ECONOMIC SITUATION

Hokitika Guardian, 21 October 1932, Page 2

ECONOMIC SITUATION

improvement claimed. DEPARTMENTAL REPORT. WELLINGTON, October 19. While trade and economic conditions generally in New Zealand, as in most other parts of the world, have been unsatisfactory during, the past year, it may nevertheless fairly be maimed that our banking''and our external trade position as disclosed by the statistics and by the returns for the current year to date are both sound and satisfactory, says the annual report of the' Department of Industries and Commerce, which was tabied m the House to-day. Economies have been made in many avenues as possible in both pub,and private administration, and every effort has been made m numerous directions to reduce co?ts to ;• payable basis. At present the gap between prices and costs remains too narrow to permit of any very rapid revival of trade activity and the absorption of tile unemployed in New Zealand, but it is gratifying to note that during the past few weeks there has been a stronger demand and an improvement in the prices for certain of oUr principal exportable products. This improvement, if it continues, will do much to restore confidence -=au make for freer spending.

FACTORS IN IMPROVED OUTLOOK. Some of tlhe factors that have contributed to this movement are th© results achieved at the Lausanne Conference, the success of the conversion loan m 'England, the general downward movement of money rates in London in recent months, and the results of tin Imperial Conference at Ottawa. h vancing prices at recent wool sales held in London and' Sydney, together with increased prices for certain base metals have also materially helped to stimulate the recovery and improve tin outlook for the future. The economic recovery of New Zeafand and fhe restoration of prosperity, continues the report, depend largely upon a real improvement in values and staple prices, and this in turn is bound up with a general improvement in world conditions. When this definitely takes place the way will be paved for a decisive forward move in the Dominion s hitherto Vapid march along the road the progress and prosperity.

COMMODITY PRICES. THe Department has continued during the year to keep a close watch upon the prices 'of those commodities that enter largely into the cost of living, E/ad every effort has been made to ensure that reasonable prices are being chared to the public. Numerous inquiries covering a wide bajlge of products have been carried out into the* costs of production and the prices of Wend in various cities and towns throughout the Dominion, As a vwnlt of these inquiries, reductions in prices have been effected in certain instances. It is not possible to detail all the commodities in regard to which’ such investigations have been made, but among them may be mentioned meat, 'butter, Cheese, bacon, sugar,' milk, coal, woollen goods, and knitting wool.