The Dominion THURSDAY, APRIL 1, 1915. A PERNICIOUS IDEA

Dominion, Volume 8, Issue 2425, 1 April 1915, Page 4

The Dominion THURSDAY, APRIL 1, 1915. A PERNICIOUS IDEA

Councillor Fletcher has a short and easy method of supplying the people of New Zealand with cheap food—so simple that is is surprising that it has not been adopted long ago by every country in the world. In the course of the discussion at the meeting of the City Council on Tuesday night, Councillor Fletcher was in the happy position to solve the whole problem— at any rate to his own satisfaction —in one sentence. He declared that "the only thing was for the Government to fix a maximum price at which food could be sold." Apparently he thinks that a great deal of fuss is being made about nothing;' that the whole problem of the cost of living could be solved by a few strokes of the Ministerial pen. Councillor Godber expressed some doubts as to the wisdom or efficacy of such a drastic interference with the laws of supplv and demand, and ventured to ask if the Government could compel the merchants and shopkeepers to sell their goods at any price Ministers might choose to fix. He might have pressed tho matter further, and asked how long Councillor Fletcher or any other councillor would be prepared to carry on business if compelled to sell at the hard and fast price in defiance of the fluctuations in the markots of the world. He might have asked how long the producer would continue to produce an article which he might do compelled by the Government of the day to' sell at a loss. But what was the use of putting such questions to Councillor Fletcher in face of the simple innocence displayed by his reply to the earlier inquiry: "Tho Goverhment," he said, "can do anything." Such implicit trust irt the omnipotence of the Government is really pathetic. One would think that the Cabinet is a sort of earthly providence, which has only "to speak the word and it is done." tJnhappily, experience has shown that such is not the case, as even Councillor Fletcher may perhaps somo day learn. The powers of the State are limited on every hand, and the attempt to put the'theory of State omnipotence ifito practice is apt to have disastrous consequences. A Government may have power to do many things which it has no right to.do. Is Councillor Fletcher prepared to accept the German maxim that the Stata is not amenable to the moral law that might is right? Circumstances may. s arise during a great national crisis which would justify the. authorities in fixing the prices of-ccrtain necessaries of life, but a procedure of this kind is fraught with so many dangers that it ought only to be adopted as a last resort. The commerce and industries of a community are like a delicate and elaborate machine, which would be thrown completely out of gear by inexpert interference with the normal working of any of its parts. In reply to the suggestion that the British Government should adopt hcroic measures, such as the fixing of maximum prices, Mr. Asquith recently remarked that the experiment had been made in Germany with most disastrous con"The only result has been evasion and frustration of the purpose the measure had in view." Mr. Asquith said it was not speaking with the prejudices of an oldfashioned political economist, but with the .view of a practical man. But if Councillor Fletcher is right, Mit. Asquith and indeed all the greatest authorities on economic questions do not know what they are talking about. A Government, of course, can do much to encourage production, to facilitate and extend a country's trade, and to see that justice is done between employer and worker. In a recent policy spcech, the Premier of Queensland (Mr. Deniiam) expressed some very sensible 'ideas of the functions of Government in the industrial and commercial spheres. Instead _ of abolishing ot' harassing the capitalist he would impel hinl to larger undertakings, employing more hands under better conditions, and would endeavour to secure for labour the largest share of tho produot compatible with fairness for its indispensable partners in effective production—capital and management. _ Sweating, under-pay, excessive toil, and insanitary conditions he would root out as deadly plagues. This is the true Liberal idea of progress towards the perfect State. The Socialist may_ also have his idea of social perfection, but his methods of realising it are so impracticable that they would probably undermine the foundations of society. There must bo political progress in every healthy State, but. mere destruction is not progress. Enterprise, industry, and thrift arc essential to national stability, but, as Mr. Denham pointed out, these qualities would bo destroyed by Socialism. Mr. Deniiam was in the strong position of being able to show that Queensland had gone steadily forward during the past three years under his Premiership. There' had beeli no serious local strike and no considerable interference, due to labour disputes, with the normal operations of trade and industry. There had been advancement all along the line. Pastoral and agricultural exports had greatly expanded: there had been a record in land settlement; and railway earnings and revenue generally had increased. The financial position was so sound that Mr. Denham was able to .say that, j.hr, war hud ciuisml nclt dislocation iu Ouccailaad as had taken

place in some other States. This is a line record, and one is fullv justified in making a connection tietweeu the state of industrial peace to which reference was made, and the progress which had taken place in every department of trade and industry. The best _wa.v to help the worker is to establish a feeling of confidence in the community, which will result in tho extension of old industries and the inauguration of new ones. This means plenty of work and good wages. The wild proposals of the Socialists and of those who believe that the Government can do anything and everything must inevitably create a. feeling of uncertainty and unrest, which is a ba-r to permanent piosperity.