The Dominion. WEDNESDAY, OCTOBER 30, 1912. THE STUDY OF ECONOMICS.

Dominion, Volume 6, Issue 1584, 30 October 1912, Page 4

The Dominion. WEDNESDAY, OCTOBER 30, 1912. THE STUDY OF ECONOMICS.

A few weeks ago we had a brief reference to the absurd situation Wdiich had arisen in Victoria in contection with the University Council's proposal to establish a Chair of Economics. The negotiations between the Government and the Council have been progressing, and last week, we learn from the files just to hand, the Government informed the Council that it would vote the necessary money, provided that applications for the professorship should b:; limited to Australians. The Council replied that it could undertake nothing more than that, other things being equal or nearly equal, an Australian should have preference. One might be excused for thinking that the Government was convinced that there are plenty of sound teachers of economics in Australia, and took up its attitude becauso it was so convinced. In point of fact it is highly probable that there can be found in Australia a man capable of filling the Chair with credit to himself and to the advantage of the study of economics in Australia. But Mr. Watt, the Acting-Premier, had made it clear that his Government's attitude was due to a conviction that the new professor should havo a special knowledge of "Australian economics." He has been abundantly assured that there is no such thing as "Australian economics"—that the principles of economics are as independent of latitude as the binomial theorem, that twp and two are four in Pekin as well as in Melbourne. The Melbourne Argus, which has made this as clear as possible to Mr. Watt, does not think it is probable at all that there is any Australian competent to fill the Chair—an opinion the opposite of our own. But it hits the nail on the head when it says that "at the back of the Ministers' minds is the fear of importing a fiscal heretic, /according to Ministerial standards of fiscal orthodoxy." It might have gone on to point out that this frame of mind in the Ministry, arguing as it docs the politician's sharing of the popular contcinpfc for economics, is tno strongest of reasons for encouraging by every means the study of economic pnacinles without delay. Last week we touched upon this popular contempt for economics when we discussed a paper read by Siu Henry Ctinvnohamb at the British Association's Congress. He expressed the opinion that economics could be considered an exact science, and really we cannot see how it can be regarded as a science at all unless there are some social and economic laws as absolute as the laws of motion. The London Times of September 16, which has come to hand since we noticed Sir Henry Cunyngiiajie's paper, is inclined to deny the exactitude he claimed for economic Bcience, on the ground, mainly, that there are some "important economic concepts" incapable of mathematical treatment. It means that the chief contemners of economic science—the Socialists—cannot bo mathematically refuted when they say, either directly or by implication, that there will be no difficulty in inducing or obliging men of high ability to accept the same remuneration as men of less ability in the Socialist State, and no difficulty in getting men to work with as much mental and physical energy as at present after the effectivo inducements to do so jiave been withdrawn. But surely it is.'quito safe- to assume that men will always be men —using the word "always" in the sense of finite time. Euclid assumed, but did not prove, us nobody can prove, that a straight line is the shortest distance between iwo points. Every day, in New Zealand and in all other countries, the press records statements by politicians and agitators which are 'opposed to common-sense and opposed to facts and reason. Of our Hadicals, how many have any idea that there is such a thing as economic icience at all ? At the present time ihcro is no greater defect in our UniI'orsity system than the absence of ilh'cient Chairs of Economics. Wo mould be very sorry indeed to see ;he humanities reduced to an estate poorer than they hold at present in New Zealand, but the actual case of ijip nation is such that it would possibly be a gain if the study of ccjlomics were made the principal purjosc of our University establishment, rhe .Reform Government can render i great service by considering woll ;hc practical recommendations of th<: L'ost of Living Commission in this :onncction.