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Hokitika Guardian, 22 November 1930, Page 4

The fall in prices for primary products is a very serious matter all round, and folk generally can afford in the public inter.Ms to take note of the situation and study possibilities for a recovery. As a southern exchange remarks, up to the present commodity prices have fallen generally; now any fall is isolated, from which it would appear that the process of arresting receding prices iis now in operation. This will tend gradually to restore confidence. When buyers find that they run very little or no risk at all of prices lulling they will buy in larger quantities, and this will set the tide running towards increasing business. One essential to trade improvement is that the problem surrounding agriculture should be solved. Agriculture is the industry which provides the human race with its food, and it is imperative that this industry should rest on Hound economic Foundations, which is not the case at pres-iiit. While it In extremely important for the country ’.that industry should bo prosperous, oil the other hand it is necessary for industry that tile farilter should be flourishing US tile coftscqUent increased purchasing power would reflect Und Stimulate industrial output. The fundamental problem is the vital necessity for keeping equilibrium between ■the f orccs producing raw materials and foodstuffs and those engaged in the manufacturing industries. It s a very nice business to see this financial equilibrium maintained. There are certain drawbacks in the way. There is always tlio bdgev of the standard of living. Good prices and flourishing times created a standard- which many are now loath to part with. These good times were bolstered up by arbitration proceedings which arrived at a basic wage, and enforced certain conditions all of which cost money and added to the cost of pioductie.i. With commodity prices inflated by world conditions generally, ail wont well, but when world conditions brought about a deflation in prices, there is a new set of circumstances, and in all honesty the situation should be reviewed in that light. Ihe (private individual must perforce uo so. Tne chronicles from time to time of bankruptcy proceedings 1 show that individuals meet advene trading conditions. Their statements reveal the efforts to stem the adverse tide, hut they were not able to do so (successfully and so failed. The individual is symptomatic of the nation. It .has to strive to most the general (situation and may fail. Some Huge failures are being recorded in the United Stages, where even barlks by tbe score are meeting with adverse conditions. Our neighbours in Australia have to lace a Very Stringent position. The fiances of the country have to be put in order, or the hankers state they will not honour the wages cheques! When matters reach that pass the position is indeed critical, and the.*o is .a palpable call for the adjustment of the financial equilibrium. Harking back to the plight of the primary producers in this country, it is manifest there must be an overhaul or producing costs. The farmers are icvcaling it, and looking for co-opera-tion by the political parties to that end. When the country faced annihilation in war time, a national cabinet organised and faced the filiation. Annihilation in another gaio is showing up too many, and there is the same call for intimate co-operation to fight the real problem weighing down the country and preventing advancement. There is the call for outstanding political courage to face this dire extremity.