ECONOMIC STABILITY.

Auckland Star, Volume LXII, Issue 253, 26 October 1931, Page 9

ECONOMIC STABILITY.

GQVERNQR-GENERAL'S V|EWS

PACTS WHICH 3&IJST BE FACED

FUTUEE EE ( APE; OP THE WORLD.

"How, it may be asked, is the world ,q regain its ecpnopiic equilibriurn, and ;hose engaged in trade and industry

$hat sense pf security and confidence \vhich is essential to enterprise, and consequently to the maintenance, and pro-: gres.s of civilisation," asked 'the Goverpor-Genpral, Lord Bleclisloe, opening -the.: conference of the Associated Chapiberg of Copinierce. "To this question many' and conflicting will bp the answers of perfectly hpppst- men pf sound judgment and ripe experience. No, sane mortal amid the present : world I economic welter would claim to be p.p.ptijfjcal .

|"I . however,, tlpxt., .aipopg other opinions, which are daily gaining ajiherepts apipng thoughtful ;aijd gperienped. persons, whose views oh political, social apd religious questions are widely different, ' the' following . are. worthy of- serious consideration :":=

"(if Simplicity pf liying, thrift apd love of conscientious work—characteristics which made'm the past for the greatpesjs of the.British race—must once more perpieate every class of the community. "(2) Apy patipps}! habit ov national policy which of thrift must be discouraged* as inimical'to the publip wplfare. . j.*-,;" "■ . ' lts) 'The, drifting of popqlatpm to the towns." must iby various meaps be effectively cheeked. , "(4) The institutional support of physical aqd'iqep'tal defectives of every ciyiHspd pation is. too heavy a financial burden to place upon the backs of the- nation's workers. Tp prevent the multiplication, rather than to attempt the cure, of the unfit, should be the aim of every civilised Statue.. .'■■ ".

Debts Prqb|em. <?(5) Tlplpss the world is to becpme bankrupt' and sejr-respeeting nations reduced to a condition "of economic serfdom threatening the world's future peace, international war debts are bound tfi be materially reduced or. wiped put altogether..' ' - # n . , «'(6 l Unless gold is available m nvupn larger quantities "than it is at present and circulated more freely as the medium of commodity exchange, it is bound to give place tft appther standard of value or : 'else I to shares that standard with sij-ver pr some ptber metal. "(7)" The banking system of tne world; which has seryed its monetary requirWepts admirably, ■ while Britain to her credit, remained unchallengeably I the financial and pompiercial hub ot tne universe, and' economic internationalism | was less doniipant is bppnd to undergo some- modification |p nieet altered convVSf! !The expansion of public philan'tropy- and even" of cpipmepdab e public Sit which ever-increasipg upon must be retailed until fte profits of industry prqvide means and justification . "f Q\ A drift ibfa ppbhc ipdebtedness, except-" rigidly and courain real -pro--inimical to the public interest curfence wi'tk. returning prosperity.,

;. .: ; .Reduced iptgdyction Costs. ' ■"Yll)'-In a new and isolated country like" New Zealand •economic existence up op the P» export of its primary products* the much-needed increase of its population lean only be safely effected by the settle, wSitpndpr suitable conditions, qf mpre persops qp the land. The growing intlnsn?catln of husbandry justifies from; an econqmic I*e £te* ter division fl-f fertile land. <<?12V As the value of land products, allowing'for periodical fluctuations, is SHkely in future to rise appreciably ■Sore prewar )eyefe it is primary? producers to look for then Lonomic salvation to reduced costs oi Wuctipp rather than to the enhanced price Vf their putput. "(13) Steady prices ' are bettei .botn. for trade and for prudent public policy than alternating boqms an<l slumps.^ "(14) Uneconomic secondary industries, buttressed by abnormally hrgn fiscal protection, are calculated to put an undue burden upon other industries and to reduce the. purchasing power ox of other countries, the multiplication g relatively small-scale industries of the sime type with no mutual rationallySZI augmenting their costs with an excessive variety putput, may prove *ii» the future however Sel conducted, difficult to justify m the

P W^) in SS'and friendly aviation apd sympathy between primary producers, the manufacturers of their Suets and their distributers is essepsl to 4e prosperity of W*»&sW and to a full measure of. custom ana confidence on the part rf the general W "(li) Rapid turnover at a small mar, -in of profit is'mpre conducive bote te trade prpsptrity and to BfflWlW tpntment, than a sluggish tuynoyei a. a higher' individual margin with an accustele an4Mtimatelyupsa}eajile stocks. ■...'".•/., Long Credit Demoralising: i "(18) The allowance; qf Jong credit is [apt to demora&e'feth.trader and customer and'te enhance the $Q& essential commodities, tq the disadvantage of the poorer classes of the community. "(19) Tlie sale of the putppt oi a country's .'factories deserves all encouragement, as tending to stimulate local industry and prevent unemployment, but, failing the fulfiUnent qf these; conditions, it is pf paraniount import-1 ance to afford trade preference to tlie products of' those countries which are the best customers for the products of your own., "(20)" Public opinion, while encouraging healthy, ath]etie achievement, should foster' among the youth of the natiqn a love pf'work'rather than of pleasure.No mere or wprk-shy natiqn cap eypr achjeye greatness and a nation which has becornc great thrpugli hard/honest work will inevitably lose its g'reatness in proportion to its disinclination for work or its. endeavqpr tp shortcircuit the only sure path to prosperity apd happiness."