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Hokitika Guardian, 17 October 1923, Page 2

O.v the subject of currency dolbition. a writer on economies puts the position very definitely in the following review : “.Vo government can lie ncf|uitted of that weakness which prefers, by issuing an excessive paper money, to avoid the unpopularity which would attach to increased taxes or, as an alternative, to floating loans for all its financial requirements. Once having begun this easy method of abstracting the wealth of its citizens, there is a pronounced tendency to continue it with increasing zeal until the inflation of prices creates grave evils which urgently call for minoval. A government which values iis credit endeavours to retrace its stops at the earliest opportunity, but the effect of both inflation and deflation 's decidedly injurious to trade. Commerce cannot be smoothly conducted so long as currency values seriously fluctuate. The prices of commodities within 4 he country lose touch with those inline internationally, and the importer finds that the prices soon reach a point heyond the reach of the mass of the people. Infliction tends to benefit the lew who happen to be the holders of stocks, hut the time comes when certain essential commodities cease to be remunerative and in such conditions the aid of government must lie forthcoming. The evils of deflation have been brought home even to the thoughtless. We have seen the falling pi ices, the storage of stocks for long periods and their eventual sale at great loss. The evil becomes most noticeable to tlie public mind when wages suffer, and while, n the case of the upward tendency improvement in remuneration lags behind the inflation of prices, when the contrary flow sets in, wages, except ir. special circumstances. feel the effect in advance. What is essential in the world of currency is stabif itv. ft is a curious fact that Czeeho Slovakia, which adopted drastic measures to rectify its finances, has become a most, expensive country to live in and, in consequence, its cost- of production prevents any substantia! grow th of exports. On the other hand Austria, with a debased currency, has a relatively low cost of production, lb' disadvantage is in the- risk of internal disorder. Vo country can continue safely with a large proportion of its people hi dire poverty, and the main effort- of statesmen should be towards the steadying of rates of exchange, and the facilitation of trade between nations, which includes the removal of artificial barriers likely to hinder commerce nncj create international friction,

any of tho remedies propose d-'are notliing better than an attempt to transfer to 'other countries the evils of unemployment so pressing at home. Probably the most regrettable consequence of recent impositions on Continent.il countries has been the substantial lowering of the standard of comfort amongst millions of people. By these means potential buyers have been excluded from the market and it is only when this effective demand has been restored that the trading communities of the world can hope for complete restoration of trade.”

Dealing with the matter of defence, in a recent issue, the ‘ Round Table” while drawing attention to the fact that military armaments if Europe are greater than ever, and that no country can afford to lie utterly unprepared, thinks that there is up need for the Commonwealth to expand its :u liniments at present, save in the air. The naval agreements concluded at Washington have stopped naval rivalry in the most important categories of vessels of war. It is rather a question of considering the best geographical distribution of such strength as we now possess, and the iinaneia! distribution of the burden involved. Touching on the financial aspect, a table is given showing that tile annual expenditure of the principal units of the Empire on armaments, interest on war debt, and war pensions is nearly £000.000.(XX). the per capita burden being £l'2 7s lid for Great Britain, £5 18s for Australia, £5 13s for Now Zealand, £3 11s lid for Canada, and £2 3s Gd for South Africa. No comment is made upon these figures, but the object, it may bo presumed, is to show the greatness of the burden and the unequal manner of its distribution.

In dealing with the question of fiscal policy, and the matter of migration, which is so closely .bound up with the question of preference or free trade, the ‘‘Round Table” declares phimply and flatly that Great Britain is overpopulated. It says:—The most obvious fact about the British .Commonwealth to-day is the had distribution of population within it. The population of Great Britain, according to the census of 15)21 was -12,707.330 inhabiting an area of 89,017 square miles. According to the last figures there were about 1,185,000 unemployed in the country, partly because of the falling off in the European trade, partly because, despite 700.511 Englishmen, Scotsmen. Welshmen and Irishmen killed during tin 1 war, the increase of population in this island has risen and been mo o rapid than usual owing to the interruption of emigration since 1014. Great Britain is obviously over-populated. On the other hand, there is ail equally obvious shortage of population in the dominions. Canada with an area of 3,720.005 square miles has a population of 8.788,483. Australia with an area of 2,074.58 i square miles has a population of 5,430.704. South Africa with an area of 705,480 square miles has a white population of 1.538.020 and a coloured population of 3,017,002. New Zealand with an area of 103.508 square miles lias n population of 1.218,013.