THE WAY BACK TO PROSPERITY.

Press, Volume LXVIII, Issue 20623, 12 August 1932, Page 12

THE WAY BACK TO PROSPERITY.

ECONOMIC TROUBLES OF DOMINION. DISCUSSION BY CURRENCY COMMITTEE. The findings of a sub-committee set up to formulate methods of re-estab-lishing economic conditions in New Zealand were the subject of discussion at a meeting last evening of the North Canterbury Currency Committee. Mr L. 11. C. Macfarlane presided over a good attendance. Mr Macfarlane, in presenting the suggested remedies, said that they were not new. They had been tried in ot,her countries, but with the important difference that they had been tried only piecemeal. Half measures to-day would be useless, he said, and to restore economic conditions on a sound basis the total adoption of these suggestions was desirable. Remedies Advocated. The conversion of all State and local body loans, internal and external, to a lower rate of interest was needed. This had, been dono in Australia and Great Britain very successfully. Next, there should be created by the State a Currency and Exchange Control Board, having a definite charter, giving the State power to appoint, but leaving policy matters to the Board. This was, lie said, in reality a central bank, already advocated by the world's leading financiers. It would also be necessary to control exchange up to a level sufficient to remove partly the disparity between exporting producers' returns and internal costs. Following this remedy, he suggested that tariffs be reduced so as to prevent the increased exchange from increasing the cost of living. A further remedy was the passing of legislation to reduce tho lending and borrowing rates of interest of the banks and other similar lending institutions. The authorisation by Parliament for the Currency: Board to create several millions of emergency credits was another urgent step which must be taken. Half of this sum would be lent to the banks on a very low rate of interest. This money would then be made available to farmers, at tho same rate of interest, for the specific purpose of increasing or cheapening their production. Advances could also be made to secondary industries of a national character, provided they could show that, by rationalisation, they could increase production, employment, and consumption without immediately increasing the cost of living. The other half could be lent to the Government on the same terms for development purposes that would immediately increase or cheapen production and absorb tho unemployed. The final suggestion was that tho future policy of the Control Board should be in adverso ratio to the fall and rise of export prices.

The adoption in full of those suggestions was, it was claimed, the only way out of the present financial muddle. Resolution Adopted. In the discussion which followed general approval was expressed of the proposed suggestions. - In addition, a resolution submitted by Dr. I. W. Weston was passed:— That it bo recommended that steps lie taken to raise the general level of wholesale prices in New Zealand towards those existing about 1929 by means of concerted monetary action. Au address was then given by Mr J. R. Corrigan, an ex-member of Parliament for Hawera. t LAND SPECULATION. GOVERNOR-GENERAL'S WARNING That the problem of land speculation would have to be tackled seriously before a return to prosperity could be expected was a statement made by his Excellency the Governor-General (Lord Bledisloe) in his address to tho C'hristchurch branch of the lloyal Em. pire Society yesterday. "A 'reasonable element of speculation is the very essence of enterprising business, but excessive speculation in tho land of a settled country during periods of high prices for its produce is calculated to undermino primai'y industries, outweighing the economic benefits of agricultural science and stimulating revolutionary propaganda," said his Escelloncy. "Land as a source ,of wealth ceases to fructify if it is an object of violent speculation, and practicable measures for avoiding tho repetition of this anti-social process are worthy of tne serious consideration of economists and legislators alike," said his Excellency. "A stable country is one in which husbandry is a profitable occupation, and in which there is no violent fluctuation in land values as the result of the operations of those whose main object is not the winning of wealth from the land but temporary profit at its expense. Before prosperity returns, this problem will have to be resolutely tackled."

AUSTRALIAN WOOL INDUSTRY.

MEASURES FOB REHABILITATION

(rxiiiD razss association— bt ihctjuo TH.E(}*U?H—COPTWGHT.)

SYDNEY, August 11

The Federal Cabinet has been requested by the wool-growing organisations of Australia to appoint a representative committee, including experts, to formulate measures for the rehabilitation of the wool industiy.

PRICE OF GOLD

(VSII'ED PUES9 ASSOCIA.TIOK—BT ELZCTSIQ TETJSGHAIH—COPTIHGHT.)

(Received August 11th, 5.5 p.m.)

LONDON, August 10. Gold (per fine ounce") is quoted as fol lows: — t & b. d. August 10th . . 013 2 August 9th . . . 5 18 7 August Stli . . <> 19 0

PRICE OF SILVER. \BKITISH OFFICIAL WIKBI.SS3.) (Received August 11th, 5.3 p.m.) RUGBY, August 10. Silver (pence per ounce) is quoted as follows: — Aug. Dtb. Aug. 10th. «potr • ■ 17 13-16 17 J .Forward .„, 17* .W J5-16