WELLINGTON NEWS

Hokitika Guardian, 12 May 1931, Page 5

WELLINGTON NEWS

POLITICS AND BUSINESS. (Special Correspondent). WELLINGTON, May p The International Chamber of C merce, now in Conference in Washj ton is composed of the leading I iness men from many countries, i of international repute and inter) ional trade interests. The c-onfere as a matter of course considered world-wide depression and the e elusion reached by this internatio Parliament of business men is tl the depression to be dispersed must assisted by business men. Politico tan help but politicians prefer to h der by dictatorial methods, by attemj at price fixing, controlling, subsidisi bounty feeding and other ill advis expedients. The depression in New Zealand taking a serious form because we a still burdened with industrial co: and high costs of living, and the

costs are above the level at whi

we can successfully or profitably pla our products on foreign markets, is true that the Arbitration Court w this week review existing awards a: perhaps it may order a 10 per oer cut all round. If that had be< operative say six months ago t position to-day may have been bettf but a 10 per cent, cut may not sufficient. Furthermore there are oth things that must be done.

The shelter that .Acts of. KaHiame . provide certain . Industrie* and worke must fee lowered or abolised, in in wo: the internal costs must b« reduced h yond the arbitrarily fixed 10 per cen Business men in the Dominion shop take the initiative but unfortunate they are shackled with legislative r strictions of one kind or another tin they are powerless to take the initi tive steps. Parliament must take the handcuf off industry and trade. But powerfi vested industries have developed, : much so that it will take an excep ion ally strong Government ably led an powerfully supported to remove tl shackles from them. A Governmei such as indicated does not exist an is not in sight so long as we ha\ three parties' in the Legislature. Ce tainly thej . Government can. claim j have! done-; a : great', deal ; but thatHe been accomplished' through tlielgo.QAwj of one of the opposing parties. v fl): Readjustments must be made in- th Dominion as well as in the rest of tli world. and. ? as one eminent *ecOnpmis lias observed: ‘‘Given time and give sound money,’ security of property an the enforcement of contracts privai enterprise will adjust itself to almo: anything. No Government can pla ancF direct the economic life of mi Ron* of people. Economic life goe on, and economic readjustments ar made as individual enterprises stud their peculiar problems, expandin here, contracting there, getting out o lines where returns are low and get ing into lines where returns are high Private enterprise quite free t do so, whjeh is certainly not the cas In New Zealand. It is; however, tibund antly clear that the majority of ou business men ere not fully seized, q the gravitv of the situation. They ar still thinking of the economics of 1921 and 1929, when borrowing in Londoi was easy and when commodity price were high'. But the economics tlm were permissible when butter was mak ing 185s'per cwt.-and'wool lod and lSi per lb. are not- applicable now,(• Then we were looking at the pleas ant side of economics, the side thm spells prosperity, now we are face t( face with the other side, which spolh adversity. It was no trouble to ad just ourselves to prosperity, we hai merely to spend and enjoy ourselves It ig quite a different thing now, anc a good many people think that witf a 10 per cent, cut we will out out adversity, and they are fortified ir this belief by the fact that the trenc in Europe and America is for the arrest of the fall in prices of commodities. To some observers it is apparent that we have not felt the full force of. the depression, hut that it will be upon us during the next two or three months. -, ' If the Government: cannot raise a loan of £5,000,000 in London, shortly on reasonable terms, the local conditions will be very much aggravated. The Government cannot well spend what it has not got, nor spend beyond its income without risking insolvency.