CAN’T BE CASHED

Manawatu Herald, Volume LI, Issue 4527, 6 November 1930, Page 4

CAN’T BE CASHED

PARER PROMISES

ECONOPOLITIiGS IS SICK,

REAL MONEY TALKS,

'Party politics makes promises that sane economies cannot fulfil. Voters who exchange votes for political paper promises look to somebody to cash that paper. Soon they will 'be presenting the paper to i the new New South Wales Government. What then will happen?

In varying degrees the same thing is happening all over the world. Sir Lennon Raws, (recently returned to Australia from Europe, states: —

“I heard the British Secretary of State for Foreign Affairs (Mr. Arthur Henderson) say that the conflict between economic conditions and political aspirations among the Eastern races was the most difficult problem in British foreign policy. In New York I heard Dr. W. Simons —at one time acting-presi-dent of the Gorman Republic—speak of the danger to political stability in Germany of tlie unsatisfactory economic conditions there.”

P RODUCTION AND PRICES OUT OF GEAR.

Inward production is represented as both good and bad. It is bad where it reduces employment instead of reducing prices. The lower prices that might consume surplus production are prevented by 'devices to maintain existing pi'icelevels.

“Viewing trade generally,” says Sir Lennon Raws, “the world problem seems to be that of surpluses. In almost every country industrial hv agricultural production has increased at a greater rate than local 'consumption, partly by improvements in technique and partly bv artificial stimulants. The policy of trying to maintain high internal prices by tariffs and other means, and of dumping abroad the surplus, has led to retaliation and endless complications. Rationalisation offers a partial solution of the problem, hut it does not touch the major question of unemployment.

in South America and unrest in Europe are attributed to economic conditions, which, in the more advanced countries, are challenging the competency of the parliamentary system of Government. In England the increasing number of youths who graduate from school into the dole, and the number of men who, through lack of opportunity, are losing the will to wo/fk, are serious features of social life.

“The fall in commodity prices is directing attention to the unequal 'distribution of the worjd’s supply of gold. It is estimated that at 30th June the United States held 39 per cent, and France 10 per cent of it. Britain held only 7 per cent., and Germany nearly 0 per 'cent. This concentration of gold •in the United States and France is considered by some economists to be the principal cause of falling prices, and as France is still hungry for gold a further decline is forecast. The United States is still suffering from the collapse of the Stock Exchange market twelve months ago. WILL ONE-WIAY TRADE ENDURE?

“The opinion, seems to he slowly gaining ground that the United .States cannot extend her foreign trade materially if she maintains her prohibitive tariff on imports, unless she is prepared to leave abiroad the money due to her, as is (already happening in respect of a large proportion of the interest on the war debts due by other nations. The view is held, by representative men that ultimately the United States will have to cancel war debts and modify her tariff, but 41iis will not be done until she has had a much more severe taste of ■bad times than she has yet experienced.”

(Speaking before the New South Wales elections, Sir Lennon Raws said that feeling in London towards the difficulties of Australia was very tolerant'. “The resolutions of the Premiers’ 'Conference were favourably /received as an indication that Australia was properly tackling her problem. Iniproved confidence abroad in the Commonwealth should bo maintained. That can be done only by •balancing the Budgets and creatingl a favourable trade balance. But while I was in New York the unemployed strike occurred in Sydney, and it was splashed in great headlines across the newspapers. It is these things which create the impression that we have not yet awakened to the seriousness of the position, and that we do not understand what is necessary to put it right. • “The next thing to do is to reestablish our confidence in ourseltves. That can be done by the creation of the feeling that costs of production will be reduced to a point at which it will be profitable to employ and to buy and enter into industry with confidence. The position is very serious, here, but we have circumstances in our favour which other countries have not. Despite the troubles at present there is no other country in which I would prefer to live.”