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Hokitika Guardian, 20 June 1933, Page 4

lx the course of a lecture iat CamDi'icgo ai. i'iaiu.iu, a former From 11 Aiuiisuv or Commerce, reicired to in© diiiicuines of economic disarmament, lie ©aid trial the abandonment cv rostilcwojis would endanger tn© stability of currency. To be enxvtive it wou-u have to 0© siuuduaiuous. Then there was tne eu©et on private interests, wmeh would be prejudiced by ouch action. Air Maynard iveynes wanted to go bade to the conditions prevailing 111 fykd, when prices v.eie high, those mga prices’w©.e the result of pjiid't-uU 1 dilution. The only way to get out of tire crisis was by lowering coTs of production and adjusting 011 tout to market possibilities. Mr iuyncij proposed to increase the demand foT goods by creating more money. In the speaker’s opinion, it was not a question of* the amount of money, but it was the rapidity with which it circulated that would bring prosperity. Referring to Mr Keynes’ proposal for the hsuing of State loans for pubic works, M. Idandin asked how the loans were to be redeed; at what rate of interest; and what would be the repercussions? The Budget would have to be balanced, or people would not invest. The rat© of interest would be raised by the .large demand, and the Government would he unable to borrow; cheaply. The' banks would advance only for short periods, and if money were borrowed for long periods tile public would want higher rates of interest. High rates on public loan© would burden the Budget for many years to come, If the Works proposed were nompioductive ther© would be a heavy burden on finance, and if they wore productive prices would fall. The world would not get out of the present crisis by creating fictitious means cf payment for the disposal of the realities of indebtedness. They must cease to believe in monetary inirao.es. He was afraid of large schemes of indefinite extent, and preferred to keen nearer to the earth and to economic realities.