REHABILITATION

Rotorua Morning Post, Volume 2, Issue 255, 20 June 1932, Page 6

REHABILITATION

(Special to "Morning Post.")

what is required? REMEDIES SUGGESTED IN REPORT TO BANK SHAREHOLDERS. REDUCED NATIONAL INCOME.

WELLINGTON, Friday. Considerable space is devoted in the annual report of the Bank of New Zealand to the finaneial position of the Dominion and the causes of the prevailing depression. The chairman, Mr. Oliver Nicholson, attributes our position to two definite causes, viz: (a) A greatly reduced national income. (b) An inCreased annual national expenditure. "They mean," he says, ''on the one hand that the income of the country has .seriously diminished and on the other hand that its finaneial requirements have greatly increased In other words, we have less mo~ey from income wherewith to meet greatly increased public charges and standing debts. I do not think it necessary to furnish statistical figures in proof of this assertion, as these have been furnished from time to time through other channels. The serious fall in income is due chiefly to the unprofitably low prices for produce. Sheep Farmers' Case. The wool position is so serious that unless a substantial improvement in prices sets in, sheep-farmitig in New Zealand will be greatly restricted, as it is unreasonable to expect farmers to continue in any industry at a loss to themselves. As this industry has been one of the main avenues of the Dominion's wealth, any restriction in the direction of its development will materially reduce the amount of national income in comparison with previous years and retard the progress of the country's rehabilitation. Our sheep fl.ocks will diminish in number and our lamb export trade in frozen meat will materially he lessened. It is hoped that some means of assistance to sheep-farmers will be devised to encourage them to continue in an industry in the success of which the people of the Dominion are so vitally interested. The Dairy Industry. Dairy produce is very low in price, and it s probable that adjustments will have to be made to a permanent lower level of land values to meet such conditions. Production costs will have to be further reduced, which requirement covers interest and all other charges on the industry, which obviously can only bear charges within its earning power. The condition of a greatly reduced national income has consequently brought about x-e-stxricted trade, which in turix has caused the present grave unemployment crisis. All avenues must be explored to renxedy the position and the chaixnels of a further settlexnent of a considerable section of our population on the land and a vitalisation of secondary industries appropriate to the Dominion appear to he worthy of serious consideration and support: Overseas Tx-ade. As regards our trading relations abroad, much good is expected to result from the British Empire Conference through sacrifices "made for the common weal, an Empire trading understanding and strength which will prove beneficial ixx the future to all the units of the Empire. Ilt is clear that Great Britain must he the main oxitlet of our country's primary products, and we should see that the goods we require from abroad are purchased from this source in preference to any other. Requisites for Welfare. Briefly summarised, the following appear to be essential requisites for ' the country's welfare and rehabilitation. (1) Greatly reduced costs of production to meet world- wide competitive conditions axxd a further increase in the voluxxxe of our exports and the cultivation of further export lines. (2) Restricted public expenditure under several Ixeadings, bringing Government expenditure witlxin the limits of the country's present resources. (3) The cx'eation of a self-dependent rural community comprising the bulk of the population by their settlement on the land in srnall holdings. (4) A reasonahle further establishment of industries appropriate to the country. Thus we would secure a more balaneed population so far as regards their occupation and employment and so remove a portion of the discontent now prevailing in the Dominion.