THE MONETARY COMMITTEE

Press, Volume LXX, Issue 21148, 26 April 1934, Page 12

THE MONETARY COMMITTEE

AN ECONOMIST GIVES EVIDENCE | ECONOMIC NATIONALISM (PKKS3 iSSOCUTIOK TELJOSAM.) WELLINGTON, April 24. In evidence before the Parliamentary Monetary Committee, Mr D. O. Williams, economist at the Massey Agricultural College, Palmerston North, said that formerly the prosperity of the country had been based an economic internationalism. Until the last two or three years there had never been any question of the limitation of markets. Since the war economic nationalism bad developed. International trade was to a large extent at a discount, ind development of economic nationalism might prove more lethal to standards of life than blockades of war. Mr Williams added that he was care- I t'ul not to be dogmatic, and most j emphatically added a rider to the . '.'ffeet that, "if the world were wise, it might convert economic nationalism ] into a weapon of well-being. But the dangers were there and it was unwise .o ignore their. By isolating ourselves more we mignt get security, but it would; be of little value if we got that security on a bread and butter diet. "Reversal of Policy" The development of economic selfsufficiency represented a substantial reversal of nineteenth century policy and was likely to be tenacious. The farming policy of England was likely to see out the generation of farmers who had called it into being. If the world were heading that way, then ■' New Zealand would have to lace the ; problems of the influence of that ; Johey on herself. One of Ihcse was a possible limitation on New Zealand's jelling overseas an expanding volume sf primary products. We might, before long, have to face i limit on the amount of products we nould export. If so, it was inadvisable to produce surpluses which were unsaleable, said Mr Williams-. It would be better to use capital and labour on the things which we now imported. Representations that the Government adopt a decimal system coinage, cither in conjunction with the present monetary system or as a necessary part of any new currency system that might be recommended, have been made to the Parliamentary Monetary Committee by a number of representative persons. It was stated that it was recognised that the committee was primarily concerned with broader currency schemes, and that the coinage and bank note structures were merely incidental; but it considered that an investigation into the whole question would not be complete without an examination of the decimal system, which, from the sta dpoint of world usage and experience, was generally regarded as the most efficient basis of ' all coinages. Labour Member's J'lan A monetary policy designed to have ' a major effect on the Dominion's de- j velopment was outlined before the ! committee to-day by Mr Walter Nash ! M.P., who said that the objective of a ' monetary policy for New Zealand should lie to encourage maximum exploitation and utilisation of the country s resources. The committee, which ha.; been taking evidence on monetary matters lor some time, concluded its public •sntings (in Tuesday afternoon, with submissions f.. yri Mr w _ D Lvf: Ov (.isoome. ( Mr Ly.-nai- made .sugi;e.-tions tor u c ' l "' r of produce on the Home market, contending that if the ■■'leat I-reducers' Hoard were doin» if; d:uy the prices o/ meat on the Eng-!.'-h mark.,;, could be cut down bv aO per cent, and the return to the Now i inn r-roduccr eoi,ld be increased by 100 per cent. The committee will consider all the suomissjons put to it. and will report to tiie tiovcrnmer.t in due course.