The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, DECEMBER 23, 1929. THE OUTLOOK.

Hokitika Guardian, 23 December 1929, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, DECEMBER 23, 1929. THE OUTLOOK.

A note of pessimism is being struck in various quarters as to the outlook ior the coming year. This view is suggested no doubt by the decline in prices tor staple commodities such as wool, meat and butter. The decline in respect to wool and meat is estimated aggregate something in the region of five millions sterling, and naturally a shortage of such an amount in the general income of the Dominion must have its effect. The amount, however, is only an estimate, and is based apparently on the volume of export for the past season. It is conceivable, however, that the quantity for export will show a considerable increase. This is going to be the case with butter, the increase in the production and available lor export from Xew Zealand- being very substantial. Prices though lower, will therefore not he affected so markedly in the aggregate results, and the decline in financial returmj can not be so very mater ial. Whether the same will obtain with regard to wool and meat cannot be estimated at present, but there is not any doubt about the decline in prices. Other factors in regard to the general prosperity have been the free outgoings of borrowed money, and the ability of the country to keep up the rate of expenditure is being questioned. Sir Joseph Ward was able to carry on the policy of advances to settlors and workers in a very free manner. Numerous applications which were held back' wore dealt with, and numerous others received and also satisfied. This money, of course, is interest earning, and soon begins to bring hack a return, but the volume of outgoing was of assistance in reviving trade and commercial intercourse, and so assisted the prosperity of the country. "Where this flow of ready money censes or is curtailed radically, the impetus to trade, etc, will slacken and add a me.a-

sure of retrogression to the general conditions. One of the special burdens of the country regarding the condition of the times, has been the state of employment. Unemployment was very rife over a long period, and created a serious general stringency, various temporary palliatives were tried, civic as well as general government co-oper-ating to do the best possible to relieve tiie tension. Then came the move, again by 7 Sir Joseph Ward, to meet the situation, and a policy of public works in railway and road construction, forest plantation, and the restoration or earthquake damage, was entered upon absorbing in the main all surplus labour offering. This action must involve a very large expenditure, 'fhe money in part is provided from loan funds and in part from the highway funds, and it is a question how long the available credits will suffice. For the large railway works in hand, a considerable expenditure will require to be provided, and however rapid these works may proceed it will be a long time before the lines are interest earning. The expenditure is therefore a direct charge on the annual revenue, and on that account there has to be a,limit to the outgoing, and a point where, employment must again become restricted. These general conditions of the outlook are of course disquietening, and suggest both economy and care. It is not reasonable to stop expenditure, and so create further unemployment, but it is wise to do the most, desirable works only and those with the most promising financial returns. As regards the market for tire commodities, the country has not the power to control them materially. The best that can be done is to augment the supply and make up possible leeway with a greater export. However, the country’s credit is good, and its financial reputation stands well. In Sir Joseph Ward there is one familiar with the intricacies of high finance, and he may Ire relied on to exercise a wise judgment and be ready to meet any emergency with a due regard to the resources of the country.