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Hokitika Guardian, 3 October 1931, Page 4

A general view of the Dominion’s economic condition, with the prediction of an early trade recovery, concludes the annual report of the Department of Industries and Commerce, which has just been published, While trading and financial conditions in the past year have been distinctly unsatisfactory to commercial interests and the general economic state of tire Dominion (states the report), it is reasonable to expect a definite improvement in conditions during the summer of 1931-32. The seasonal influences on production, and consequently upon unemployment, are particularly strong in a country such as New Zealand, where agricultural and pastoral products are of major importance. Production from several of our leading industries has shown a continuous increase in recent years, and this increased output must in some measure at least offset- the adverse effects of falling price levels. The markets for several of our main exportable lines have shown at least some recovery from the low points rer'pbed jin past months, and there is certainly support fqr the suggestion that a revival of confidence in the minds of investors and traders is all that is needed to bring about a definite improvement in conditions.' It ns a remarkable fact that the banking returns and the experience of large concerns which accept money on dpposit give every evidence that available funds have to an increasing extent been placed on fixed deposit, reflecting the general lack of confidence in industrial and trading concerns. The world-wide disproportion between prices of raw material and manufactured goods is calling for the forcing reductions in manufacturing and handling costs. Wage rates arc falling, sea freights have been reduced, and a general renewal of that equilibrium no. tween the values of various classes of goods which Is essential to healthy trading conditions will, it is considered, he reached by a better demand and somewhat improved prices for raw materials on the one hand and a reduction of processing and handling costs on the other. Tn so far as New Zealand is able to condition internally the economic position of the country resultant from external factors, it certainly seems proper that every effort should be made to reduce production and manufacturing costs. The remaikable natural advantages of the Dominion, backed by the confidence and courage of its people will, it is believed. put as brief a limit on the present depression as can be expected in the face of disturbed conditions in the financial and trading markets of the world.