Control of Production

Dominion, Volume 26, Issue 97, 18 January 1933, Page 11

Control of Production

Sir,—Was not the itch to get rich quickly the start of the slump? When producers were getting 2/- per pound for an article, they thought if they doubled their output they would still get the same price. The logical result of the increase is that the article is now worth 6}d. per pound as is the case with butterfat. Instead of going back on the road they came and producing less, they are endeavouring to make everything conform to the latter figure. They blame reparations, armaments, hoarding, etc., for the trouble. These things existed in the good times of 1925, and while their removal would be an immense benefit they are not the bedrock cause of the 35,000,000 unemployed to-day, with an annual loss of £4,000,000,000 inwages. The primary producers have put up no fight against the slump. They are on the retreat. They feed and clothe the world, and they are its galley slaves. They accept any price and treatment that is slung at them where they should and could be the controlling factor in fixing such price and treatment. As an ordinary citizen I have endeavoured for the last two years to put forth a definite fighting plan of controlled production and currency expansion through an international bank (you recently published particulars of the latter). The proposal practically means a league of primary-product-exporting nations.. If all these nations were to combine in refusing to expojt more than 70 per cent, of thels produce this season, and in refusing to allow more than 60 to 70 per cent, of their normal crops (wheat, meat, wool, etc.) to be grown next season, an immediate rise in price far greater than the loss in quantity would result. Such a rise would make production profitable-—■ the one thing that will restore confidence.A belated realisation of the soundness of such a policy is indicated by the proposal to now internationally, control wheat, oil, rubber, etc., and if this is successful, I believe the international bank would quickly follow. The problem ,is not so much to bring back the 1914 conditions as to raise the whole standard of living to a level made possible by modern production if it could be used. Until this is solved the man who for the next few years can make one blade of grass grow where two are growing now will be the world’s commercial saviour.—l am, etc., H. LATHAM. Greenmeadows, January 14.