ECONOMIC STABILITY

Hokitika Guardian, 7 November 1931, Page 6

ECONOMIC STABILITY

GiOVERNOR-GENERAL’S VIEWS,

FACTS WHICH MUST BE FACED

FUTURE PEACE OF THE WORLD. “How, it'may be asked, is the world to regain its economic equilibrium, and those engaged in trade, and' industry that sense of security and confidence which is essential to enterprise, and comLquently to tnc maintenance and progress of civilisation?” asked the Governor-General Lord Bledisloe, opening the conference of the Associated Chambers of Commerce, at Wellington. “To this question many and conflicting will be the answers of perfectly honest men of sound judgment and iripe experience. No sane mortal amid the present world economic welter would claim to he pontifical on such a subject. “I submit, however, that, among other opinions, which are daily gaining adherents among thoughtful and experienced person®'/ whose views on political, social and religious questions are widely different, the follo.wing are worthy of serious, consideration:

“(1) Simplicity of living, thrift and of oon<soienty>u.s work—charadtesristiies Which made in the past for the .greatness of the. British racemust. once more permeate eve 17 class of the community. ■

“(2) Any national habit or national policy which is destructive of thrift must he discouraged as inimical to the public; welfare.

' ‘>'(3) The drifting of population to this Towns must by various means be effectively checked. “(4) The institutional support of pliysioial and mental defectives of every civilised nation is becoming too heavy a financial burden to place upon the hacks of the nation’s workJ.’ns. To prevent The multiplication, rather than to attempt the cure, ,of the unfit, should be the aim of every civilised State.

WAR DEBTS PROBLEM

“(o) Unless the world is to become

bankrupt and self-respecting nations reduced to a condition of economic serfdom threatening the world’s future peace, international war debts are bound to he materially reduced or wiped out altogether. “(6) Unless gold is available in 111 lie'll larger quantities than it is at present and circulated more freely as ■ the medium of •commodity exchange, it is; Round to give place to another standard of value or else to s'haAo that standard with, silver or j some other metal.

,j “(7) The hanking .system .of the . world, which has 'served its monetary j r.eqiiiirements admirably, while Britain. to her credit, remained 11 nohallongeably the financial and commercial huh of the universe, and 1 economic internationalism was less dominant is bound to undergo seme modification to meet altered conditions.'. ' 'SV. :

“(8) The expansion of public philanthropy and even of commendable public social enterprises, which constitute an ever-increasing burden upon industry, mu sit be regarded until the profits of industry provide the. means and' justification of their further development. “(9) A. drift into public indebtedness, except for-.e demonstrably reproductive must be rigidly and eonrageously stemmed. “(10) As u-iid .speculation in real property is inimical to the public interest and arrests national'developments, steps should be taken to prevent its recurrence with returning prosperity. REDUCED IARODUOTION COSTS'.

“(11) In .a new and isolated country like X'ew .'Zealand,' : dependent for its econonim'-existeiice upon the profitable export tefeljts primary products, the much-needed increase of its population can only hi;;safeiy.effected by. the settlement under •sliiiitable conditions of more persons on the' land. The growing inteirs'fication of husbandry justifies from it'll economic standpoint the greater subdivision of fertile laud. “’(12) A,s tile value of land products,

allowing for periodical’ fluctuations, is not likely in future to' rise appreciably above pre-war levels, it- is imperative for primary producers to look for their ■ economic salvation 'to reduced costs of production rather than to the enhanced price of their output. “13) 'Steady prices are better both for trade and for prudent public policy than alternating booms and slumps. “(14) Uneconomic secondary industries, buttressed by 1 abnormally high fiscal protection, tire calculated to put an undue burden upon other industries and to reduce the purchasing power of the whole population. ‘■(ls) la face of' the mass production of other countries, the nun'ti plication of relatively small-scale industries of the [ same type with no mutual rationalisation, and. augmenting their overhead costs with an excessive variety of output, may prove ill tlie future, however well conducted, difficult to justify in the pub,lie interest. “(16) Close and friendly association and sympathy between primary producers, the manufacturers of their products and their distributors is essential to the prosperity of all three classes, and to a full, measure of custom and confidence on the part of the general public. “(17) Rapid turnover at a small margin of profit is more conducive both to trade prosperity and to popular contentment, than a sluggish turnover at a higher individual margin with an accumulation of stale and ultimately unsaleable stocks, ’

LONG CREDIT DEMORALISING. “(IS) The allowance of long credit is apt to demoralise both trader and customer and to enhance the cost of essential commodities, to the disadvantage of the poorer classes of the community.

“(19) The sale of the output of a country’s factories deserves all encouragement. as tending to stimulate local industry and prevent unemployment, but, failing the fulfilment of these conditions, it is of paramount importance to afford trade preference to the products of those countries which are the best customers for the products of your own. “(20) Public opinion, while encouraging healthy, athletic achievement, should foster among the youth of the nation a love of work rather than of pleasure. No mere pleasure-loving or work-shy nation can ever achieve greatness and a nation which has become great through "'hard, honest work will inevitably lose its greatness in proportion to its disinclination for work j or its endeavour to short-circuit the ( only sure path to prosperity and hap- ] piness.”