EDUCATION AND THE PRICE-LEVEL

Evening Post, Volume CXII, Issue 86, 8 October 1931, Page 12

EDUCATION AND THE PRICE-LEVEL

(To the Editor.) Sir, —.Are you not lather precipitate, in your sub-leader o£ 2nd October, in laying it down as an ascertained fact that "all expenditure must bo adjusted to a new level"? One would like to inquire whether this is not more opinion than fact. Economic history is full o£ crises such 11s the present, though possibly none has caused more concern, since almost world-wide upheavals in social systems are proceeding eoncouiitantly with the economic turmoil. But I would suggest that it is yet too soon to predict that we arc in transit to a new low level of general prices. The opinions of competent economists both support and deny this proposition. Only time will tell. Meanwhile should we be justified in making (during a period of Uncertainty) adjustments in our educational system such as' might do grave injury to the present young people? Can' we not hold on a little while and see? You complain of "unreasoning ' resistance" to any reduction of educational expenditure, and say that education "cannot escape the general adjustment." I£ it should prove true that the price-level is to be more or less permanently adju?ted' to a lower ■ level, then,' education with all other costs certainly .cannot escape adjustment. But no body of teachers will resist that, because the present facilities and opportunities could be maintained for less money. Pui from the other end, iX a given amount o£ money' i* from now on going to buy more in goods and services than it did last year, we shall all be able to maintain the same Btandard of life and service, but will pay out fewer pounds sterling fo so doing. Do you think, Sir, that education has so far escaped a partial adjustment to meet the times? If the total icort of education last year, legs the cost of buildings, is compared with the savings mado this year, it will be seen that the reduction is over 9 per cent. (£350,000 approx. savings out of £3,826,300). May I say, Sir, that the fairness ot your paper in this controversy has been much appreciated by your readers, and by none more than the teachers.—l am, etc., F.. C. BREW. [The future course of prices must always be a matter 01 opinion rather than fact. The Federation of Teachers me, however, given its opinion as if it were fact claiming that this is a temporary depression. "Bad times soon pass away: and are' forg6tten." This is for New Zealand, the third year of difficulty, and it appears to us that an adjustment cannot be longer deferred. The policy ot "hold on a little while and see is one, which must inflict grave injustice on ,the country, and especially on tho»c interests which, being subject to the movements oiprices in overseas markets, cannot by mash agitation transfer their losses.—Ed.J