ECONOMIC SITUATION

Hokitika Guardian, 1 September 1931, Page 2

ECONOMIC SITUATION

THREE ESSENTIALS. GOVERNOR-GENERAL’S ADVICE. EVOLUTIONARY PERIOD ’ i “There was never a time in her history when it was move essential lor New Zealand to take stock of her economic position, overhaul her industrial fabric, and recognise what on the one hand are her legitimate commercial limitations,” said his Excellency the Governor-General, Lord Bledisloe, at the opening of the Winter Show and Industrial Exhibition on Thursday at Wellington. While compelled to abate some oi his wonted activities, said his Excellency, he was glad to he able to include in his restricted programme the opening of the winter show, .partly because of the zeal and, enterprise of its promoters, partly because it brought forcibly to the minds of the public Mint were the potentialities of h Zealand industries, and partly—and perhaps chiefly—beOauSe it sought to bridge the unfortunate gap Which tended to separate towli aiicl boliiitf.V to the economic disadvantage of hbtli, and to the u'timate detriment of thb whole body politic. AN OUTSTANDING CONCLUSION “The one outstanding conclusion unanimously adopted at the "World’s Economic Conference of 1927,” he continued, “was the essential interdependence throughout the world of industry and commerce on the one hand and farm husbandry on the other, and the poverty and distress-occasioned by the failure to recognise their intimate relationship and to frame national policy accordingly. If this is true of the world generally, it is true to a vital degree of this Dominion, with its relatively small population, its geographically isolated /position, and its dependence for ■ its very existence' upon the rename ative p.odicticn of the ou’put of its soil.” Speaking of the need fpr New Zealand to take stock of the economic position, his Excellency proceeded: “Never, was there a time when it was more essential to develop a keen sense of nationhood and a deep-seated consciousness that whatever activity or undertaking is detrimental to the nation at large is not only unpatriotic but in the long run is hound to involve loss to the individual or group of individuals responsible for it. The Brtish race has throughout its glorious history always displayed a patriotic readiness in face of national emergency to sink ail party nd other . differences, and all selfish considerations and unite whole-heartedly and courageously in the determination to surmount its difficulties. A NEW OUTLOOK. “I am proud and pleased that New Zealand, like the Old Country, is tie monstrating to the Empire and ,to the world that she is during the present worldwide economic crisis strongly imbued with this traditional characteristic. What may be the outcome of the present crisi s it is difficult altogether to foresee. “But one prophecy can be confidently made, and that is that there will be henceforward an entirely fresh orientation of view throughout the world regarding the bases of industrial, -commercial and financial wellbeing ; a new outlook based upon the consciousness that civilised communities, however wealthy they . may be, cannot with safety to themselves ignore each other’s economic or social conditions, that high protective tariffs cannot without serious injury to a nation justify the establishment or continuance of uneconomic or unorganised industries, that distributive trades must look for their prosperity to large and quick turnover at a narrow margin of profit on each commodity rather than to a wider individual margin with corresponding accumulation of stale stock and stagnant capital, the long trade credit with resulting bad debts is not good business, and imposes an unfair burden on,the least affluent classes of the community to whom such indulgence cannot be extended, that a reduction of overhead charges is an essential condition of commercial stabi’ity, and that riotous land speculation is bound in the long run to augment the cost of living to the whole community. New Zealand like other progresive countries, must recognise these among other comlicioris of successful modern trade, or be prepared to face the consequents.. You here in this fortunate land have your soil, your climate, and your intelligent and resourceful people assets of untold economic value. A CONFIRMED OPTIMIST. “I remain in these dark days of transient depression a confirmed optimist regarding the future of this Dominion,” his Excellency continued, amid applause, “subject only to two considerations or conditions. The first is a full realisation on the part of every individual in the country of the gravity of the nation’s present financial position and of the possible repercussion upon national welfare of lu's own activities, whether as producer, distributor, carrier, financier, or purchaser. The oilier is tiie avoidance of a too conservative attitude arising from inevitable geographical detachment from the throbbing centres of the world’s big industrial activities,

toward rapidly changing methods of production, distribution, exchange' and finance.. “We are passing through a pacific economic revolution. Its recognition and individual action based upon it are the surest means of avoiding revolution of a less pacific and more disruptive character. Temporary industrial depression is not wholly bad for the nation or for the individuals who compose it. ‘Sweet,’ it is said ‘are the uses of adversity’. In two respects are they especially salutary, first in promoting a sense of national solidarity, sympathetic co-operation between all closes, and a determination to face without grumbling our full share of all reasonable sacrifice demanded of us, and, secondly, in developing resourcefulness, ingenuity ,ar.d self-he’p, virtues which are apt to be at a discount in times of prosperity. In this respect this exhibition is doing invaluable work in the public interest.”