The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, MARCH 8, 1932. THE READJUSTMENT PROBLEM.

Hokitika Guardian, 8 March 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, MARCH 8, 1932. THE READJUSTMENT PROBLEM.

Ix the multitude of counsellors there should he wisdom. Probably for that reason the Government ha-s not been backward in seeking advice regarding economy from both a business- Commission and also from an Economists Committee. It is wise to search all aventjes .lpy relief,.from the,,stringency now besetting the Dominion, and the Government was wise to seek the advice of experts., There is of course no easy way to rehabilitation. The national prosperity has been upset by the barrenness of the overseas trade, which lias checked the flow of money into the country in adequate volume, Equally, borrowing is not possible, and so easy money in that respect is not collectable. The upshot is a depleted Treasury, It is the nursery rhyme repeated in stern reality. The good mother sought for something for her pet, but the clipboard is bare. Within the last few days the bareness of supplies is being brought home by the suspension of public works, and probably when the Minister of Finance delivers his statement in a few days (or hours) the reality will be more apparent still. New Zealand must set about the readjustment. Admittedly it is a difiicult problem, but the situation is too serious to avoid. The task must be tackled. The experts have been indicating that more personal sacrifices must be made, and it js for the Government after considering the wide range of advice received, to shape its policy. The trend of the reports favours a further fall in wages of ten per cent, to bring earnings into conformity with the drop in the Dominion income; a reduction of ~o per cent, in interest, rents etc., and a reduction in the costs of production. Hie reports also favour a letting up of arbitration awards affecting working conditions, but there is not agreement about an increased exchange. It is suggested that the Budget deficit should be financed by the issue of Treasury bills, but thi.,s is temporary borrowing and ’ means mortgaging revenue at short dates, which might easily be very inconvenient. There its more general agreement as to the Central Bank for the arranging of the issue of Treasury bills, the idea being to make borrowing more assured. The divergence of opinion about a free exchange is markeel, those favouring a high exchange rate being charged with recommending a policy of inflation. There i°a great deal being said against a high exchange and the wisest opinion is to leave matters as they are till after the Ottawa Conference, when the '-object' might he reviewed in relation to the Empire and the possible trade to be developed within the Empire. The mass of matter before the Government will enable a definite policy now to he shaped. The swn taken with regard to the arbitration law anticipated the report. It is like )y there will lie a reduction of intorest, a Minister has already hinted that. Tile wages out will probably be enforced bv stress of circumstances. Unemployment might be relieved by an intensive scheme to effect more production, for that would surely lean aid to readjustment. The stage is being <set for a- (special effort to retrieve tho financial position of the country.

yicroHiA is going to devote a day to old “Dobbin.” The horse has been a prominent feature in Australia always, and there are signs that the motor car has not displaced the useful animal altogether. Melbourne is to have a “Back to the Home” day on April 2. It is appropriate that a day earlier was not selected. On the day set apart, 1200 utility horses will parade through the city. The object is to emphasise the return of the horse to its former positibn in industry, and to mark the occasion draught horses are to pull vehicles loaded with Australian primary produce. Tliis event will not of course rival the big feature at Sydney shortly when the Harbour Bridge is to be opened officially, but if the house is going to come into its own in Victoria, the effect will be a helpful aid to the State in its effort at rehabilitation. The motor car and its needs drains enormous sums of money from a country, the money going oversea® chiefly to foreign countries, and is so much lost capital. The proportion the horse can save by drawing bis motive power from the farms, and by popularising stud farms within the State, can be made an appreciable amount, the more use is made of man’.s useful .servant. Dobbin should not be without favour in other lands, and New Zealand could profit by a greater use of the orse. The Dominion has the motor fever very generally, and the outgoings for upkeep is very large. Some check on this overseas patronage could be effected by following the example of Victoria, and turning “Back to the Horse” for much general work,