FACING THE FACTS

Hokitika Guardian, 24 December 1930, Page 5

FACING THE FACTS

ECONOMIC POSITION.

ALL PULL TOGETHER

MESSAGE TO EMPLOYERS

“The close of the year 1930 finds the uuveriiuient a,nu ulo people o. -'CiV /.eaiauU lacing gu«n' uunciii-

iius tli.au nave ueen expertenceu kh many years, it would oe wiong io exaggc-iate the difficulties, anil ionium Go lniiuuLso them, 'liue laci-s must 03 laced squareiy and courageously with calm commence in our collective

ability to work out our economic salvation.”

.1 lie above statements .are made by the president, the Hon. T. -Shailtr Weston, and tiie vice-president, Mr W. D. Hunt, of the New Zealand Ein'pldoeps’ .Federation,, in 'prefacing a Christmas message to members of that organisation.

1 “A simple statement of our present difficulty is that owing to a fall of prices in our export commodities in keeping with the world-wide' fall in commodity prices, our income from exports has been reduced in the last two seasons by a total of about sixteen million pounds,” proceeds the message.. WORLD-WIDE FALL. “The significance of the fact that the fall in prices is world-wide must not be lost sight of. If the prices ot our own export commodities ulone had fallen while prices of other commodities had been maintained, the future prospects would have been gloomy indeed, but all commodities the world over having suffered a proportionate price reduction indicates that the fall is due to causes other than over-pro-duction. The: index number of world commodity prices now practically corresponds to that of 1913. With the single exception of wool prices all our own exports are on that level or a little higher. Wool *is lower for the tim© being, but an improvement in wool prices is considered by authorities to be practically assured. The significant-'point ia that with otne exception which may he only temporary New Zealand export prices tear the some proportion to world prices of other commodities as they did in 1913. Further, world prices in 1913 were the peak prices of thirty years. The world in 1913 was prosperous. IMPORTANT COSTS FACTOR, “A return to 'these prices was expected to result rapidly from a return to the gold standard. It has been longer delayed than as expected, but when it did come about it came with puch suddenness that the proportionate and inevitable reduction of costs lagged far behind prices. “When costs are ibrought into line with prices we shall te prosperous again. One most important factor in costs is interest chargeable for money. Money in Australia and iff New Zealand is dearer than it should be because the Governments borrow so largely at comparatively high rates, and spend borrowed capital upon nonproductive works. A cessation of such works and reduced borrowing by the State is an essentia! part of the reduction of costs. “In the meantime our external trade is showing greatly reduced returns, internal trade is reacting to the same influence, and one of the most regrettable and at the same time the most logical results is increased unemployment. “In order to effect essential adjustments between exports prices and internal costs certain difficult and unpleasant things must he done by the Government, hv financial and business organisations, and by individuals.

STRICT ECONOMY. “The Government must cease all borrowing except for State advances, for public works that will be definitely reproductive when finished, and, of course, for conversion purposes. Also, the Government must effect all practicable economy in internal expenditure with a view to easing, taxation. Business organsations of all kinds must take steps to reduce the costs of production and distribution within the Dominion so as to bring internal prices more nearly into line with export prices. “Individuals must help <bv cheerfully continuing to give their best services in their own particular jobs. Tn politics party interests should be forgotten, and all parties should cooperate for the national welfare, sharing responsibility for decisions. “There should also be co-operation between these responsible for the administration of public affairs and those controlling business undertakings, especially as regards minimising unemployment. Unavoidable taxation should be so arranged as to react as little as possible upon trade and business. Employers’ organisations and workers’ organisations should get together for frequent discussions of their common problems, and as far ns may he possible should co-operate to remove all unnecessary obstructions, to Industrial progress and development. TURNING OF THE TIDE. “New Zealand has faced national difficulties courageously in the past, and has won through. Her national resources of climate and soil still remain. Her productive capacity is steadily' increasing. There is reason to believe that prices have reached the bottom, and a comparatively small rise will have a wonderful effect.

After all, our commodities are finding a market, and not simply- accumulating as in some other countries. “If* facts are faced squarely and with courage, if all employers will pull together, if, regardless of party or individual interests they will assist the Government to do the difficult and unpleasant, but necessary things, the Dominion will emerge from her present troubles with trade and commerce established on a firm and lasting foundation, and with an enhanced prestige throughout the Empire.”