OUR TRADE BALANCE

Wairarapa Times-Age, 11 July 1938, Page 7

OUR TRADE BALANCE

COMMENTS BY SIR AUSTIN HARRIS DECLINE MAY BE SERIOUS IF NOT CHECKED SOME HOPES OF GENERAL RECOVERY By Telegraph—Press Association. Copyright. LONDON, July 8. Sir Austin Harris, presiding at the annual meeting of the National Bank of New Zealand, said: — "That decline in the favourable trade balance of New Zealand may be serious if it is not checked, but we hope the position will clear itself. “Naturally the Government’s health and pensions scheme will involve a heavy drain on the future finances of the Dominion and a serious burden for the individual taxpayers. Therefore, it is not satisfactory that expenditure has almost kept pace with increased revenue.” Referring to the trade situation, Sir Austin Harris declared they would be failing in their duty as bankers if they shut their eyes to the danger which may arise from overstocking at a time of trade uncertainty. Nevertheless, there were hopeful signs of returning confidence. The easing of international tension in the past few weeks may be the precursor of general economic recovery.

“The Financial Times” considers that the sterling balances in London provide no justification for the recent fall in New Zealand stocks, and adds that the Government’s schemes mean a heavy additional burden on the community. “A policy of over-spending during a slump,” it says, “would bring awkward repercussions, but the slump would have to be a catastrophic one to cause default. There can be no doubt of the Government’s willingness to pay, in view of the assurances of Mr Savage and Mr Jordan.”