The Daily News. FRIDAY, NOVEMBER 18, 1921. THREE FAVORABLE SYMPTOMS.

Taranaki Daily News, 18 November 1921, Page 4

The Daily News. FRIDAY, NOVEMBER 18, 1921. THREE FAVORABLE SYMPTOMS.

The speech made by the British Premier at the annual banquet which signalises the entry into office of London’s Lord Mayor, is always anticipated with the greatest interest, for it is a custom of long standing that the momentous questions of the day shall be under review. While Mr. Lloyd George has no lack of burning problems on which to dwell, it was obvious that, to a large extent, he was compelled to be more than usually diplomatic in his speech. Especially was this in evidence when he referred to the subject of the Irish negotiations. It will be noticed that he took a somewhat hopeful view of the present position of the conference, though the most he could say was that there was “a better prospect of our invitation to Ireland to come into free partnership of the Empire being heeded than at any time for years.” At the same time he uttered the grave warning that if each of the three parties approached the many tangled problems determined not to budge from the position taken up, it would be hailed with acclamation by unthinking people, but it would not lead, to peace. Naturally the Premier referred to the trade depression, a. topic that is of such vast importance to those commercial and financial magnates of the chief centre of the Empire. Moreover, it is of world-wide importance, and deserved a place in the forefront of the speech. “I believe,” said Mr. Lloyd George, “that the force of the cyclone is spent, and fortunately the ship has not been water-logged.” These are no mere idle words, wherewith to inspire optimism, but the deliberate conclusion of the foremost statesman of the Empire, speaking with full knowledge of his subject and proclaiming the good news that the ride of depression has turned, yet emphasising that the normal level would come slowly. This conclusion was arrived at through the existence of three favorable symptoms, which deserve to be carefully noted and weighed in order to obtain a fairly reliable idea of the outlook. In the first place the great glut of products from the 1920 boom has been liquidated. This was a task of no small importance, and the process of placing such a vast store of goods could not but disarrange the fin-

ances of the Empire, besides sending an exceptional flow of money to Britain. There is no doubt as to the world wanting British goods, and that it is straining the utmost to obtain them, but cannot do so without obtaining long credit. The only way in which the situation can be met so as to stimulate both manufactures and their disposal is by means of special credits against which the producers will be able to draw sufficient to carry on operations. It would seem there are hopes of a revised

scheme being brought into action, a course that would appreciably reduce unemployment, though th* first essential is that the cost of manufactures shall not be made prohibitive by a rate of wages that will kill industry. “Work alone,” said Mr. Lloyd George, “will fill the depleted tills of the world, and you must create a purchasing power.” The second favorable condition is really a part of the first, for it denotes that the world is settling down to work. Again and again has it been proclaimed that salvation from depression can only come through work, and it certainly is a good sign that the precept is being followed by practice. The third favorable system is the solidity of British credit, a factor which dominates the whole problem of returning to normality. It is the burden of expenditure that is the most formidable barrier to better times and conditions, and especially the cost of armaments, hence there should b.e universal concurrence in the British Premier’s contention that disarmament is the only road to safety.. Mr. Lloyd George did good service in pointing to improved prospects. It may, of course, be considered there is nothing tangible to go on in the Guildhall speech, yet the inferences are of such a nature that they can be tested by practical experience, and by that test engender faith and courage in the future, provided every human effort is made to help forward the prospects by work and economy.