POSSIBILITIES OF A SLUMP

Manawatu Herald, Volume XLIII, Issue 2228, 18 January 1921, Page 2

POSSIBILITIES OF A SLUMP

THERE arc possibilities ol‘ a Hump —indeed, it may lx* said that a depression is probable; but the question is, will it be temporary, or will it last any length of lime? says the Mercantile Gazette. New Zealand is- a producing country, and there should be a continuous demand for its foodstuffs, such as meat, butler and cheese. There'will be a demand, but will the prices be remunerative to the men who paid £l5O and £2OO per acre for dairy land? The prices do not depend upon us, but upon our customers, and they will not pay more than they can afford. It is thus necessary to look at the conditions prevailing in Britain and in Europe. There is in Britain to-day a vast number of unemployed, and the problem is a, serious .one. In the second half of 1910 and the first half of 1920 British manufacturers were busy, and could not' turn out the goods fast enough. But a time arrived when the public were unable and unwilling to pay the prices demanded for goods, and there followed a slump. 'Unemployment in Britain will bring about a readjustment of conditions, for the workers must give up all ideas of fancy wages

and come' down to the appreciation of hard facts. Raw materials have declined tremendously during the past six months, and wages must fall also, and if this happens the costs of production will he greatly* reduced and Britain’s foreign trade’ will revive. Under present conditions ft. is> useless expecting high prices for our produce, but we can meet the.situation by. increasing tlie output. It comes down'Ao this, that we must readjust, our business, and in all readjustments it is inevitable that some one must suffer. Wages in New Zealand must fall in sympathy with what is taking place in other countries; if tlie workers-in-sist upon current wages there will he much more unemployment than is generally* The outlook for 1921 is not satisfactory, lmt if we display courage and selfreliance, and work hard and honestly, tlie year should not he as had as is anticipated : in some quarters.