SPENDING MONEY.

Auckland Star, Volume LXVII, Issue 233, 1 October 1936, Page 9

SPENDING MONEY.

AIDING PROSPERITY. .j THE PUBLIC WORKS POLICY.; CANTERBURY APPROVAL. The view that the monetary expansion j which would result from the heavy j expenditure by the Government on public j works as part of its considered policy of | relieving unemployment would be a | factor of great importance in maintain- | ing prosperity, was voiced by Air. • X Hobbs, the, retiring president, at the J annual meeting of the Can | Chamber of Commerce, says the bt | When moving the adoption off-hc £ renort and balance-sheet, Mr. Hobba that the public works expenditure should aid in reviving trade and placing more spending power in the hands of the community. "This expansion of currency is against j the principles which have been generally observed in the past, said Mr. Hobbs, "but we are to-day living 111 a new economic world in which many old-estab-lished orders are going overboard and non-inflation is being replaced by a governed inflation. It is interesting that no country has achieved a recovery by the reduction of costs, and it seems that that once orthodox method of counterin" a slump is hopeless in a world-wide depression. I draw this conclusion from the statement that costs cannot be materially reduced, that nations, will not tolerate a reduction in the standard of living."