The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JULY 9, 1930.

Hokitika Guardian, 9 July 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JULY 9, 1930.

THE ECONOMIC OUTLOOK, The general financial outlook for the Dominion is under constant survey by all interested in national progress and welfare. The President of the Auckland Chamber of Commerce (has been turning some attention to this vital matter, and on the whole, draws a measure of comfort from the general survey he makes, lie realises the serious situation by the drop in prices, and is somewhat concerned by the growth of imports; which were a million pounds above the export® for the year ended March. In recognising the drop in prices lie gives the fall in wool |as 15 per cent., hides and tallow, 28 I per cent; dairy produce, 17 per cent; | meats, per cent. '1 he average drop on exported commodities is given at 15 per cent. On the other 1 hand, produce has increased in quantity, In the case of butter the increase is given at 17£ per cent, so that the drop in prices is thus balanced as far as the figures go. The increases in quantity are not neglected in exports because there is a good deal of holding back, both wool and dairy produce, and thesecommodities are stored in New Zealand in considerable quantity. The increase in quantity is a very hopeful sign as regards the future, and in that connection the statement by the Gov-ernor-General is quoted that there is nothing in the way of New Zealand quadruplicating her production. This is a very important aspect as hearing on the final conclusion ns to New Zealand emerging satisfactorily from the present stringent position. The country is not singular in its present expi?rientio, Worjd depression is general, and it would appear as far as outward visible signs are concerned that the Dominion is not in as difficult a plight ns many other countries. New Zealand has the land and the climate to produce 'more as the land is opened ii]) and more closely settled. In this connection, as we hope to refer to later, Westland stands in a very promising position. Although for the past year there ns an adverse trade balance against New Zealand, that state of affairs is not going to heroine chronic. The financial stringency itself nets automatically as a brake on heavy importing, and the volume must now be falling. Further customs’ duties to come on shortly will he an additional check. Contrnwi.se, as prices lor primary products harden, exports will advance, for there is a big store of wool, hides and dairy produce awaiting a more favourable, market. New Zealand, therefore, should achieve a favourable trade balance within the

year. New Zealand will soon be en-

teriug on another period of production, and judged by last year's returns, dairy and other produce will further increase in volume. In all the circumstances therefore there is good reason to hope for better prices, and that in itself will assure brighter times again. Prices, however, are not likely to reach any high level, and caution must continue' to he the watchword. What Parliament may do will also govern the general situation. The Government must continue with its policy of economy, and must be careful how it attempts to raise extra revenue by taxation. Hand values are such in the North Island that with wool and butter fat at the present level of prices, any increased burden might tend to do greater harm than the expected- good. But at all-stages there is wal-rantry in a quiet confidence as to the final outcome. New _ Zealand is happily placed .in many respects, and the Forbes'Ministry has shown a very ant attention to the pressing conditions, and is shaping a safe policy as far as can be gleaned in its general administration. This .is sound leadership, and suggests good statesmanship in a very difficult situation. At the same time it is a guarantee for quite an optimistic view as to the general economic outlook of New Zealand.