ECONOMIC PROBLEMS

Rotorua Morning Post, Volume 2, Issue 225, 17 May 1932, Page 6

ECONOMIC PROBLEMS

address to rotary SOME WORLD DIFFICULTIES OUTLINED BY DR. SCHOLEFIELD TASK FOR OTTAWA Taking as his subject the present economic situation prevailing throughout the Empire, Dr. Guy H. Scholefield, Government librarian, gave a very interesting address at the weekly luncheon of the Rotorua Rotary Club yesterday. In speaking of the Ottawa Conference, Dr. Scholefield, said that the conference, which is to take place in July was creating more interest among the public than had ever been given to any similar gathering. Former conference's had dealt mainly with the problem of Empire consolidation, whereas the Ottawa eonference was different, and it was felt that much good would result from agreements, which it was hoped would be reached dealing with measures for economic unity. That meant the development of trade within the Empire so that New Zealand would have a better market in England and other Empire countries for her goods and in return would treat with greater hospitality goods of Empire origin. He thought that difficulties would be sure to arise at the eonference as it would be difficult to find many lines for trade which all concerned would agree to accept. He also pointed out that the free trade spirit was still strong in England and this might cause some difficulty. What seemed more likely was that the eonference would deal mainly with planning. That did not mean merely controlling distribution, but making production correspond with consumption. In a way it resembled the German proposal for rationalisation, which meant reducing production to the level of consumption. Such a system would obviate the destruction of commodities not used as had been done recently in some countries.

Too Much Production It appeared that the position to-day was a case of too much production with the result that warehouses were full of what people did not want or could not buy. Further, production was being speeded up by machines too rapidly, and machinery was taking the place of labour and throwing men out of work. International debts were another thing that was affecting the situation, Dr. Scholefield proceeded. He then briefly outlined the principle of the Russian Five Year Plan, which had for its main object the overcoming of that country's comparative baekwardness. Russia, he said, was now trying to do what she should have done 100 years ago. He did not know whether the Russians were succeeding in their efforts or not, for that was as yet an open question. The effect on the Russian people was also to be considered and that could not yet be judged. In New Zealand, Dr. Scholefield said, there was some uneasiness as to the effect of the five year plan on our own prosperity. To a certain extent it might have an undesirable effect, but he pointed out that before the war Russian butter was already on the London market on a large scale. Workers' Status Raised He believed that the status of the Russian working man had now been raised and that he was now better off. As a result he was demanding and using things he had never used before and these the country was now providing. The Russian export trade in timber had become extensive and the fiilt appearance of the timber on the overseas markets of the world had very nearly caused a panic. This competition, however, was not as serious as it might have been for Russia herself suffered from a timber famine, due to a huge rebuilding programme, and it would be years before really large quantities of timber would be exported. The activities of the New Zealand meat and dairy export boards, said the speaker, were not planning as the term was considered by the world now. Those bodies were not restrieting production as necessity demanded.

Method of The East Dr. Scholefield then outlined the methods of the East. China was content to produce sufficient for her own sustenance, the holdings of its people being small. The Chinese did not rely on overseas conditions for they 'were not exporters. Manchuria on the other hand was producing for export and 27,000,00Q farmers had settled there in the last 20 years, to work for this purpose. That was the reason Manchuria was so hard hit at present; its prosperity is closely associated with outside influences. If the attitude of the Chinege were to change in the future, he said, and a system of large holdings adopted, a great many peasants would be forced off the land and the effe„ct would cause considerable trouble in that country. In conclusion, Dr. Scholefield said that world conditions were at present so involved that it was not possible to form definite conclusions regarding probable future developments. On behalf of the club, Mr. J. M. Roberts thanked Dr. Scholefield for his interesting address.