SCHEME PROPOSED

Hokitika Guardian, 24 April 1933, Page 3

SCHEME PROPOSED

-STR JOSIAH STAATP’S STATEMENT

LOV-DON. Ap'T 15

“Fear of a world dis ster will com•pe! financial circles to consider the suggestion of the emtornt economust, Mr J. LM. Keynes,” declared Sir Josiah ‘Stamp, a member of the Economic Advisory Council, in a speech .at Glasgow. Air Keynes’ scheme wits for international action in the direction of reducing taxation and increasing loan expenditure in order to increase ■world prices, and according ‘to Sir Josiah, “mere fright at the; word ‘inflation’ is no argument, but only a prejudice. .. “The world, moi’o than over, i.s bound together as a financial unit, and the tim?is are ripe for a. courageous advance jn tin direction () f a .spih'M'etirir.g ..scheme,, attached automatically. to the world price level,”, said Sir Josiah, who concluded with <the query, ‘‘Shall we be worse off it it, is ineffective?”

Professor T. E. Gregory thinks there is - a.. fß.uagfir...in.,, .the,,. scheme . bv the expenditure on public works leading colly to undesirable redistribution of existing n tional income, without stimulating prices of rawmaterials, or increasing the purchasing power of primary producing countiier,.

However, Professor Gregory save, tji-ait, Mir Keynes is right i,n urging th e suspension -of oinking .funds.