The Sun 42 WYNDHAM STREET. AUCKLAND MONDAY, MARCH 4, 1929 PLENTY OF MONEY

Sun (Auckland), Volume II, Issue 603, 4 March 1929, Page 8

The Sun 42 WYNDHAM STREET. AUCKLAND MONDAY, MARCH 4, 1929 PLENTY OF MONEY

OX E of the many differences between Sir Joseph Ward and his predecessors in national administrative office is that, whereas They could only see silver linings to black clouds, he always sees nothing but a golden sky. The Prime Minister’s latest cheerful outlook reveals the solidity of New Zealand’s wealth and the brightness of its prosperity. Though the unemployed and other distressed people may find exceptional difficulty in believing it, the Dominion financially is as right as right can be.

New Zealand not only has “turned the corner,” but also has become one of the richest countries in the world, making due allowance, of course, for vast differences in population and sheer bulk of national income. On a relative basis, however, it appears at least to be wealthier than Great Britain. Such at anyrate is the core of a cheerful statement at Gisborne on Saturday evening by Sir Joseph Ward, who declared to a cordial audience that must have admired his unfailing cheerfulness, that, “worked out in money terms every New Zealander was earning £6OO a year, although unfortunately all did not have an income that size.” Yes, most unfortuately, comparatively few of the breadwinners in New Zealand either enjoy anything like an income of £6OO a year or are ever likely to get it. Therefore, it is to be imagined that tens of thousands of workers, in'cluding ordinary politicians and many professional men, on reading Sir Joseph Ward’s statement, wjll be tempted to hark back to their nursery days and exclaim; “Who’s getting my lost £200?” Still, it is something to the good to know that there is plenty of money in the country, and that some people are apparently receiving a generous share of it. But it is to be regretted that at a time when New Zealand relatively or actually is among the wealthiest countries, there should be so much distressing evidence suggesting a contrary condition. Economists and even bankers have noted with amazement, but without giving any precise reasons for a remarkable financial position, that “the volume of unemployment seems to be increasing at the very time that investible funds are accumulating.” This phase of national finance was emphasised recently by Sir Harold Beauchamp who, for years past, has been very prominent in noting the ills of the financial world, though much less conspicuous for any constructive attempt to cure them in New Zealand. On the occasion referred to the great banker observed that, in the last quarter of the banking year, deposits bad increased by £5,960,349, of which no less than £5,218,936 recurred in fixed deposits. Part of that huge increase could be attributed to the more attractive terms that were offered by the banks in May, 1927, and not reduced until July last year, but even that reason did not satisfactorily explain the hoard of fixed deposits. It then seemed to Sir Harold Beauchamp, as it also appeared to everybody else who had observed the position, that the increase represented an exhibition of want of confidence. Though conditions undoubtedly have improved since to a great extent, there still is a lack of confidence and general enterprise. Indeed, one of the mysteries of trade and commerce to-day in this country is the fact that, while money is said to be plentiful, business goes forward on laggard feet, and unemployment is only a little better than it was last winter. The "United Government has pledged itself to put things right, and the Prime Minister has no rival in demonstrating that there is no valid reason for things being wrong. So far, the Government has not done anything much more than to express sympathy with the unemployed, and to promise emphatically that very soon all the. difficulties of distressed fellows will be made to disappear. If every New Zealander figuratively is earning £6OO a year, the cheerful Prime Minister should not overlook the lamentable fact that the Auckland Charitable Aid Board alone has been spending almost £6OO a week on the relief of social distress.