QUESTIONS OF CONTROL.

Taranaki Daily News, 6 January 1921, Page 4

QUESTIONS OF CONTROL.

Speaking at Opunake recently, the chairman of the local Harbor Board (Mr. T. P. Hughson) expressed the opinion that it was the duty of the Government to regulate imports and exports. Possibly he did not mean this view to be taken literally. Government control was necessary during the war, and though it has been continued since, there has arisen a persistent outcry for its removal and a reversion to the old law of supply and demand, which alone ckn be relied upon to promote trade and industry. Mr Hughson also expressed his fear that provision was not being made ifor lean years, and he stressed th 6 need for the curtailment of the “excessive importation of motor cars.” There is no cause to worry over that matter, which the present financial stringency will effectually settle, for there are not wanting indications that these cars will prove rather difficult of sale, and the importers may be seriously affected. A recent cable from New York said it was a significant sign of the times that the main Ford plant at Detroit, employing 5000 hands, had closed for an indefinite period, a course which ’ was followed by many other makers of high priced motors. This slump may be only a pass-ing-qMiase, but it demonstrates that the law of supply and demand is asserting itself The longer Government control continues the more remote will be the time when normality will be reached and the economic position improved. Wholesome competition is the life-blood oi trade, and in order to preserve the financial it is necessary to stimulate production and employment as well as to expand the volume of exports. A Government that cannot effectively control its own departmental expenditure can scarcely be regarded as an ideal means for controlling products. That considerable extravagance is in vogue cannot be truthfully denied. .Instead oi controlling trade matters Governments would be far more usefully employed in setting an example in economic administration and giving the people a lead in the right direction. Whether the proposal to institute a system of financially rationing the expenditure of Government departments, as is being done in France, will materialise remains to be seen, but there can be no question that some such action has become imperative. That it would meet with hostility is certain, but if after careful investigation a fixed sun\ was allocated to each department, and the responsible officers were given to understand that if they did not make both ends meet they would have to give place to others, it is likely a great saving would be effected. If the nations are to recover from their heavy financial troubles, drastic measures must be taken, and every encouragement given to the people to become self-reliant, and not subject to the caprice of Ministers.