ECONOMIC INSANITY

Chronicle (Levin), 2 October 1946, Page 4

ECONOMIC INSANITY

—Press Association

too much loose money floating about

By Telegravh-

- WELLINGTON, Qct. 1. Never in any stage of our history had so much loose money heen floating ahout so dangerously, -said. -Mr. W. N. Perry, acting presiden't, in his address to the Dominion confereace of Federated Faxmers today. Up to this year privaite income had increased, according to the Minister 's figures, by nearly 145 per cent. Taxation was up 400 per cent. wliile the volume of production had increased up to 1944 by only 15 per cent. Those were inereases since 1936. It was xeasdnable to assurae that the volume of production had not increased by more than 10 per cent. in tihe last t-wo years, on account of the coal, power, and other shortages, and also the shortage of raw materials. This meant that since 1936 the increase in inccmes was nearly sibc "times the increase by volume in goods produced, saidf Mr. Perry. 1 ' We have a vitai interest in this matter since, as farmers, the great bulk of production has to be sold abroad and sooner or later we must be -prepared to face lower priees, for it must be apparent to everyone -that Britain cannot alford to continue to pay high priees," he continued. "She is struggling to regain economic prosperity. We have 'a vital interest in this also as responsible eitizens of the Dominion. ' 'Economic Insanity." "I suggest that the figures I have quoted indicate that we are passing through a period of economic insanity. -The degre'e of dnflation we are expeiiencing is often quoted by the quotation of figures from 3939 onwards, but it should be remembered that the big inflation took place in 1938 and foreed upon us the sys'tem of exChange control. The process of inflation has not been checked. "If it is not, then there will be -a crash, and if there is a crash, then th'e person who will suffer most will be the wage earner and no financial wizardry or jilggling can help or save him." Federated Farmers could be a great power for good in the community, coneluded Mr. Perry. To do this they must tell the naked truth, which was found exceedingly difiicult by all politieal parties at ditferent times. Home'tiines it euited them to tell the truth and in other cases to gloss over it, but the farmers-' organisation was in a position to tell the truth as they saw it at all times. They had always played the part of the steady section of the community. Round them from day to day they saw examples of direet action which could only lead to anarchy.