Taranaki Daily News. TUESDAY, DECEMBER 27, 1921. THE ECONOMIC OUTLOOK.

Taranaki Daily News, 27 December 1921, Page 4

Taranaki Daily News. TUESDAY, DECEMBER 27, 1921. THE ECONOMIC OUTLOOK.

At the recent half-yearly meeting of the Bank of New Zealand,' Mr. Harold Beauchamp (chairman of directors), in accordance with his usual custom, gave an interesting review of the present financial and economic position and its outlook. Mr. Beauchamp speaks with authority and insight. Heretofore he has been somewhat pessimistic, probably because he is aware of the immense difficulty of restraining expenditure in the face of changed conditions. All the more striking, therefore, is a change of tone welcome. He now considers that “our prospects are not, perhaps, so gloomy as may at first appear,’’ for the reason that trade depression in England is passing away, commodities on hapd are being liquidated, the eoal export trade is rapidly nearing the proportions of pre-war days, the prices of raw material are advancing, including wool, a general improvement in the textile trade being apparent. Meat and butter, however, have receded in value, though the prospects of economies in the cost of their production and handling, as well as a more reasonable scale of wages, should partly counteract the lower selling values, while increased employment in Britain will create a greater demand for foodstuffs. Again Mr. Beauchamp lifts up his voice to proclaim the gospel of steady, consistent hard work as the main factor in saving the situation. “We in New Zealand,” said Mr. Beauchamp, “must concentrate on making production pay, and that can be achieved by better organisation, greater economy, more general efficiency, elimination of waste, and, most important of all, by steady, consistent hard work.” There is such convincing truth about this contention that he who runs may read. Emergence from the present economic troubles can only be obtained by work, self-denial and united cooperation. Will this sage advice and exhortation be heeded? Partly, no doubt, but the need for its universal adoption is absolutely imperative if the future is to contain as great a measure of prosperity as the past. The lowering of the cost of production is the keynote of the situation, and that can only be achieved by at least a temporary sacrifice on the part of the workers, the lessening of taxation. and wise economy. It is not the industrial workers alone to’ whom the policy of work and economy applies. To be of real service it must, embrace all classes, from the highest to the lowest, in the Mother Country and in the Dominions. Now that signs of a recovery are apparent it is particularly necessary to do all possible to expedite the advent of better times, and the only way to do this has been emphasised by Mr. Beauchamp with telling force. It is no use to applaud his advice; it must be carried out, and, inasmuch as its adoption will be in the interests of the community as a whole, there should be no time lost in giving .practical evidence of the will and ability to make production pay, and thereby solve a problem that can be worked out successfully by no other means.