NEED FOR CAUTION

Taranaki Daily News, Volume LIV, Issue 45, 15 August 1911, Page 3

NEED FOR CAUTION

A NOTE OF WARNING. 'MR LEO. MYERS ON THE BUSINESS OUTLOOK. Auckland, August 11 At a- meeting of the Auckland Chamber of Commerce this afternoon the chairman, (Mr Leo. Myers) had something of interest to say upon the subject of caution in .business and financial circles at tile present time. Mr Myers said that newspapers had pulblished the value of the imports and exports in New Zealand during the quarter ended June 30th compared with the corresponding quarter of 1010, showing thait While the imports had increased £862,039 for that quarter, the exports showed a decrease of £980,209. The publication of figures such as these should make every business man pause and reflect as to their meaning. These figures combined make a difference of nearly two millions. Their publication recalled with intensifying distinctness and importance the remarks made by Mr Harold Betvuchamp, chairman of directors of the Bank of New Zealand, at the annual meeting of the bank held on June 10th loast, wherein he felt constrained to say that, in view of the figures he quoted dealing with the imports and exports of the previous four years, it would be wise on the part of the business community to pursue a policy of economy and caution. During a long period of prosperity such as had been experienced in New Zealand, the tendency to increase our private, municipal, and national expenditure had so easily developed' that the responsible section of the business community without stunting their legitimate enterprise, could not too loudly emphasise the necessity for prudence and restraint. The financial stringency that existed aibout three years ago could only be regarded by sensible people as a hint of what was possible at any time, should there toe, a fall in the values of our staple products, such as wool, butter oheese, etc. It appeared to him that this was the Tight moment for the Council of the Chamber of Commerce to give expression to a note of warning to the commercial community, for the figures already referred to would seem to clearly indicate that over-trading was being generally indulged in now, The evil effect of over-trading was hardly noticeable during times of unusual prosperity such as they had passed through during the last decade; but that was just the time jwhen the business community had to keep their minds well balanced and recognise the necessity for exercising a considerable degree of prudence and caution. Communities, like individuals, were very apt to overlook the teachings oi history, which clearly demonstrated that over-trading was the first cause of a weakness that became manifest when the pressure of necessity compelled the brake to be put on. A word of warning such aa he had attempted to convey could not possibly militate against sound, commercial progress.