ECONOMISTS STRIKE HOPEFUL NOTE

Rotorua Morning Post, Volume 1, Issue 12, 5 September 1931, Page 3

ECONOMISTS STRIKE HOPEFUL NOTE

("Post" Special Commissioner.)

experts' evidence n.z. has come through before and will again "CONSTRUCTIVE AND HELPFUL"

WELLINGTON, Friday Taking advantage of the respite from sittings of the House of Representatives the inter-party conference worked under pressure to-day, with sessions during the morning, afternoon and evening. Evidence was heard at considerable length from economistsi, Professor Murphy appearing in the morning, Professor Tocker in thp. afternoon and Professor Belshaw and Mr D. O. Williams, lecturer in rural economics at Massey College, at night. It is said that economists rarely agree as their subject leads to conclusions along divergent paths. However that may be, the Prime Minister regarded the afternoon's evidenqe as helpful and constructive and he remarked that he felt the committee would benefit by what had been placed before it. He added that the economists were ht a disadvantage in that they had no knowledge, as the members of the committee did, of the evidence already tendered from various sections of the community and therefore had not in their possession the data necessary to enable them to arrive at definite conclusions. It is gathered that Professor Murphy took the line that there is no magical vray of overcoming the country's troubles and that the people must adapt themselves to a restriction in the national income, brought about through the fall in prices for primary produce. Nevertheless, it is understood that he foresees a definite improvement in produce prices by 20 per cent. or 30 per cent. within 10 years. One gathers that the final banking evidence was of a strikingly optimistiq spirit. vFrom Ihe little that can be learned in lobby talk it seems that the view is taken that New Zealand has faced a^depression before and come out of it successfully after a period of sacrifice and economy and that the present world slump will, in the same way, soon produce its own solution in a stabilisation of values and a consequent return to prosperity. It is understood that members of the committee gained an impression that, whatever steps may be taken as a resuit of th'e conference to rehabilitate tbe country, the banks will be readv to co-onerate.

It is, perhaps, not unnatural that the sittings of the committee have given rise to anticipations of recommen.'dations. A persistent rumour has gained currency that a further wage cut is to be made. The extent of the reduction, according to gossip varies from 5 per cent to 20 per cent. It Can be definitely stated, however, that no proposal of the kind has yet been decided upon for the simple creason that the committee has not yet got down to the stage of sifting the evidence and framing its conclusions. Moreover, it is gathered that practically nothing has emerged from the evidence in justification of further wage and salary reductions, the view being taken by most of the witnesses that such a course would prove restictive to commerce and business generally. The work of the conference is now nearing completion according to a statement made to-day by Mr Forbes. He said that the committee will sit to-mOrrow and that he expects the taking of evidence will be finished by ■"Wednesday and that the committee will be in a position to present its report to the House by the following Tuesday.