The Bay of Plenty Times MONDAY, AUGUST 21st, 1939 ARTIFICIAL

Bay of Plenty Times, Volume LXVII, Issue 12825, 21 August 1939, Page 4

The Bay of Plenty Times MONDAY, AUGUST 21st, 1939 ARTIFICIAL

The whole economic life of the world appears to be artificial. The industrial life of the leading nations is satisfactoiw, that is to say, the industries are working to capacity on munitions and war ecpiipment to the exclusion of peace time consumer goods. This in itself is artificial. The industries are not contributing to the welfare of mankind, but producing lethal weapons of various kinds for the destruction of man, and yet those who have ordered this production, no doubt, wish it were otherwise. But the position is artificial. The Four Year Plans and Five year Plans, now familiar terms, and which have to do with war preparations, are nearing their close, and what is to happen then ? The world is concentrating oh a particular line of action, and, more or Jess, neglecting all else, and when this artificiality ends are we to face a depression, perhaps a great deal worse than the last? When the armament race is ended, the world will have considerable difficulty in resuming normal trade, for the trade of the world is to-day strangled. Britain-is endeavouring to maintain her .export trade by adopting devices, such as the Exports Credits System. In the meantime quite a number of nations have given themselves over to self "sufficiency, that is, they are restricting imports while endeavouring to expand exports, a system of one-way trade that will never find favour in world economics. Even if* war preparations are to end at once it would take a very long time to revive international trade. The highly militarized nations like Germany, Italy and Japan, are trading heavily on paper currencies within their borders. Germany has abandoned gold jn her monetary system, and has substituted what is now known as “Labour Currency’ 5 based on the supply of goods, or, in other words, on production. This kind of currency may be quite satisfactory in Germany where the people cannot get any other currency, but the Labour Currency of Germany would be regarded as “black” outside Germany. The totalitarian States are endeavouring to keep up a semblance of trade through barter agreements. At the present time the position of the Stock Exchanges is quite artificial, and most, if not all, the commodity markets are in an artificial condition, because their immediate future is uncertain. Everyone feels that war is likely this year, but who can venture upon a definite opinion regarding the position say, in the European spring. With so much of the war necessities ready at hand, with so many millions of men trained,for the great murdering act, and with the dictators finding it necessary to provide spectacular stunts, to divert the attention of their nationals from dwelling on their miseries, a war may come at any time. Yet no one really wants Avar. The times are artificial and unreal, and when the world has to face up to realities and the eternal verities, we Avill all have unenviable experiences.

THOUGHT FOR THE DAY

THE most certain sign of wisdom is a continual cheerfulness. —Montaigne.