The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, AUGUST 26, 1933. PLANNING AND CONTROLLING.

Hokitika Guardian, 26 August 1933, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, AUGUST 26, 1933. PLANNING AND CONTROLLING.

Ix the present uncertain condition of world .aftairs there is a great deal of planning and controlling going on in the hope of retrieving the national position. The action applies to both trade and finance. America is the latest country to enter the lists on a large scale and. with very liberal doses. There, the urgency appears to be great, and economic nationalisation promises to have a good run. Russia has a very elaborate plan of control on communistic lines, while Italy has a system of fascism., Germany is attempting a variation of fascism. Britain has a system in respect to finance now based on sterling—a degree of standard value in its own country. In trading, Britain now proposes quotas to restrict imports which interefere with internal production by undue competition. . Most countries have their tariffs to the same end. New Zealand has a high exchange rate to help out the returns for produce sold overseas. This growth of general economio nationalism must tend to destroy the benefits of international trade, because of the restrictions. And that very restriction causes an instability in the monetary system, and artificial aids are sought by management which in time adds to the national difficulties. That is ,so in regard to New Zealand high exchange, but the general international situation is evidence of the dislocation of world trade with the countries producing goods which cannot find an acceptable market. There is thus a manifest difficulty to international trading, and that is the special reason why the European countries at the London Conference sought for a decision as to a stabilised currency. The United States elected to paddle its own canoe, so to speak, and the country is now in the midst of a great experiment. But there is nothing new in the system. It is but a variation of planning and controlling, though instead of doing it piecemeal as other countries are doing by way of palliatives, America is going the whole way at once in the endeavour to create prosperity. There must be a degree of success at the outset. There are many vacuums to be filled, but will the scheme stand tile test of time ? The old principle of supply and demand will assert itself, for when the new system satisfies internal conditions, what of the next door neighbour, and how is he to meet his obligations if he may not he assisted to do so by any exchange of trade ? There are factors in the game which cannot be controlled. The mentality of the people is a counter, and it is far from stable as we have seen with the experiences in the American stock exchange. jThe get-rich-quick principles can be very upsetting at times and are liable to make financial affairs for the time being chaotic. Neither can the world situation be ignored. Nations are so much interwoven nowadays with trade and finance that the success or failure of anyone of them has its general effect on world affairs. The big adventure in America will be watch'd closely, and may be imitated to some extent, but an early judgment may not be sound. Tune ar.d the temperament 0 f the people are the test for there, are signs already of influential opposition. Plannn.g and controlling gauge all the factors, and ft it could the variations would be beyond human calculation. Any system requires to be applied cautiously and with some regard for the value of the human factor in time of crisis.