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Hokitika Guardian, 27 April 1931, Page 4

In ccmiuerding 115)011 the matters referred to above, tin* latest bulletin ol the National City Bank of Now York, a publication that usually contains much matter of a thoughtful character, considers tliaf there is mi reason to apprehend that flie real wages of labour ever will turn permanently downward. All the gains in the productivity of the industries, and these, if says, are coming faster than ever before, exert an intlueiiie in the other direction, though if cannot he denim! that the goods and services which afford both employment and Mistuiance ti the working population must conic on the markets on an e-xcliaiig able basis in order to be taken or consumed. In. the opinion of this authority, the low p: ices due to im. provements in methods of production will have to be accepted, in part at least, as pennan n.t, the p:odurers making their own adjustments accordingly, Some lmne for the future is held out bv Sir Henry Strakoseli, who is inclined to think that commodity prices have reached bottom, and that when it is apparent that this is imdouLedly the case confidence will return and production for what may be termed normal needs will he resumed. Savings at present hoarded in the short money market- will flow into long term invest, meats, and will he so employed in the production ol goods, When all this happens the level of commodity prices will lend fo react upwards, He thinks that that reaction should not be impeded by monetary action., but should be allowed to develop until a level is regained, compatible with ultimate «tahiiily. as rear as possible to that from which the slump .darted. The efforts of the principal central hanks, in his opinion, should ho directed towards maintaining that level of prices stable within reasonable limits by cooperative action. As our Wellington correspondent pointed out in one ol his interesting letters last week, there is an accumulation of evidence that the -lump wave is receding or beginning to recode in the Northern Hemisphere. Trade, that is international trade, will go on improving steadily but slowly and as it improves purchasing power will expand. Our customers are located at the point where trade improvement has begun and as they progress and thrive their prosperity will rolled favourably on ns. But it will take- time for the prosperity to reach us. fn the meantime we will probably experience a wretchedly had winter, but with the spring we think the outlook will bo so promising that the hardships of the past will soon be forgotten. Those who have designed the many fads that have come to light, and who are not chronic pessimists, will be inwardly pleased because they will feel that with the opening of a new season, we will see the dawn of prosperity.