THE DEPRESSION

Hokitika Guardian, 13 October 1932, Page 6

THE DEPRESSION

HOPEFUL OUTLOOK. CHRISTCHURCH, October 12. An address on “Depression and Recovery” was given by Professor A. H. Tocher, of Canterbury College, at a meeting of the Riccarton Citizens’ Association last evening. Mr R. Hepbunv president of the Association, was in the chair. “Here in New Zealand we are, after all, inclined to lose sight of the fact)’ that We are really a very small country—a country of only ■ 1,500,000 people— a nd that we are entirely dependent for our prosperity on trade with other cduntries, and on their buying our products from us,” said Professor Tocker. He reviewed the causes of. the world depression,, and Its effects. He said ' that one cause was that there was a rigid system for supplying changeable and flexible markets. To illustrate the changes of the last few years, he said that in 1920 no great sum was spent in New Zealand on motor transport, ye# now the figures of the Transport Department revealed that approximately 25 per cent of the income of New Zealand was spent on motor transport. Lately there had been great resriction of trade, both in terns of tariff and exchange. Trade involved both importing and exporting, and these restrictions affected every country, directly or indirectly, so that today the total volume of world trade was less than one-lialf of what it was in/ 1929. REPARATIONS AND WAR DEBTS. The speaker referred to war reparation payments and war debts, and surveyed their effects. The partial Adjustment of the former, and various other international causes, had tended to improve the monetary position and bring about lower interest rates. This meant more borrowing for industry, increased production of goods, with increased employment of men, circulation of money, and so on. The British conversion loan had also had a good effect, and money which had been hoarded was now coming into circulation again. “Britain has suffered from the depression less than a ny other country,”', said professor Tocker, “and is relatively the most prosperous nation in the world to-day.” Turning to New Zealand, .Professor Tocker' said that recently there had been a distinct and very encouraging rise in avool and butter prices. Meat was pretty low; but lie thought hides had moved up a bit. New Zealand had had drastic increases in taxation for some time; but there had been none this year. It had not been possible to balance the Budget; hut New Zealand was not nearly as bad, so far as her deficit was. concerned, as other and greater countries, such as Japan and America. Really New Zealand was much better o than other coun- ; tries. . ENGLAND THE LEADER “England is again the leader in world money affairs,” proceeded Professor Tocker. “Her sterling policy has given a lead to many nations, making for general improvement. She has created, perhaps by a' little .inflation, an abundance of money, and interest rates have fallen, thus encourag. ing borrowing and aiding industry. England has been the country to stimulate trade expansion. “People are saying now that recovery must be slow; but it seems that unless further causes of collapse occur—and surely we must have ex- | hausted pretty well all the possible causes—it should bo a steady process, and one that will gain momentum as it goes on. I cannot see any reason at all why prices should not get hack to the 1929 level.” A vote of thanks to Professor Tocker was moved by Mr A. G. Read, and carried by acclamation.