The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, OCTOBER 24, 1930. THE OUTLOOK.

Hokitika Guardian, 24 October 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, OCTOBER 24, 1930. THE OUTLOOK.

At the opening of the annual meeting of the Associated Chambers o f Commerce this.week the Minister of Internal Affairs, who despite Parliament being in session, was able to be present at The Hermitage, and spoke in an encouraging vein as to the general prospects of the country. There is a very serious financial stringency in Australia, and it is not surprising to find that situation reflected here, for there are basic causes’in each instance which are not dissimilar. The drop in primary products values is of course the root cause., New Zealand suffering as much as Australia, relatively, in that respect. The financial intercourse between the Commonwealth and the Dominion,; is a factor also. The banking institutions are so closely knit’ together, that thp .policy founded on the business in one country is reflected in. the other, It is from this (source that tlio financial stringency largely emanates, Sr far as the last returns from the six trading banks in New Zealand are concerned, the Minister at- the conference expressed his belief in ill. sound and satisfactory condition c. thie financial position of the country. From the figures published, it was clear that the hanks were doing „ a great deal to assist trade in New Zealand, the advances to clients being both substantially large and a considerable increase on the previous period reviewed. There is also reason to believe that the banking position is improving. There is evidence of this from tile recovering value of bnnk shares on the market. Probably a contributory factor to the improvenipnt and outlook is the substantial cheek on the value of imports. Although this is a period of the year when for seasonal trade the imports increase, there has been a relative decrease of a substantial amount, thus easing the genera] position very greatly. It is satisfactory to know also that the value of exports is being a veil maintained also at this period of the trading year, despite a fall in prices which appears to be made good by an increased volume ol exports. The Government as the Minister explained at The Hermitage, was carrying out its obligations also. Though revenue for .tliio half year declined half a million, the expenditure had been reduced by £690,000. This removed any sign of financial drift, and is a praiseworthy result when the effort van needed so much. While all this is very gratifying, there remains the necessity of’ a sustained effort of economy in all possible directions. The world's markets are so much depressed. that values for primary commodities in particular, are not going to show any early advance, The hopes from preference in regard to Imperial trading are not 'bright, and,.the position with Canada in respect to New Zealand dairy produce is obscure still. Tkb country must needs endeavour to live more and more within the capacity of itself. Now Zealand goods should have preference wherever possible, and the public should he impressed with this duty id every turn. The remote position ol New Zealand on the face of the globe places it far removed from neighbouring centres possible' for intimate trading relations.. The surplus products from This country have to go on a market already served by other countries at less distance from the trading centre. That is a handicap, and only by organisation can that difficulty be met. The flame with the actual manufacturing production c

flic produce. There must he organisation and economics in that direction also, so that better results .from the available markets will accrue to the producers. There is reason for the dairy farmers of this district to ponder this aspect if thiere is to be any appreciable lift in returns from the low valuers now ruling. This is mentioned to indicate that the outlook is not hopeless if there, is a genuine attempt to strive for better results even with a low priced market. There are still ways of retrieving the position, and those concerned should study the position from every aspect.