The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY. SEPTEMBER. 5, 1930.

Hokitika Guardian, 5 September 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY. SEPTEMBER. 5, 1930.

A FINANCIAL MAGNATE. The Government took, a, wise step in extending an invitation to Sir Otto Nieineyer of the Battle of England, and his associates, to visit New Zealand. Sir Otto’s mission lias been & special one in relation to Australia, and as an outcome of the investigation, the facts affecting Australia have been laid very bare. Australia has. to meet her. obligations the same as any otheicountry. Now that the usual course of borrowing to meet' shortages is not readily available, the Commonwealth finds itself in a very "difficult position. Taxation cannot produce what is required at short notice, and the general dislocation of trade as a result of the financial stringency, makes the situation difficult for all. Unemployment is very general and the plain issue is before the people now to cut the costs by reducing production expenses This is not received with favour by those in the labour world who have been at pains to create a false and expensive standard with high wages and shorter hours. ' In some quarters the extremists on the Labour side have talked openly of repudiating the public debt. This lias been most unfortunate for the reputation of Australia, and although sane labour is at pains to publicly oppose such a policy, the feeling has got into the air. Finance is always a timorous commodity, and the suggestion of weak security is enough to frighten it away. Australia will be in a very difficult position for some time, and its fortunes are difficult enough without being accentuated by the wild statements of irresponsible men. However, Australia owes a very great grudge against* those responsible for the suggestions of repudiation, and must make her' peace with the financial world as best she can, to retrieve her reputation. The advent of the financial magnates to New Zealand is on another plane. They are invited to talk over the financial position, and the information ifhey should .impart, it may he expected, will be available to the Treasury and the Government alike. The financial policy of the Government can he laid bare in camera, and advice and information sought in the light of world finance, for guidance and direction as to' the immediate future. It is true of course, Mr G. Forbes, Prime Minister, is speeding to England at this juncture on an important Imperial mission. He will be charged also with the details of the country’s position and its requirements He is sure to have the opportunity of talking over the position with the financial advisers of the Dominion, and will he primed with most valuable information. It will he no less beneficial that his colleagues should be as fully advised as possible when the opportunity offers by those with first hand information from England, the nerve centre of the Dominion’s finance and trade. The visitors, it may be expected, will give the Government not onlv advice as to

economical administration, but . the

special reasons i'or it. The world drop m commodity prices is the chief cause of the financial troubles, and the visitors with the special knowledge acquired of the world situation, can advise as to the more or less immediate prospects At this side of the world, so far removed from the main spring of action, it is always difficult to guage matters. Cause and effect spring in the main from supply and demand, and on those points our visitors should Insaturated with a good deal of inside information not available to the casual observer The Government, for its part will be ablo to explain the extent to which it has matters in hand. The half-yearly figures will be available almost immediately, and that gives an extended period over which to judge and estimate the year’s full returns. On that will he based tlio ability to balance the year’s accounts. The visitors learning what lias been done, and ascertaining the results so far, can then advise further as to additional means or precautions, and it will be the class of information which will be the real crux of the visit and its useful outcome.