WORLD PROBLEM.
PRIME MINISTER'S REFERENCE. THE MEANING OF ECONOMY. (BRITISH OinCIU WIRELESSJ (Received February 25th, 5.5 .pan.) RUGBY, February 24. The Prime Minister (Mr Ramsay Mac Donald), the heavy section of the British Industries Fair at Birmingham yesterday, was tho guest of the Birmingham Chamber of Commerce at a dinner last night. He said that he waS much impressed by the optimistic note prevailing among the exhibitors. Referring to the general outlook he said that the present problem was Hot one of production, which was more efficient than ever before, and there Was no problem in consumption, for the people were prepared to consume more than they ever consumed befoto. Where the fault lay was tbat between production and consumption something came in,'and prices got dislocated, For some reason or other the primary producers colild not get the prices that enabled the factories to be busy, and until they laid theit heads together and discovered how production and consumption could be related to each other more directly, those great factors would continue to dißturb the markets of the world. x r
That was a world problem, but within that world problem there was a national problem. Our taxation was heavy, deplorably heavy.* Half of it was to keep our nation's word as its bond, and the other half was subject to public opinion, which was intelligent enough to approve of the policy.
Public Expenditure to be Reviewed. The House of Commons, with the consent ot the Government, had sot up a committee to rovieiv public expenditure. He A hoped that the committee would bo expeditious in its work. The Government was 8b convinced of the importance of expedition that there would be no time lost In getting that committee into working order. Abuses must be pruned out, but the cuttings mu9t be not by rulo of thumb, they must be suitable ,>in a, i moral sense as well as productive in economic results. In economy they had to remember that they were faced with a double-edged problem. Economy, did not merely moan a,saving, it meant expenditure of the right kind. Expenditure and wise saving were two aspects of economy, because in times like these the country ought to be prepared for an.expansion of resources and an increase iii efficiency.
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Press, Volume LXVII, Issue 20172, 26 February 1931, Page 11
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379WORLD PROBLEM. Press, Volume LXVII, Issue 20172, 26 February 1931, Page 11
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