PRICE CONTROL

Wairarapa Times-Age, 7 March 1939, Page 6

PRICE CONTROL

NEW DUTIES FOR ACCOUNTANTS. One of the most important papers submitted to the Fifth International Congress on Accounting at Berlin was a treatise by Sir Harold Howitt on “methods of computing cost and control of prices by public accountants.”After commenting on various schemes of price-control, he remarked: — “In times of -violent market fluctuations, when most of us wake up daily richer or poorer by amounts which we should hesitate, to spend on ourselves. when every man and every industry seems to claim a right to live irrespective of his competitive ability to do so, when capital savings as a means of securing future income appear precarious compared with the more certain enjoyment of spending, when the effect of currency and international problems seem to be a matter of anyone’s guess, there is a tendency towards recklessness and disregard of hard facts. "We have gone a very long way in a very short time in establishing various forms of controlled, in place of free, competition. Whether we like it or not this new technique has probably come Io stay for some time, and will probably be extended. The accountant, as such, whatever may be his political views, accordingly fills a most important role. His duties fall under various heads, e.g.:— (a) In helping in the formulation of schemes he should avoid being influenced by party prejudices, and should consider each case on its merits. He will probably do well to be very conscious throughout that he is applying a finite mind to problems which are infinite in their repercussions. and which in a more perfect world would probably be better left to themselves. (b) In helping in the administration of schemes ho should continuously stress that assistance is only justified if accompanied by efficiency, and that any power the industry may have been given in regard to fixation of prices or otherwise must be used with regal'd to efficient and minimum costs. He should ensure that an adequate- intelligence service is maintained on all matters within his province, so that a measuring rod of that efficiency is available. (c) l,n advising individual clients who are ■ parties to such schemes, he should warn them that though they do not amount to State-ownership they are a near approach to it and are perhaps even a last effort to avoid that end. In such circumstances the drive should continually be to keep down prices to a point at which no reasonabll- objection can be raised, and to ensure tbzt before distributing any surplus sufficient has been set aside for renewals and for keeping up to date. "'There is without doubt considerlable risk, as well as considerable good, I in what lias been done, and it remains Ho be seen whether the industries coni cerned respond in effort to the help ‘ that has been afforded them.”