NO WORLD DEPRESSION.

Auckland Star, Volume LVI, Issue 244, 15 October 1925, Page 7

NO WORLD DEPRESSION.

KEYNES' WORDS OF WISDOM. ORGANISING FOR PROSPERITY. LONDON, October 14. Mr. J. M. Keynes, editor of the "Economic Journal," in addressing the Manchester branch of the Federation of British Industries, demanded that the Government should begin to organise for prosperity. He said it was no longer true that there was world depression. The United States had never had such unmitigated prosperity as at present. It was not true that Britain's customers, with the exception of China, were abnormally impoverished. Home trade was good on the whole and the foundations of prosperity did exist. The reason for the existing unemployment was that the Bank of England had seized the opportunity of restricting credit with a view to lowering prices in the interest of dollar exchange. Britain's manufacturing costs, measured in gold, were higher than those of her chief industrial competitors. It was purely a matter of monetary maladjustment. There was a school of sensible economists, including Mr. Reginald McKenna and Sir Alfred Mond, the members of "which believed prosperity to be more important than the dollar exchange. That school -was pledged to stimulate new oapital and to encourage business. This policy, in its early stnges, would probably lead to loss in gold, but the risk must be taken to prevent the suicide policy from winning.— (A. and N.Z. Cable.)