WAR DEBTS

Press, Volume LXXIX, Issue 23964, 3 June 1943, Page 4

WAR DEBTS

REPARATIONS QUESTION INTERNATIONAL CURRENCY CONTROL Members of the Canterbury branch of the Royal Society of New Zealand at their meeting at Canterbury College last evening heard the views of three speakers on some economic aspects of international reconstruction. Mr A. J. Banks, who opened the discussion, dealt in the main with economic developments in historic perspective over the last two decades. As to what might happen at the close of this war. he believed that recovery would be as rapid as after the first world war. Building technique, he said, had never been so far advanced, and he thought that the people would be hungry for consumer goods. As to war debts and reparations, he submitted that the paying would not be done on this occasion by the defeated nations. “It simply cannot be done that way,” said Mr Banks. “If there are demands for large sums of money we will have the same trouble economically as followed the last war. There should be no war debts, To impose them is only courting disaster.” Mr Banks alluded to the economic and political repercussions that followed when reparations were forced upon a weakened Germany. “There will only be another rotten spot on the body oolitic.” he said, "and the infection will spread.” "I do not contend that we are going to get free trade as we knew it before the last war,” said Professor Tocker. "There are many difficulties in the way. But I do say that we are going to have a freer trade policy.” There would also be international currency control, he continued, and no country must attempt to buy more than it could pay for. He also thought that there would, generally, be a higher price level than before the present war. He was against any country creating internal credit entirely for its own benefit. Free trade proposals were indicated somewhat indefinitely, he remarked, in the Atlantic Charter. “This is necessary.” said Professor Tocker, “if we are to have a durable peace.” Stabilised money and free trade were both essential if wars were to be avoided in the future. Free Trade of Future Mr George Manning said that the free trade of (he future would not be so much between individuals in different countries as between the respective governments. This speaker believed that there would be a further development of the governmentcontrolled marketing system in New Zealand. Commodities would not be marketed through private firms, but through the government which had already introduced a guaranteed price for certain essentials. Agriculture in Britain As England would in future pay greater attention to her own agricultural industry, a lesson that she had learned from this war, markets for New Zealand goods would be restricted. and the income from exports would not relatively be so high, Mr Manning said. It would be necessary for New Zealanders to see that industries which had been developed and expanded during the present war were protected: it was also essential to see that unemployment would not again be rampant in this country. Mr Manning urged the further development of hydro-electricity, and, after the war, the importation of more machinery for that purpose, also for railways and tramways. He indicated, too. that mass production for housing would come. In order to assist former soldiers to take a part in this work some modification of existing apprenticeship laws might be necessary. In future governments would take an increasing share in international trade in order to avoid economic depressions. Dr, R. Page presided. Br, Frankel proposed a vote of thanks to the speakers, which was seconded by Mr A. C. Brassington. Low Ra’nfo.ll at Walmate The lowest rainfall for seven years was experienced at Waimate during the month of May, The total fall was 20 points.