FINANCIAL PHYSICIAN

Sun (Auckland), Volume IV, Issue 1062, 28 August 1930, Page 12

FINANCIAL PHYSICIAN

SIR OTTO NIEMEYER IN AUSTRALIA

“FRANK, BUT BEST THING”

"A physician—not a glorified money lender.” That is how Mr. "Will Appleton, governing director o£ the Charles Haines Advertising Agency, described Sir Otto Niemeyer, the financial expert, at present in Australia, in addressing members of the Auckland Chamber of Commerce tod&y. “All kinds of wonderful things were expected as a result of the visit to Australia of Sir Otto and his colleagues,” said Mr. Appleton. “Optimists thought that he came out on behalf of the Bank of England to make arrangements for carrying the Commonwealth during the lean period. Pessimists had the idea that he was a sort of receiver put in by the banks to take charge. “We all know now that he came not as a glorified money lender, but as a physician who was called in as a specialist, because the general practitioners had either failed to diagnose the case or failed to impress the patient. 1 think you will agree that Sir Otto has just been just a little, brutal in his frankness which probably is the best thing for Australia. NO STIMULANTS “The physician lias offered neither stimulants in the form of promises to meet Australia’s requirements in London nor hypnotics in the shape of assurances that tne remarkable recuperative capacity of Australia would bring everything right eventually. “Instead of offering the sympathy of

a popular doctor with a charming bedside'manner, Sir Otto has, in fact, told the patient that diet will have to be cut down and that energy and work are vital necessities in the future.

“The attitude of Sir Otto Niemeyer in respect to the Railway deficits is particularly illuminating. Every State has been complaining on this score, but it seems curious that it should have been necessary to bring a man all the way from London to tell the Governments that, so long as they pay wages based not on economic conditions, but on some fantastic conception of a basic wage it was no use asking for help. “Although thinking people in the Commonwealth have some idea as to what was necesary to put Australia right, I believe that the visit of Sir Otto will lead to a great awakening on the part of the whole community.” Possibly the best lesson New Zealand could take from Eir Otto Niemever’s report, said Mr, Appleton, was the emphasis that he had placed upon the fall in wholesale prices in the United Kingdom. In Australia these had only been reduced by 5 per cent as between 1925 and 1929. While in this country the fall was from 9 per cent to 10 per cent., the rate in England was now 23 per cent.

“We, therefore, in common with Australia, have to face lower prices for our produce in the world's markets. As the primary producers are badly hit in this connection, all other national costs will have to recede in proportion. While increased tariff protection might help our secondary industries. this can only be done at the expense, of the producer and what we will have to do is to increase our per capita production and reduce costs in order to meet the situation.”