WORLD ECONOMIC PROBLEMS.

Auckland Star, Volume LXIII, Issue 27, 2 February 1932, Page 5

WORLD ECONOMIC PROBLEMS.

REPARATIONS AND WAR DEBTS. NEW ZEALAND'S COURSE. (By Telegraph.—Press Association.) WELLINGTON, Monday. Opportunity was taken by the chairman of the Equitable Building and Investment Company, Sir Harold Beauchamp, at the annual meeting to-day to touch upon a few economic problems. Sir Harold said eminent economists, bankers and financiers had reduced the causes of the slump to three salient factors, reparations, war debts and high protective tariffs. If Germany failed to pay her reparations, debtor nations would be unable to discharge their debts to the United States, so that any relief given to Germany must be followed by a reduction of war debts. The adjustment of tariffs would follow as a consequence of an adjustment of reparations and war debts. New Zealand must adjust expenditure to conform with the reduced income. In respect of nominal wages, there had been a distinct and significant lag as compared with export prices. This unquestionably called for early adjustment, but New Zealand must place chief reliance on an adjustment of the values of securities and services. "A new view of the value of land of all grades must gain currency," said Sir Harold. "No longer can we assess the value of dairying land at £100 an acre and two-sheep country at £30 and £40 an acre, prices paid in boom times. What New Zealand needs to-day, more than cheap money, is cheap land. Incidental items such as goods and services must also be recast to meet the altered conditions." He said the Arbitration Court had outlived its usefulness. Among other things, the Court should be deprived of the power of ordering preference to unionists. The effect of this preference bad been to raise a great army of union secretaries. Tt was quite impossible to indicate when there would be any abatement in the worldwide economic blizzard, but he ventured to think it was now at its height, and that a change might be looked for toward the close of this year. Much would depend upon the result of the conference to be held shortly to consider the question of reparations due by Germany and international indebtedness. Tf a satisfactory conclusion was reached, there ought to be a renewal of confidence.