PRICE STABILISATION.

Press, Volume LXIX, Issue 20905, 12 July 1933, Page 15

PRICE STABILISATION.

TO THB EDITOR 0» TH* PKESB. Sir, —Is it not quite possible that in the question of temporary stabilisation at any rate America has taken the right action? The Associated Chambers of Commerce in London, according to cable reports, appear to have approved of suggestions which an eminent authority stated were on similar lines to the American plans, whilst the representatives of our own and lister dominions only a week ago were asking Great Britain to take certain itepß in the direction of raising sterling prices, which would have meant action by Great Britain on parallel lines to the United States. It is quite possible that if the gold countries had had their way we might have had what would be considered a successful and unanimous conference, but the raised price levels which were being looked for as a result of the conference's labours failed to materialise. Sixtiy-one countries which cannot manage their own affairs meet to put the world right, but one of them says, "I had better put my own country right first beiore I can start to do anything to help the rest of the world." The final result may »how that that country was acting in a common sense manner. In the "Economic Journal" 12 months ago Professor Jens Warming, of Copenhagen, when discussing certain measures for dealing with unemployment during a depression, stated that there was often hesitancy in adopting these measures because they would tend to depreciate a country's currency, but that If every country acted simultaneously on the same plan the effect on the exchange rates would be negligible.

it is quite likely, therefore, that if every country were to set to work to put its own unemployed to work at standard wages for, say, a two or threeyear plan, each financing, by Internal loans, the stimulus given to internal industry in each country would promote a much freer flow of the natural export and import trade which each country had with its neighbours. Perhaps one of the most hopeful «igns for the future was the statement by the Chinese delegate that the Chinese desired to raise their standard of living. Any success in this direction is sure to react to the benefit of the rest of the world. It is certainly a far better objective than the pessimistic rubbish handed out to New Zealanders to reduce their standard of living.—Yours, etc., IVANHOE. July 11, 1933.