ECONOMY OF WAR

Gisborne Herald, Volume LXVI, Issue 20046, 19 September 1939, Page 2

ECONOMY OF WAR

VIEWS OF PROFESSOR COMMANDEER POINTS R. W. Souter, of Otago University, in an address Mn Dunedin on political economy of the war, said that as to means of bringing about an increase of production and economy in consumption something could be achieved by patriotic propaganda.

In actual regulation the choice was between taxes and duties on the one hand and rationing on the other. Duties and taxes fell heavily on the poor ana might even reduce their working capacity. Hence, rationing was usually preferred. In the Great War Britain had controlled the price of home-grown wool, metals, and practically all food-stuifs, and had negotiated agreements for the control of prices of certain imports. Plant had been commandeered for the manufacture of munitions. Labour had not been commandeered, but in some cases military conscription had been used as a lever to get workers into munition industries and other necessary services.

Among the great advantages of commandeering was that it made it possible to keep prices down and to assure a steady supply of necessary goods. The greatest advantage was a smooth and speedy transition to war conditions. A government at war could not afford to wait for the private capitalist to make up his mind whether it was worth the risk to produce certain war goods for problematical profit. Professor Souter expressed the opinion that there was an imperative need for a national economic council to exercise co-ordinating functions and advise on long-term planning. Measures should be devised by experts, not only to carry us through the period of war. but to avoid the worst features of the aftermath.