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Hokitika Guardian, 19 November 1930, Page 4

In the midst of plenty, as it wore, the United States is suffering from financial stringency. Despite the horde of gold, unemployment is rife. Notwithstanding all the facilities unprod uctif n, exports _ are decreasing. Due no doubt to the high tariff wall, imports are falling off, and generally a state of stringency exists. Private banks are in financial difficulties, and the state finances disclose a huge deficit. Higher tariff duties are Sl’.ggested as a remedy, but the experience shows already that step will n :t save the position. If other count res cannot sell to America by reason of the customs barrier, it is clear the countries will not have the means to buy from America any goods in exchange, and a palpable loss of trade results. The President must be in a difficult position at present. Congress iis now very evenly divided, and there is not any guarantee that the Government policy will be acceptable. Ihe Opposition has been generous enough to co-operate as tar as possible with the Government in passing remedial legislation, but nothing tangible has beou brought forward as yet to meet the present situation, The President hi Js a great record as an organiser, and much was expected from the leadership of Mr Hoover in the high office, but financial difficulties are steadily mounting against his administration. There is concern in the United States about the possibilities of gold not meeting the world situation, because as a product it is a diminishing quantity. Still, with the store of metal in the United States' the country is unable to make good. Its great wealth grew out of the business of the war. That source has dried up and the country's administration has not been a'ble to provide a substitute in the way of wealth production —i.o. create markets for its growing produce and products. Its business is being seriously dislocated by reason of world curtailment, and a serious economic problem is presenting itself. With stored up wealth on the one hand, and grave unemployment on the other, a way will require to be found to so order the nation’s affairs that some adjustment will be possible to relieve the tension steadily growing more and more acute in the great continent.