FIGHTING THE SLUMP.

Rotorua Morning Post, Volume 1, Issue 12, 5 September 1931, Page 6

FIGHTING THE SLUMP.

GREATER OUTPUT NEEDED TO RECOVER FROM DEPRESSION "MUST CO-OPERATE" "Just as New Zealand has recovered from previous 'slumps' so will she come out of the depression of to-day. It Is imperative, however, that all sections of the community co-operate to achieve this much-desired objective as quickly as possible," states -the annual review issued by Pyne, Gould, Guinness, Ltd. (says a Christchurch paper). "The people in the towns must realise the necessity- of helping the people in the country to increase production, and to do this it has already been shown that lower costs must he made possible. "No better evidence of the necessity for reduced costs can be given than the fact that although prices for o.ur exports to-day are approximately the same as- in 1914, the actual return, according to- the Governmeni Statistician's' recorded value, shows an increase from exports through increased production of £12,000,000, or practieally 50 per cent., for last j year's export returns, compared with the year immediately before the war, when there was little complaint about general economic conditions in New Zealand. If we reduce costs somevvh.ere near the 1914 level, the extra payments for interest on loans, pensions, etc., would not he the unbearable hurden they are to-day. "New Zealand exports for the yeir ended June 30 last were £10,500,000 less in value than the previous yean, according to the published returns, On the other hand, the value- of the imports for the same period was £5,500,000 less than last year, with the result that instead of imports exeeeding exports hy over £1,000,000, the Dominion has received for its exports £3,500,000 more this .year than it has paid out for its imports. But this is not enough if we are to reduce to a minimum borrowing on the Lon don market and stabilise our exohange. A cessation of London borrowing would necessitate our exports annually exoeeding our imports in value by nearly £10,000,000 to provide the cash required in London to pay interest on- loans, freight charges, English company proflts, etc.

A Sound Basis. "We repeat our previously ex» pressed opinion of the necessity for our farmer's and all those who realise the importanee of our primary indus tries to the Dominion as a whole, impress upon our legislators that much reduced public and private expenditure is imperative. The Prime Minister (Right Hon. G. W. Forbes) , Is to be congratulated on the start, which has been made, but more is necessary before the Dominion can restore its trade to a sound basis unless a miracle occurs by a return of 'hoom' prices for exports. "Party politics are outside our sphere, but we do urge our readers to bring persistent pressure on all parliamentaiw candidates, who' wiil shortly he seeking their votes, to givc a pledge that they will support no policy of expenditure by the Goverament which is not well within our means. There is the same necessity i'or compulsory economy in the expenditure of local bodies and private individuals so far as Parliament and public opinion can controx this. We urge them to insist that, while 6ur unemployed must be provided for, productive work must be found for the - majority, instead of fnttering away the public's money in chipping grass off the footpaths and other unproduetive jobs."