"ECONOMY PANIC."

Auckland Star, Volume LXII, Issue 57, 9 March 1931, Page 10

"ECONOMY PANIC."

A CAUSE OF DEPRESSION.

WISE BORROWING ADVOCATED

GISBORNE, this day.

The opinion that the depression is being accentuated by a form of economy panic was expressed by Mr. C. 11. Williams at a meeting of the Poverty Bay Sheepowners' Union on Saturday, his comment following consideration of the Government's proposed measures for adjusting the Dominion's finances.

Mr,. Williams' suggestion that the meeting should express its approval of what the Prime Minister had proposed met with general support, Mr. J. C. Graham stating that Mr. Forbes had shown great political courage.

Subseqiiently Mr. Williams remarked that there was one aspect of the Government's economy campaign which was difficult to understand. There had arisen a form of "economy panic" that was little short of political madness. Men were put on work in one part of the country for a short time, and then transferred somewhere else, with little regard to the respective value of the undertakings concerned. Nothing could be said in favour of such a policy. He did not agree "with the policy in connection with borrowing either. In his opinion it would be wise to raise reasonable loans at the present time, instead of waiting for the good times and then accentuating the booms. "It would be better to borrow wisely at the depth of the depression, when the money could be used to the best advantage. It seemed to him that the cessation of borrowing was largely responsible for the creation of unemployment.