THE LEVEL OF PRICES.

Shannon News, 26 April 1929, Page 1

THE LEVEL OF PRICES.

DOWNWARD TREND EXPECTED. VIEWS OF AnIsOONOMIST "New Zealand cannot rely any longer on her economic difficulties being solved by a general rise in the level of •prices; the solution must be found through reorganisation within the country " In these words Professor J. tf. CondJiffe, now research secretary for the Institute of Pacific Relations, referred the other day to the reaction ot world prices on the commercial and industrial life of the Dominion. _ The consensus of economic opinion was that world prices would tend slowlv downward for some time to come, suid Professor Condliffe. There might be some immediate improvement, but there was not likely to be an era of steadily rising prices, as was the case before'the war. In most countries the tendency w«s v .fairly steadily downward. . i "I have discussed this trend of the future with a good many economists, particularly in America, and can find no evidence that it is likely to be reversed for some time to come," added the professor. '-The; immediate outlook for New Zealand appears very favourable, but it would be a mistake to regard that as a solution of all our difficulties. Any short period recovery in conditions ought not to be mistaken for a recurrence of the pre-war condition of prices rising continuously and accumulatively." Expenditure on Research.

As to-the best method of meeting this situation. Professor Condliffe believes that to avoid an undue revaluation of property and stock in the years to come increased production is necessary. That, he maintains, will depend primarily on the Dominion's willingness to. bring about better business organisation, and ultimately on scientific research.

"I think the work being done iby the Department of Scientific and Industrial Research in New Zealand is sound and that it will lead to direct results very quickly," he observed. "The Dominion, however, ought to realise }t is still not spending anything like an adequate amount on scientific, research or .upon UEivers.ity education in' general. 'This is not a comparison with American standards of education expenditure. Tne Japanese universities, although Japan is a much poorer country than New Zealand, are much more adequately endowed in comparison with the wealth of the country and also in comparison with other branches of education.

'lf Now Zealand wants leadership t.) solve its problems, economic/ political and social, it must be prepared to pay for the training of its leaders in its universities; This means, primarily, more adequate as'sistanc for the university teachers to enable them to direct their asisstante in research and to enable them to give more time and specialise more in the advanced branches of their own subjects. It means more adequately equipped and better libraries." •'Danger of Mediocrity." ' Professor Condliffe said he was inclined to agree with the remark made to him on landing in the Dominion,-by a competent observer from overseas that "the great danger staring New Zealand in the face is mediocrity." He felt more strongly since seeing othei universities that the independence oi the university colleges was an essential step in order that the individual teachers might be able to specialise more and develop the higher advanced parts of their teaching in accordance with their own interests and specialises.

The New > Zealand University, he maintained, was very weak in posi graduate studies, although'there was a healthy tendency to give fellowships enabling students to go on for a year or two after graduation, doing research and a certain amount of teaching, thereby relieving the professors of some part of the routine work by which •they wore bound. In.his opinion the abolition of the external system of examination would follow very quickly after creating the independence of local universities and would remove future handicaps upon effective teaching and research. ,