NO CAUSE FOR PESSIMISM.

North Otago Times, Volume CVII, Issue 17167, 25 March 1927, Page 4

NO CAUSE FOR PESSIMISM.

It is interesting to note at the present juncture the views of the British Trade Commissioner (Mr _L. B. Beale) on the general economic position of the Dominion. There is a tendency in some quarters to exaggerate the importance of the vslight wave of depression which is passing over the country. This is ahnost invariably the case where a community bas grown accustomed long periods of prosperity and a high standard of living. The least check, a pinch of hardship, ,and the pessimists get to work and picture the worst. We agree with "The Dominion' that the condifions in New Zealand to-day are far from being bad — they merely are not i quite as good as they have been. | Moreover, there are many signs which go to show that the falling off is of a temporary nature. The Trade Commissioner, in his annual report to the Board of Trade, while not shutting his eyes to the less favourable features of the situation, has no hesitation in pronouncing that the general economic position may be correctly described as thoroughly sound. "The State finances, under shrewd .and capable direction," he remarks, "are showing satisfactory results, the j , banking position has been wisely | handled, and there is no evidence ; of any excessive timidity in com- i mercial cirdes. The efforts to stimu- | late and improve production are hearing fruit, and any favourable movement of price levels will not j only maintaiii but enhance" the ' prosperity s of the Dominion. The ; psychological effect of a temporary • reaction has been undoubtedly to ! cause too pessimistic a 'view to be | taken iocally of the immediate fu- ; ture by some sections of the com- j munity, but the high credit enjoy- j ed by the Dominion in the London ( money market in itself bears evi-* dence to the justly favourable regard.in which New Zealand is held by the most expert and dispassionate critics." These e^timates of onr position by an experienced observer, and one who may be regarded as talcing a.detached and dispassionate view of local conditions, are made available at an opportune moment. It is true. of course, that we have to adjust . ourselves for the ;ime being to a smaller income from our exuorts of primary produce. But undue timidity leading to curtailment of legitimate expenditure on sound development would be quite as unreasoqable and prejiidicial to our future prosperity as would be_ a disregard of the need for the cutting off of luxuries and extravaganee of any kind. The increase in unejnployment. during the past few months is to some extent due to a lack of confldence in the immediate future, That some :mea- , sure of caution is commenlable ' cannot be questioned; and economy m the right direction is desirable; ' but these virtues can be carried to j excess, and the general soundness I °f ihe position of the Dominio.n ' should serve to encourage a more I optimistic spirit.