AMERICA’S LESSON

Hokitika Guardian, 19 January 1931, Page 8

AMERICA’S LESSON

GOLD AND THE SLUMP.

WAY TO PROSPERITY

“The commercial outlook in New Zealand nuiv not he too good, hut

there is no reason why our people should he pessimistic concerning the future,” said Mr 0. C. Mazengarb, senior partner of the legal firm of May,engarb, Hay and Macalister, Wellington, who returned from a world tour oil Moudav hv the Monowai.

Discussing trade conditions generally, Mr Mnzengnrb said that there was an air of quiet confidence both in England and in America- that matters would soon right themselves. A great deal of the present world depression was duo to the accumulation, of gold reserves in the United States and in France. The American people themselves were now realising that the wardebt settlement made with Great Britain, and which was supposed to be highly advantageous to the United States, was not as good as as it formerly appeared. The ultimate result had been a falling-off of America’s foreign trade, because the other countries of the world were placed in the position of being unable to pay for the manufactured products from the United States. The people of those countries saw therefore that they could keep up the present production only by developing their own home markets. “That is why the motor-car manufacturers in the United States arc now using the slogan, ‘This is a two-car country, in an endeavour to induce the average householder to run two cars where he formerly owned only one. There are many directions in which a higher standard of living, on the p a,l t of people who have the money to spend, would bring prosperity back to the country. “For instance, in Canada most homes of the average business and professional man are being equipped with a bathroom to every bedroom. In New Zealand wo would consider that an extravagance —in Canada it is becoming looked upon as an ordinary necessity. People must now be educated up to the point of investing these funds in wavs that wifi provide them with more material comforts and incidentally provide more work.” “After all, the problem of unemployment is a social problem,” added Mr Ma.zengarb. “It surely must be better to spend money in the acquisition of material comforts than to keep on giving money in taxation and voluntary contributions supporting the unemployed.”