The Bay of Plenty Times SATURDAY, FEBRUARY 22nd, 1941. AFTER WAR PROBLEMS

Bay of Plenty Times, Volume LXIX, Issue 13271, 22 February 1941, Page 2

The Bay of Plenty Times SATURDAY, FEBRUARY 22nd, 1941. AFTER WAR PROBLEMS

For some months past, Mr Arthur Greenwood, Minister without portfolio, and a member of the War Council, has been studying and will continue to study, the possible and probable economic reactions and repercussions that are likely to be experienced after the war. We know that after the last war, the economic structure of the world was very much disturbed, and in 1929 we experienced the biggest world-wide slump ever known. The current war is more fierce and destructive than the last, and has prostrated quite a number of small nations. It is quite clear that all Europe will emerge from the war very much impoverished, with industries wrecked and larders empty. Outside of Europe, many countries have been affected by the war, for all have had to spend lavishly on defence measures. It seems inevitable but that the world must face a condition of things never before known either in their magnitude or their complexity. The British who are business people at all times under all circumstances, have no illusion on this subject, and the survey that Mr Arthur Greenwood is making may give the British some opportunity of making preparations now to minimise the worst effects of the post war economic cataclysm. There are quite a number of probable economic disturbances that are apparent to everyone. The people of Continental Europe will emerge from the war famished, literally hungry, and to appease their hunger in part at least, steps must be taken now to find out what food will be required and how and where it is to be obtained. Fortunately •Air Herbert Hoover, ex-President of the United States, is interesting himself in this matter. He was the food distributor after the last war, and carried out the job satisfactorily. This of course would be the initial distribution and would be .supplied free. But when this voluntary scheme ended the people would have to fend for themselves. That means that some plans must be in hand to bring about industrial revival throughout Europe. But this is not as easy as one would think. The industries would be producing and manufacturing goods for sale, and the problem is to whom are the goods to be sold? At the outset it seems there must be some sort of barter trade, for the currencies of the countries would need overhauling. The money mechanism of the world needs to be put on a sound basis, the foreign exchanges adjusted, and international trade restored to its proper position. The world will need the exports and imports of every country, and all trade restrictions with which we have become familiar in recent years must be abolished. Putting the world into economic order after the war will be a very big job, and the brunt of it will fall upon Britain and the United States. Every country, in fact every individual in every country must lend a hand in this revival effort. The things that seem certain are that commodity prices will be low and money rates high. That seems inevitable. But the trouble of making this special survey should not be left entirely to Britain. The Dominions could do something towards it for they will all have their economic troubles to face. The problem needs to be studied in New Zealand, for exports of primary products are the basis of our economic well being. It would be interesting to know what will be the probable effect of the ban on meat exports to the United Kingdom. What would be our position, should there be an all round drop of say 25 per cent, in overseas prices for our produce? How would this affect domestic economics in the direction of work and wages? These matters should be studied now and the people told frankly what may hap-' pen. Now is the time for action.