OTHER PAPERS’ OPINIONS.

Putaruru Press, Volume VI, Issue 259, 25 October 1928, Page 4

OTHER PAPERS’ OPINIONS.

PRIMARY PRODUCE PRICES. Unpopular as it must be to seem to cast any damper upon optimism due to the satisfactory prices now ruling for nearly all of our primary products, there yet devolves upon some the duty of translating the economic signs of the times, in order that due guidance may be given. When addressing the Matamata branch of the New Zealand Farmers’ Union, the Auckland Provincial Secretary referred to the tendency of world prices to fall, which might seem contradictory in view of the present rising or well-maintained levels in New Zealand. Mr. Robinson, however, was on sound ground, and the warning may well be taken to heart by prospective purchasers of land, who will be well advised to keep to economic values. Timely enough the latest bulletin by the Department of Economics of Canterbury College, prepared for the Canteibury Chamber of Commerce, is just to hand, and dwells on this very theme. Therein it is explained that t-.mpor-

ary causes of rising prices in New Zealand will in time be more than offset by slower world movements tending to depress prices everywhere for the next decade at least. The causes of these slow movements are deepseated, and their effects will be very considerable. Everywhere the world is concentrating upon increased production, but there is not a corresponding likelihood of increased consumption, and therefore prices must inevitably decline. Machinery and new methods, research and scientific application will cause much greater production, but as production increases its ratio to money, then a fall is due. That thesis is plain enough, and is supported by economists of world-wide repute, who base their conclusions upon analyses ranging over periods from 1851 to 1928 —surely comprehensive enough. The subject was traversed in this journal a month ago, and the purpose of the present reference is merely to repeat the advice that now is the time to build up reserves, for it cannot be done in times of depression. Our hope lies in still higher production at lower costs, and the elimination of all public and private extravagance.— Matamata Record.