The Guardian And Evening Star, with which is in corporated the West Coast Tunes. THURSDAY, OCTOBER 12, 1933. ANOTHER ASPECT.

Hokitika Guardian, 12 October 1933, Page 4

The Guardian And Evening Star, with which is in corporated the West Coast Tunes. THURSDAY, OCTOBER 12, 1933. ANOTHER ASPECT.

1 herb is an other aspect to the situation in America, referred to yesterday, discussed by the banking bulletin mentioned. It is held that there is money enough to meet the requirements of increased trading if the people have the will to buy. It is pointed out that the- increase noticed. in trade has not exhausted the supply of money and credit—-the money market was stirred scarcely. The facilities lor buying are ample, "lb ignore that fact and create additional facilities would be to /prepure the way for another riot in reckless speculation. To sum up, it is considered tliat derangements in industry and trade in the United ■.States, adequately account for the trade disorder and fall in prices over the last four years without- dragging the monetary system in on vague suspicious. That is another way of stating the old axiom about supply and demand, the former being adequate if the latter is active. Another point is touched on in the action of the Government assisting in farm relief. The action, it is pointed out, is based on the theory that disordered production is responsible for the agricultural distress. The National Recovery Act, it is further no luted out is based on the theory that disorder exists in industrial relations, and both of these theories unquestionably have truth enough in them to account -for all the troubles, which is . quite a candid way of putting the position. Next we have the outspoken view that inflation of the currency is no- remedy for disordered relations in production and trade. This action is likened to an attempt to start a stalled motor car by lubricating the bearings when the power-generating mechanism was this is no time for radical experiments this is no time fo rradical experiments with money, particularly-of the kinds condemned" by all past experience. There are uncertainties enough without creating unnecessary ones. All of which goes to . show how difficult it ,is for mau-nvade rules to overcome the working of the basic conditions relating to supply and demand. America lias the men and the money to tide over the troublous times, but the initial difficulty is to find the right path to follow. Creating work for work’s sake, is too artificial to effect permanent good. Wliat as necessaiy is to create the demand, and therein, lies the chief obstacle. If the pouring out of money would do it, the United States could do much in that direction, but the effort must have an ordered objective, -and by the very spending, to create more and more demand. When the goods were needed, the countries were hhle to produce more land more, till production becoming universal and money disappearing into bonded gold and securities, the will to buy was (reduced palpably. Now to overcome that state of international affairs is the problem, for world recovery is an international task and not a national one only. It was in that respect that the President’s plan was lacking from the outset. With the great resources of his vast territory, it was thought there was backing enough to create prosperity on artificial lines, which appears in truth to he the plan. Naturally it is succeeding in part, but the whole may yet he in jeopardy for the very reason that it is not a world plan—an international reorganisation of trade and money to give the fillip -to create the permanent movement necessary to bring succour tc the suffering nations.