enough to prevent any capitalist,or body of capitalists entering upon new undertakings and if easily might be responsible for the conditions i Mr Fletcher indicated. Naturally the Banks on their part would n-’L be eag er to provide money for an undertaking which the Minister of Industries and Commerce might ‘‘prohibit”, ‘regulate’ or “control’’ at his own sweet will. Another baneful result of State interference with legitimate private enprise was suggested by a further passage in Mr Fletcher's interesting analysis of the commercial position. “I would like to draw your attention.” the President of the Chamber told his alert tvudience, “to the utateinent/--marie try high authorities to the cilect that there was a generail fall of prices throughout the world with the exception of New Zealand, where local prices showed little downward trend.” This means that while Great Britain ami other producing and consuming countries are moving towards pre-war costs and prices, New Zealand is not doing its part towards the restoration of the equilibrium of the financial and commercial world. Again, is if not possible, even probable, that State interference with private enterprise in this Dominion so far from being ol any value to the community is actually imposing additional burdens upon its shoulders? Proof to the contrary certainly is wanting.