ECONOMIC TREND.

Auckland Star, Volume LXX, Issue 139, 15 June 1939, Page 27

ECONOMIC TREND.

SYSTEM ALWAYS CHANGING

PROKKSSOR RoDWT.LL'S ADDKKSS

That a return to tho laissez-faire methods of the l!Uh fentnry was impossible, and that an increasing measure ot control by the State was inevitable bccaihse of changes in the economic structure was stressed by Professor H. I!. Rodwell during an address which he delivered at an Auckland Credit men's (lub luncheon. Mr. P. Hall presided. In dealing with the question as to whether we. were facing chaos or

whether there whs a new order dawning, Professor Kodwell said there was a definite and widespread increase in nat ionali-in. accentuated by the aftermath of the war, by the recent economic depression, and by the funda mental changes in a society that was always changing. In the conqueror countries there had been economic dislocations and resultant over production liecause of the creation of industries mode necessary in war jieriod. and in the conquered countries nationalism bad arisen out of necessity through treaty provisions forced upon them. Nationalism, in the latter case, which originated with the idea of gaining equality, led inevitably to tbe idea of domination.

( limine was inevitable, and to resist it simply because it wiw change was to fail. It was necessary in the interests of civilisation that there should be more control of the production of goods, and that greater safeguards should be provided to arrange equitable and economic production. It was not good to acquiesce blindly, however, in whatever might lie done for the common good, as many mistakes were made in the preliminary st ages. Illustrating the difficulty that confronted countries, the speaker quoted the guaranteed price for New Zealand farmers. This would l>e good as long as it could be shown that there was an increasing consumer market. With a falling population in the overseamarkets, it was inconceivable that the market would continue to absorb greater production, and with tlie artili-

rial "bolster" of" the guaranteed price, this would bo thp result. Ju ordinary times t lie market would adjust itself automatically bv some farmers going out of the business when it proved unprofitable. As it was, however, sooner or later other methods would have to be adopted to ensure that production was to some extent at least controlled. There was too much rigidity in the system at the present time and adjustment* were not continuous. These were problems that li»<l ,to be faced, and the duty of tin* people of every country was to assist in the solution. It wa« useless attempting, isolation. because nations were so interdependent that isolation could lead to-rto-thing less than ultimate disaster. On the other hand, extreme nationalism would le«ul to war. It was necessary that people should get understanding ami assist in what confronted the world to-day.