THE ECONOMISTS' REPORT.

Auckland Star, Volume LXIII, Issue 59, 10 March 1932, Page 6

THE ECONOMISTS' REPORT.

Mr. H. E. Vaile considers the economists' report is useless and that the only certain-, remedy is to let everything find its natural • value. It has become the fashion to quote Professor Gregory in opposition to our local economists. In his addendum to the MacMillan report, in discussing means of adjusting costs and incomes to the lower level of prices, Professor Gregory says: "If we do nothing at all, but wait upon events, we must face the danger, but not the certainty, of"i cumulative loss of export markets, a growing lack of confidence in the economic strength of Great Britain. . . . All that would happen would be that our economic strength would '- gradually diminish, and with it would go the ' : hope of a progressive improvement in the'standard of life of the population. . ~ . For •'''• ■my own part, I do not believe it possible to"' sit still with folded arms waiting for something favourable to turn up." His own. * ; remedy is at bottom the same as that suggested by our economists—reduction of costs and increase of prices by credit policy. Further support to our economists is given hy the signatories to addendum No. 1, including Professor Keynes, Reginald McKenna and' Cecil Lubbock, a director of the Bank of Engi" > land. In discussing depreciation of the cur-*>:: rency, they say: "For a country which' Was-• •:' not an international banker and was not owed" •.' large sums from abroaxl fixed in terms of": sterling this would be the simplest solution." ' Actually it has proved the simplest solution in Britain and we have every reason to hope & for similar results from the same course here. H. W. HADDOW.