The Guardian And Evening Star, with which is incorporated the West Coast Times THURSDAY, DECEMBER 31, 1931. 1931, AND AFTER.

Hokitika Guardian, 31 December 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times THURSDAY, DECEMBER 31, 1931. 1931, AND AFTER.

TriK year 190 1 in retrospect is not pleasant to contemplate, for in its train has come a period of gieat depression. New Zealand a far-off from world cents os, did not lee! the effect of the world financial stringency as quickly ;i.s in the northern hemisphere, ' but when it came, there was no mistaking the visitation. It was in the early

weeks of the year that it became evident the Dominion would have to set its fiiumbiuJ house in order. The Prime Minister (Mr Forbes) returned from England where lie had attended the Imperial Conference, There lie had ■seen unmistakable signs of what was happening. New Zealand produce had dropped and it was evident the accruing wealth would fall far short of 1 former years. By the time Mr Forbes wag back to duty, the revenue wave of depression wa«s lapping our shores. Public revenue was falling; private income had fallen; trade was decreasing; produce had dropped seriously. As a.i consequence unemployment had, began to stalk the land—and the depression was actually on.

• The Prime Minister did the right thing. He. called Parliament together and placed the position before the country. To the ci edit of Parliament ■sufficient banking was given the Government to attempt to stem the situation, but the relief was temporary only. The drift went on, and when Parliament re-assembled for the ordinary session, the situation through the continued stringency, had grown worse. Again the position was revealed. Par l Lament temporarised by setting up an All-Party Committee of investigation. The upshot was a Fusion Government drawn from (Initeds and Reform, while Labour and Independents elected to stand out. The Government went on its way and eventually to the country, receiving practically a two to one majority on its policy designed to weather the country through its financial troubles. The Government has the authority now to work out our destiny, and may he trusted to do so soberly and not extravagantly, the Opposition policy to that end boing vetoed in no uncertain way.

It is, of course, not clear that the Government will achieve its object quickly, or even successfully, for Hie future of our finance is wrapped up in world prices for our commodities. No Government can control London prices, for that is the barometer of our prosperity. But with reasonable and economical domestic economy, and cutting the cloth of adminitration ro the real needs of the times, there is hope for a happy issue from our financial troubles. Tf it is any comfort, we may realise we are not so badly off as some countries, but that is poor consolation with unemployment so rampant; revenue still declining; income still restricted; and generally experiencing a state of financial stringency. The state of affairs does not afford a pleasing prospect for the immediate future, for the events of today are so much like the events of a month ago, with no surety of a \timely recovery. But we must not .lose hope, for there is at least the writing on the wall, and the prospect of a new order arriving.

The writing o.n the wall is to be seen by the recent declarations regarding war debts and international indebtedness generally. The United States as the principal world creaivwr granted a year’s moratorium which was in itself a happy relief regarding debt payments, but at the end of the year, some of the countries were no better prepared to meet the repayment demands. Germany, the chief debtor, because the arch conspirator In the war, least of all is able to pay and is on the verge of a total collapse. The President of America then promulgated a ten year’s moratorium and this has been adopted with the canny reservation, that it is not the intention of the States to remit the debt, which stands! What will happen at tile end of ten years, cannot be anticipated, but the respite is important a* a material assistance to world rehabilitation, find if that is brought about, then every one will be in a better position and better humour to pay up ; but ' much can happen in ten years.- The war debts are the incubus of the great 1914-1918 conflict, and time is repairing the awful damage of the terrible visitation.

The two great aspects of war time destruction, said a recent South American periodical, were the human and the material, the former being by far the more important. As regards punishment, there lrs been enough in blood and tears t-o satisfy the cruellest of the gods of war. The material ■destruction caused by the war was, retrospectively considered from. the

angle of 1931, a flealqte. Those who have journeyed through northern France before or during, and then again since the war, know that in the place of the old factories and out of date machinery are to be found modern building and the up to date plant of a new .scientific and industrial era. Mass pi eduction, scientific and mechanical improvement, the synchronisation of factory processes and the greatly improved efficiency of power production, distribution, and utilisation' have created material creative possibilities which make the reparation of the material destruction wrought in the war appear small, indeed, had it nut been for the (sacrifice of human lives and happiness, part of the destruction wrought by the war might seem fortunate.

ft was a scrapping process in more than a fighting sense, and the strength of modern industry has made very light of the job of material replacement, as is evidenced by the fact that isi every form of material wealth the world is richer to day, than it has ever been before. Considering the aftermath of the war in its financial or monetary aspect which D the only aspect apart from the human aspect, which gives rise to any sorrow or perplexity it would at least appear that at long last and at tile urge of many painful lessons the world is beginning to see daylight. The only real penalty for the destruction wrought by the war, excluding of course the human element, may be summed up in two words: War Debts. It is surprising that when the a mounts and the terms of payments of these war debts were determined, nobody seems to have been far sighted enough to realise and make it generally understood that in tho ultimate and practical settlement, these debts would have to be paid in goods and (services, or not at nil.

It is not a question of good or nad fauu on anybody’s part. It is merely a question of mathematics in relation to gold, or a matter of international concepts in the matter of money and everything that money constitutes. The term “they can whistle for their money” implies no sharp practice or want of good intentions, when those who wish to collect debts demand payment in any substance or commodity which the debtor countries do not happen to possess. Useless though it may be to waste words in vain jogrets, it is becoming increasingly evident that had payment in goods and services been accepted and encourages in very way," millions of tons of the world’s goods, for the making of which there are inexhaustible raw materials and in whose production man power might have been used to the limit of supply, would have been created, distributed, consumed and discarded in the natural course of the satisfaction of human wants.

Apart from the fact that war cieDts would have been lower than they are to day, the world would have advanced in civilisation in the measure in which it lias advanced in science and mechanics. The way in which the opportunity of happiness has been thrown away is enough to make all the dead and gone inventors of mechanical or scientific devices which were meant to add to human comfort and to the common enjoyment of the material things of life turn in their graves. The creative possibilities, and the situation of preparedness to take advantage of them, seemed almost to have been set and prepared by a Divine Providence. The mechanical and scientific potentialities of production were already tuned up- in readiness for a veritable explosion of international commercial interchange—in other words trade. The delusion of satisfied self sufficiency with tariffs as its instrument frustrated the logical cure with the result that the war sores are still wide open and, taking the form of war debts demanding payment in gold that does not even exist, pus-ridden.

Ajd so we find the world at the end of 1931, a very troubled universe. What lias transpired in the northern hemisphere is reflected in the southern, and willy-nilly, we are drawn into the vortex. It is difficult, in fact, impossible to extricate ourselves, alone. The best that can be done, is to go with the stream, but to so-regulate our speed that we may escape the rapids. We have to slow down, and that in turn causes further trouble, but it is the lesser of two evils, for to go the pace of abnormal expenditure is to invite a crash, and that must be avoided. We have to keep afloat, and trim the ship of State to the adverse winds. In that way though the process may be uncomfortable, it is at least sale, and we have to endure the inconvenience in the meantime. It is net a joyful prospect, for the end is not in sight, but it is a case of making the bast of the situation. The general situation calls for courage and the abiltv to go forward -hopefully. Our difficulties are caused largely by conditions prevailing in the Old World. Experts arc doing their best to adjust matters, and with the adjustment will come our relief. M.iy it come quickly which will ensure our readers enjoying, as we sincerely wish them, A HAPPY NEW YEAR.