WELLINGTON NEWS

Hokitika Guardian, 15 September 1931, Page 4

WELLINGTON NEWS

FEAR PSYCHOLOGY. ' (Special Correspondent). WELLINGTON, September 14. ' The Monthyl Abstract of Statistics for August furnished figures for the first seven monclis if the year, that is to the end of July, " and unless one studies the figures with a vnw to according them their relative importance one is apt to be seized with fear psychology and become pessimistic. A good many people are al ready.|uffermg in this way for which they have no justification. But to return to the ;,ta - istics. Th 3 mi orts for the seven months totalled £14,774,556 as compared with £25.582,250 for the corresponding term of last year, a decrease of *£10,807,703, or ov.r 45 per cent. It is natural to et.p.et that as a result of the shrinkage it. vnporU overseass shipping Has been affected. Thus we find that the number of overs-as vessels entering New Zealand ports in the seven months totalled 1465 against 1560, a decrease of 95, and the total overseas shipments handled was 485,•• 376 tons against 564,059 tons. For the seven months the bankruptcies totalled 529 again 427, an increase of 102, and the deeds of assignment numbered 192 - against 121. an increase of 71. An-: other sea of figures that are of great significance are the totalisator investments. The racing: year '-ended with • July, and .the investments totalled £5,- ' 279,404, against £7,461)192 last year, and £7,203,033 in 1929. / The Government secured in taxation last year £514,416' or just on 10-per cent of the" investments. ’' Z " ■

These figures are depressing if allow them to depress ns, but if we appreciate the facts that they s are effects no special importance would ’be* attached to them. The cause of the adverse figures is the fall in the values of our export .products. The primary producers have very little to call their own al ter they have paid the costs of production and living expenses. A great number cannot pay interest on their debts and not a few are unabje to pay rates and taxes. The unfortunate position of the primary producers is reflected in all sections of the community and if we wish to s ce ; some improvement we must do everything f possible to enable the producer to reduce cost. We have. gone a very ' little way towards that. We have, it is true, cut wages and salaries by 10 per cent and more, at the same time taxation has been increased, so that there, is really very little accomplished in the way of reducing costs. It is .rather unfortunate that economics and politics are so closely mixed, for it is notorious that there is a tremendous lag ; in respect to political action, while economic . action is rapid. Because of politics - there has been a drift and presently it. will be found that we must take drastic action as has been found imperative in Australia and in England. .

If we could by any magic raise the ; price of crossbred wool - from 6d *o BtL,.. and force up the prices of butter, cheese and other products we would ... cease to feel the effects sion The price mpveme nt beyond v our control, f6r it depends , uppn world economics and we are but an insignificaht part of the world Some men, „ and especially those returning' from , abroad, have suggested more or less; speedy recovery' but it is difficult to appreciate this. ‘The world-economic conditions have shown no change for the better, even the Hoover moratorium is only a partial relief. The depression however must pass away, for the world cannot- endure much longer the privations and real misery now so prevalent. There is as yet no sign of any improvement, nor wifi we see any improvement until the United States suffers a great deal more. Adversity is a stern school-master, and America is beginning to feel adversity • By the end of the year when winter, grips the country the people of America will wake up to the fact that they need not have suffered and would not,;; have suffered if they played the:gam* with other countries. The initiative' hv world recovery is with America,