BRIGHTER SPIRIT

Manawatu Standard, Volume LVII, Issue 206, 31 July 1937, Page 7

BRIGHTER SPIRIT

ECONOMIC RECOVERY. HON. P. FRASER’S CLAIMS. WELLINGTON, July 29. The opinion that there was a brighter spirit abroad in New Zealand to-day than had been the case for many years past, and that insecurity and fear of the future no longer clouded thousands of homes in the Dominion was expressed by the Minister of. Health (Hon. P. Fraser) when speaking at a reception held at Parliament Buildings in honour of the Prime Minister (Rt. Hon. M. J. Savage) to-day. “More people to-day are in work; trade is better, internally and externally ; bank figures liaA'e touched neiv record levels,” said Mr Fraser. “Wages have been steadily rising, and also have been given a Avider distribution. There can be no doubt that the lot of the worker, the fanner and the small business man is infinitely better than it Avas two or tlireo years ago—yes, ever so much better than even 1 12 months ago.”

Mr Fraser recalled that the immediate objective of the Labour Government Avhen it took office in December, 1935, Avas to bring about a measure of economic reconstruction which Avould result in the highest possible standards of social Avell-being for the people as a whole.

“Has that immediate objective been attained?” lie asked. “I am not blind to yertain disabilities still existing and entirely due to the heavy carry-over of economic difficulties from the depression, but, if one takes i} fair vieiv of everything, conditions generally prove that the Government has achieved largely its initial aim. AVe are enjoying in Neiv Zealand to-day a revival of prosperity, partly due to relatively good prices for our exports this year, but in a larger measure to the Government’s policy over the past 18 months.

UNEMPLOYMENT FIGURES. “To indicate the measure of economic recovery Avhicli has taken place I should like to quote a feiv of the more important facts and figures. First of all there are the unemployment figures. Since July of last year the number of unemployed has fallen by 16,692 — a decrease of 30 per cent. AVhen the Labour Government took office the number Avas over 57,000 and there had been periods of over 12 months Avhen the average Avas over 70,000; to-day tlie figure has been reduced to 37,546. “It is even more gratifying to note that the total lvages bill of the Dominion has increased during the past year by £15,000,000 —tills represents an increase of 20 per cent, over 193536.

“The manufacturing industries have also shown a substantial improvement. It is apparent, lioAvever, that industry is reaching stability after a very rapid rise in prices and production.

TRADING CONDITIONS. “As to trading conditions generally, one does not have to go to reports of the Department of Industries and Commerce for the information that retailers are experiencing an increased turnover. A particularly striking indication that tlie public is spending more readily this year is the fact that a greater proportion is being spent on luxury lines—the imports of motor-cars are up by 28 per cent; radio licenses have increased by 25 per cent. There is also the evidence of increased business turnover in the sales tax returns, Avliieli are nearly 25 per cent, higher this year. “Probably no better indication of the general level of business activity could be obtained than banking statistics—record levels of note circulation and cheque transactions have been reached during recent months. Over the past tAvelve months the circulation of bank notes has increased by 20 per cent, and cheque transactions! by 15 per cent. I should like to refer also to the rise in prices Avhich NeAv Zealand, in common Avith every other country, is experiencing. The latest official index numbers of ° retail prices slioav increases o\;er the past tAvelve months, but such increases are considerably less than the increases in Avage rates. “I should like to point out also that Governmental action in controlling rentals and prices of various necessary commodities has contributed in no small measure toAvard keeping price increases within bounds. This applies particularly to Avlieat, flour and bread, oranges, petrol, raiv tobacco and onions. “Recovery in internal business activities has been accompanied by a material change for the better in the external trading situation. The volume of exports has increased by over 20 per cent, to £64,500,000 for the year ended June, 1937, and imports by 26.7 per cent, to over £50,000,000. The rise in avool has. of course, been spectacular. The avool cheque is greater this year by £5,000,000, and the proceeds of avool sales constitute a record figure at over £ls,ooo,ooo—this is 50 per cent, better than last year. Mutton and ffinib exports also shoAV an improvement of £1,180,000, Avliile the value of butter exports has increased by 11 per cent, to £16,500,000, and cheese by 17 per cent, to £5,250,000. “The dairy farmer has benefited to an even greater extent than is revealed by this return, since the guaranteed price has been appreciably greater than the overseas market price.

PUBLIC FINANCE. “Turning uoav to public finance, it will be recalled that the national accounts for tlie financial year revealed a surplus of £472,000. Income tax and Customs exceeded the Budget estimate by over £1,000,000. The Customs returns lust year at £9,500.000 Avere the highest ever recorded in Noav Zealand. “These are but a few of the innumerable concrete facts Avhich demonstrate the range and measure of better times for the people as a Avhole,” added Mr Fraser. “I do not overlook a certain amount of voluble dissatisfaction of Avhicli the most is being made by those opposed to the Government. lam bound to say, however, that'much of it can fairly be described as an anomalous protest about tlm cost of prosperity. MeaiiAvhile, all of us here this afternoon and hundreds of thousands of contented people throughout the Dominion, are united in Avelcommg the Prime Minister home to a prosperous country whose welfare has first place in his heart/’