Wairarapa Times-Age FRIDAY, MAY 6, 1938. RECOVERY HOPES IN U.S.A.

Wairarapa Times-Age, 6 May 1938, Page 6

Wairarapa Times-Age FRIDAY, MAY 6, 1938. RECOVERY HOPES IN U.S.A.

A T an immediate view, the existing economic position in the United States and some of the opinions expressed as to the possibilities it holds alike seem extraordinary. The peculiarities of the position were indicated by an American economist now visiting New Zealand when he observed the other day that the recession in business now being experienced in the United States was the sharpest for fifty years, but that he thought industry would recover before the end of the year. This may look like expecting the same cause at different periods to produce entirely different effects, but in fact the conditions of recession or depression that' exist today in the United States are distinguished sharply in some respects from those that existed in 1929. It is true that today, as in that year of ill omen, investment in capital industries has fallen away, with bad effects on trade and industry generally. The national income has contracted and there has been a serious recent increase in unemployment.

On the other hand, there is not today the terrible stagnation in world trade that existed in 1929, with primary produce in particular selling at the prices of rubbish or failing to find any market. In the United States, too, a vast amount of over-capitalisation has been liquidated, at disastrous cost to many, but with ultimately beneficial effect to the community in general. Much has been done towards reconstructing a boom-inflated financial structure and to strengthen a formerly unstable banking system. In spite of late events like the Whitney scandal, which demonstrate that the work of reform and reconstruction is incomplete, underlying economic conditions in the United States are much healthier than they were in 1929.

Much of the trouble that exists today is tosbe traced to uncertainty and lack of confidence, leading to a neglect of productive enterprise which might well be undertaken, with expanding and cumulative benefit to the whole American community.

The inevitable difficulties of the situation have been accentuated by a conflict between the Roosevelt Administration and the leaders of “big business.” The broad realities of the position, however, are that a comparatively clear field is available in which to employ the ample supplies of investment capital that are readily available.

In the extent to which the leaders of American industry show 'themselves ready to co-operate with the Government in its plans of social betterment—and it has been indicated of late that a proportion at least of the leaders of business are prepared to co-operate on these lines—there is no obvious obstacle to the opening of a new era of recovery and progress. Two essential conditions of continued and dependable progress towards prosperity appear to be an avoidance or suppression of undesirable speculation and an approach at least to a balanced development of industry, cutting out the more absurd extremes of sectional and unbalanced development that have been witnessed in the United States and in other countries in the past.

RAILWAY STATION FACILITIES. NOTHING has yet been heard from the Railways Department on the subject of the inadequate facilities for the handling of goods meantime provided at the Masterton Railway Station. Plainly, however, the improvement of these facilities is worthy of immediate and practical consideration, not least from the standpoint of the Railways Department, as part and parcel of a policy of attracting the greatest possible volume of goods traffic to the railways. With its antiquated and rather feeble crane, and the other shortcomings in accommodation and equipment touched upon, in some observations reported in our news columns today, by a well known local carrier (Mr Alex. Young), the Department can hardly be said to be making full and enterprising use of its opportunities where goods traffic into and out of Masterton is concerned. The provision, within reason, of plant making it possible to transfer heavy loads from rail to motor, or vice versa, is one of the most, essential conditions of an economical and efficient interlocking of co-ordinated transport services. The public, making an increasing use of transport services, has its well-defined interest in this matter. It must be hoped that the Department may be induced very shortly to take up on its merits the question of providing improved facilities for the handling of goods at the Masterton Station, by the installation of a sufficiently powerful crane and in bther ways.