NO SHORT CUT TO PROSPERITY

Press, Volume LXX, Issue 21255, 29 August 1934, Page 10

NO SHORT CUT TO PROSPERITY

ECONOMIC PHILOSOPHER'S STONES ITJIE PRESS Special Service.J WELLINGTON, August 28. "Speaking generally, and on broad lines, I am still of opinion that probably most of our troubles to-day are caused by the action by the world's large financial groups in attempting to force upon debtors, both national and individual, the consequences of an abnormal and arbitrary increase in money values, beyond any possibility of an adjustment of debt, and quite beyond human endurance to sustain," said Mr H. D. Acland in his presidential address at the annual meeting of the New Zealand Sheep Owners' and Farmers' Federation this evening. "I stated last year that this action would necessitate adjustment. Adjustments have, of necessity, had to be made, either directly or indirectly, and the lower interest rates being earned by money to-day, as compared with those of a few years ago, is some indication of the effect on industry which may be expected to follow the attempts to maintain face values of securities at an unjustifiably high level. If face values have not been written down, then interest earning power has been reduced to he extent necessary to enable the particular security to continue in existence. "Many alleged philosopher's stones have been discovered during recent years bv various economic alchemists, the particular stone in each case being clai' od as the only one capable of restoring economic equilibrium with no appreciable sacrifice to any one section of humanity, but when tried in the crucible of practical application, they appear so far to show no marked advance in value of those of the middle ages. In other words, there is no short cut back to prosperity which will avoid a measure of sacrifice."