The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, NOVEMBER 17, 1931. THE WORLD'S MALADY.

Hokitika Guardian, 17 November 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, NOVEMBER 17, 1931. THE WORLD'S MALADY.

Financial experts are continually at the bed-side of the suffering world attempting to define the exact extent and cure for the malady which has created a universal depression. Economists of high repute, bankers, and even the man in the street are not slow to venture their opinions ana suggest a cure. In the last category may be ranked Mr G. S. Cray, formerly of Greyinouth, now of Timaru, who lias thought long and deeply on the subject, and now in a very interesting booklet which is on sale at one shilling per copy, for the benefit ot the'South Canterbury Returned to outliers, airs his views and opinions on the very complex question. Shortly, v Mr Cray considers that the world, is suffering from financial “blood pressure,’’ due to war profits and war debts. This conclusion is not new, nor is it the whole case, but from tne premiss set out a very interesting study of the world situation is put forward. The story of the world situation is placed before the reader in interesting form. It is original in parts, and not without novelty, so that the review of the position remains arresting throughout. As to the financial “blood pressure” affecting New -Zealand, Mr Cray consraens that the trade-prosperity of the war period, created properly values in an increase ratio to the war debts incurred for the protection of that property. He remarks: “By doubling the values of land and goods the inflated capital resulting from war profits has found use in loans amounting to twice as much as in pre-war years and the interest rates demanded for the use of that money has also been raised substantially in most cases.” We do not know that the interest factor is as blameable as here suggested. Is it not a fact that the inflation of land and necessarily of goods, started in this country in prewar days—in the time of “cheap money.” That venture in political, economy wa® looked upon as a* great financial .stroke., but actually the readiness with which capital could be raised at cheap rates, put up the price of land, and the produce became dearer in consequencest. Much of the land bought : at the “cheap” rates of interest is now so saddled with loan debt that the fictitious val ( ue ha» gone. But the ilbminal owner still has his burden. So with the system of State burden® for building purposes, at the time of so-called shortage of houses. The conditions been me«a political issue, and the rival parties could not do enough for the would be borrower. Advanoes up to 95 per cent, of values were made by the State, and in how many hundreds of cases to-day has the State the dwellings on its hands? A blue paper issued recently showed that upwards of half a. million of interest and rents had to. written off as a loss to the Dominion because the borrowers could not pay. There we have examples of lavish finance which have contributed in no small degree to the plight of the country. The debts so incurred are no less a burden than the war debts for which there is no asset value in return. Getting back to the main issue, Mr Cray prescribes the. cure for the financial pressure of to day as efficient labour working; Tinde'r a ,sierise of national -duty, (and not, we take it, as a 1 class of organisation). Intelligent assistance of primary industries, and finally confidence in ultimate success. In other words, work of production under sane and (sensible government. That is in fact the objective of the coming election t 0 place a safe party in power to guide our-" destinies along right lines to the gaol of emancipation from crushing debt.