BETTER OUTLOOK

Hokitika Guardian, 21 May 1930, Page 6

BETTER OUTLOOK

ECONOMIST’S HOPEFUL VIEW

AUCKLAND, May 13

An increase in the overseas market prices for New Zeoland produce, and a gradual improvement in the trade position iu the Dominion after period of financial difficulty, were prophesied in an address by Professor ' H. Eels haw, Prolessor of Economics at Auckland University College.

In the year 1928-29 Professor Belsliaw said, the general position was such that an increase in business activities might reasonably have been expected. Iho extent to which it occurred was disappointing. A lack of confidence among investors, a high bank rate, and the employment of an increased return in repaying debts to the more cautious investing public could he blamed lor the taihiro to register a great improvement in trade!

EFFECT OF AUSTRALIAN

SLUMP

“Nevertheless, I feel that the absence of boom in that year will make it much easier for New Zealand to weather the present hard times ' Professor Belshaw said. ‘We cani expect difficult conditions for a while. .At present the wool and dairy produce prices are, to say the least, unsatisfactory, and Australia’s position has, reacted on us unfavourably in ..many ways. On fbe other hand, the ■ lowering' .of the ’English bank rate will very probably mean a transformation in trade there, and will result in better prices for our products, .particularly, food. Moreover, it must j be., remembered that large quantities j of wool and . even dairy produce have j been held back by farmers in the hopes of better times. When they j are released a resultant increase in j the farmers’, spending power will im- , prove conditions here. ! GOLD RESERVES IN BANKS. | “One serious question can be asked : Why are the banks holding the large j reserves of gold in Wellington when ! London banks are finding the bal- j ance of trade difficult to cope with? j They may have good reason ror it,” j Professor Belshaw concluded, “but my j opinion is that they have little use for it here. It is sheer waste of capital, and it meaiijS expensive loss of interest.”