The Guardian And Evening Star, with which is incorporated the West Coast Times MONDAY, SEPTEMBER 29, 1930. FINANCIAL ISSUES.

Hokitika Guardian, 29 September 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times MONDAY, SEPTEMBER 29, 1930. FINANCIAL ISSUES.

Tin? departure of Sir Otto Niemeyer on Thursday was marked by a thoughtful address.-.in advances on world finance. A perusal of the remarks arrests attention to the fact that New Zealand is obviously interested .and implicated in - the subject very greatly. As a producing country of raw materials which-have to be sent overseas, the Dominion is at once drawn into the vPrtefc .Of world finance, and the world .-.conditions cannot bo ignored. Set Our house in order ns much as we may, we are face to face n.t the olid .with what the produce will bring In the distant .markets nvnilalble. Production in New Zealand is increasing, which is tangible evidence of the (ability of the producers to aim at a self-reliant policy, but unless the return for the output is remunerative the : effort is without adequate reward. Sir . Otto had something to say on what might lie done to avoid any disastrous possibilities through the agency ; of finances. He .suggests a pooling of the national credit by which means greater stability would be assured. It is to be assumed that he was satisfied the country was attempting a fail thing in ifis national finance. Mr 'Forbes had in advance set about balancing his budget, and had also cut down borrowing, at least externally. What more can he done is perhaps outside the action of the Government, and is more for the individuals or their organisations in respect to industry. That means a movement to reduce costs of production and manufacture. This does not mean a fall in wages, necessarily, but a cheaper administrative movement whereby goods will be cheaper, and .wages could purchase more, creating a greater home consumption, and in turn causing more production and more employment. 'That would indeed be a happy issue to the present rather dire situation, but the difficulty is to get the employer and employee to see eye to eye in these matters and so co-ordinate their actions and their .forces, that the desirable results might be achieved. There is a good standard of living afforded, and it is not desired to see it menaced, nor is it: desirable to see It break down without a legitimate effort to face facts. Economic pressure is a reality these times. Money is a scarce commodity, and pressure is being put on in many directions. The general drop in the share market is attributable to .the scarcity of credit, and the necessity of forcing scrip on the market to acquire money to carry on business or major undertakings. Sir Otto seems to suggest if available credit were manslialled to a central banking institution, all that is available could be rationed out, and more and regular use would be made of the money possible to circulate. There would he less stores of wealth, and no necessity for national hoarding, which would he of assistance to legitimate trading which now has to go (short '.of necessary credit, imposing restrictions and retrenchment which tend to depress trade and create further unemployment. Examples have been given of the success in Europe and elsewhere with the use of reserve hanks. Still the movement is a product of the times, and is not a definite cure for the financial ills present. Sir Otto i.s not too definite in the advice and recommendation, |,„t it has attractive features. There, are hopes that something definite in

regard to Empire finance may come out of tlie imperial Conference opening on Wednesday. The stringency within the Empire, and the check on trade 'by the fall in prices for staple commodities, are an urge for action to endeavour to retrieve 'the position. The Conference will have at its call in London several 'Mr 'duos, witn the very latest knowledge at v.orld finance, and it is to be hoped devoutly that a waj out of the present financial impasse will be found for the (Empire at large.