The Daily News. MONDAY, JUNE 12, 1916. ON A GOOD WICKET.

Taranaki Daily News, 12 June 1916, Page 4

The Daily News. MONDAY, JUNE 12, 1916. ON A GOOD WICKET.

At the annual meetisg of the shareholders of the Bank of New Zealand it is customary for the chairman to make a statement bearing upon the events of the period under review, and Mr. Beauchamp, the present chairman, gave a most comprehensive and interesting address- on Friday last. There is a considerable quantity of information in that statement that cannot fail to attract attention, inasmuch as it concerns a!! classes of the community. Naturally the war, and its effect on trade, finance, industry and humanity, was the dominant influence that permeated Mr. Beauchamp's remarks, and his strong insistence on the necessity for the exercise of economy, though oft repeated, is none the less impressive. The people of New Zealand are quite aware of Mr. Beauchamp's tendency towards pessimism, a characteristic that seems to develop sturdily in the atmosphere of a bank board room or managerial office where it is called caution —an excellent quality for certain purposes, but not exactly suited to the development of a vigorous and self-dependent people. The striking feature of tile address in question is its resemblance to an April day, ivhen sunshine and rain are striving for predominance. In New Zealand we are basking in the sunshine of prosperity—increased as it is by the higher prices caused by the war—and the outlook for some years to come is bright

with promise. Mr. Bcauehamp, however, utters a warning that post-war conditions will compel the purchasers of our exported produce to economise to such an- extent that they will be "unable to pay high prices for the foodstuffs we send them." The values of our products, he contends, must, therefore, "naturally be expected to fall, and to fall, perhaps, 'rather heavily from

those current to-day." That is an out-and-out illustration of his pessimism, and yet he recognises that the world which will emerge from the war will be very different from the world which entered it. We confidently believe, on good and resaonable grounds, that there is not the slightest ground for anticipating any but continued prosperity for the producers of the Dominion for at least a decade or more. Mr. Beauchamp has evidently failed to grasp several obvious facts that liave an important bearing on the future. The masses in Britain, after 'having once been in receipt of far higher pay for their labor than they ever thought was possible, will certainly not go back to former conditions. The old-time "groove" has been flattened out; the workers have learnt to adapt themselves to new conditions and new tasks. They have had their first lesson in fresh industrial occupations, and have proved themselves able to undertake new duties that have greatly improved their earnings. It may be considered that when the war is at an end the labor market in Britain will again be congested, but there is no reason why it should. The places of thousands of the laborers will be vacant by reason of their having made the supreme sacrifice, wliile far more will, owing to disablement, have to be cared for by the State. v That is only one phase of the question. If Britain and the Empire is to eschew trade with our present enemies, as we hope will be the ease, difficult as ft may be, there will be a multitude of new industries that will have to be carried on so as to provide the goods heretofore obtained from abroad, and it is apparent that such industries will provide employment for the people, keep the money in the country, and prevent our enemies from again raising and equipping vast armies to destroy those who have been so foolish as to provide the sinews of war. This trade war against the enemy should prove a double-barrelled benefit to Britain and the Dominions. The war is not

going to exhaust the Old Country, but rather to open up new avenues of profit in the years to come. That is one reason wliy our produce values 011 the Home market will be maintained at a good payable figure. Another reason is that the wastage by destruction and other means of the live stock in France, Germany, Austria, Russia and other countries taking part will take many years to replace in sufficient quantities to meet requirements, and it is the dominions that can alone supply the needs in the meanwhile. Before that time arrives JJew Zealand may have become a manufacturing as well as a producing country. Our prospects were never better, and if the banks were slightly less ''cautious," and more liberal in their advances to 'help in the development of the country's resources, the outlook would be better still. There is not the

slightest danger of prices for our produce reverting to those of pre-war times. The enormous amount of money on deposit at the banks in the Dominion (nearly thirty-one millions), the excess of deposits over withdrawals at the Post Office Savings Bank (nearly two and a half millions), all point to our prosperity being on a solid and enduring basis. The shareholders of the Bank of Xew Zealand are receiving handsome dividends, and will no doubt continue to do so, and it would be unreasonable to expect a cessation of those dividends as it would to anticipate a hffavy fall in the price of our primary products. We are on a good wicket, and a long innings may be expected with every confidence.