ECONOMICS

Evening Post, Volume XCV, Issue 140, 13 June 1918, Page 3

ECONOMICS

SIGNIFICANCE FOR BUSINESS MEN

An interesting address—especially in view of the far-reaching changes brought/ about by the great war—on " Tim Scope and Method of Economics and its Significance for the Business Man," was delivered at the Accountants' Chambers, Johnston-street, last evening, by Mr B. E. Murphy, LL.B., 8.C0m.,F.R.E.S Theje was a good attendance of accountants, students of. accountancy, and of business men. Mr. E. W. Hunt prosided.

In the present day, and particularl} with the urgent problems that the war had forced upon our notice, remarked Mr. Murphy, there .was a need for a more intelligent and widespread knowledge of economic problems if democracy were even to survive in New Zealand. We lived under a system by which tht, rulers of the country were periodically selected by vote; and those rulers had to deal not only with political matters, but with riiany urgent economic phenomena that sprang from our system 'of industrial legislation, and our land laws, and our general policy of State interference for the good of the community; for in New Zealand, it might be said, the prevalent belief was in the possibility of Socialistic reform by legislation. Under these circumstances, unless the electors took an intelligent interest in economic problems, it was hardly to be expected that these problems would, stand' much chance of a satisfactory solution by our leaders. And from this point of view, a diffused knowledge of popular, but sound, economic truths was greatly to be desired.

To the business man a knowledge of the economics of exchange in particular was of great importance, and more particularly a knowledge of questions affecting the currency. The present war, continued Mr. Murphy, ; like most great wars of recent decades, j had been attended by monetary and finanI cial complications on a scale previously | unparalleled, and we had not escaped their influence in <New Zealand. And while, so. far any dieorganisation in our currency and normal financial arrangements was not serious, a vigilant and enlightened public opinion was essential if the country were to be saved from being made a laboratory for tho experiment, of : currency and financial quacks. It was l particularly to be desired that the businessl man and the citizen *nhonld understand clearly such questions as the effect j of paper, issues on prices, the effect of government notations on the currency and on prices, and the best methods of resuming normal economic life after the war. For these reasons a knowledge of economic theory on the part of the community in general, and the business man i in particular, was more than ever urgent.

At the same time it must be remembsred that economics was not a creed, nor were its solutions find. In the problems of practical life, a community had to consider more than the merely material aspect. For instance, the British Empire would have ■to consider whether it would be worth while to submit tn some loss of revenue in order.to knit the various portions of the Empire into a closer bond of commercial union. It might also he necessary to consider whether some restrictions on the". user 1 and control of shipping, and especially on the operations of international shipping rings, would not be. necessary in the public safety. These and many other such questions, ■ all of the deepest practical importance, could not be solved by the use of economics- alone. <•

At the same tfme,, concluded th 6 speaker, chere were many questions in which a .sound • view of economic facts would lie decisive. Economics was preeminently a pragmatic science, that was, a, sciencfc which criticised, which laid down rules, and which sought ever to enable the community to arrive at a state of society in which urgent social inequalities would become less pressing, and in which every intelligent citizen would feel more and more called on to exercise his influence and thought in the direction of secnving such social arrangements as would make for national health and betterment and tend to uplift society. \ The lecturer answered a number of questions which were asked, and was accorded a hearty vote of thanks.