WANTED-FACTS

Evening Post, Volume CXIII, Issue 17, 21 January 1927, Page 8

WANTED-FACTS

THE ECONOMIC RIDDLE

CONTROVERSY GIVES NO

LIGHT

FACT-FINDING BODY -NEEDED

(By "Spectator.")

One of -the great lacks of the modern, economic world is fact-finding machinery. Most economic arguments are at present conducted without accepted concrete facts.

. This remark applies to the tariff issue (now being investigated by a fact-seeking departmental commission,' but in private), to the cognate question raised yesterday by the sawmilling deputation, and to all related subjects. How best to find the facts was one of the chief matters argued between the deputation and the Ministers.

The protection problem was recently referred by the Auckland Chamber of Commerce to a committee. According to a telegram from Auckland the committee investigation has had the usual result: —a convenient formula. "The committee resolved that as the prosperity of New Zealand depends mainly upon an increased primary production, any change in the Customs tariff which would tend to increase the cost of production should be avoided." But are there any changes of' tariff that would not increase cost of production?Protectionists say "yes," free-traders say "no"; and so the dispute reaches a stage at which the rormula does hot' decide. For instance, it has been stated—and'the authority of the Australian Tariff Board is said, to be hehind the statement—that even the farmer's agricultural implements are cheaper in Australia—where there is a highly protected Australian industry—than in New Zealand. Again, it is affiffirmed that the Australian tariff has not increased the price of textiles, i

PUBLIC EDUCATION IS VTTAI,.

A newspaper, controversy has the advantage of publicity, but cannot fcope to carry the authority of' sworn evidence. ' On the other hand, the sworn evidence of people who really know may; not be obtainable except in confidence.' And confidential information falls short, because the informing of the public is at least as important as the informing of Ministers.

For weeks recently a controversy was carried on in the correspondence columns of the Australian Press between, protectionists and free-trade farmers. Few, if any, new facts seem to have emerged.v Formerly credit .was given to an allegation that Australia's protected manufacturers of wire-netting sell in New Zealand at cheaper rates than they sell in Australia. But when, this statement was repeated in a letter by Mr. J. P. Hall (general secretary of "the Country Progressive Party of Australia) the secretary of the Australian Industries Protection League" (Mr." J. Hume Cook) replied: "Mr. Hall states that Australian manufacturers are selling wire netting in New Zealand at £3 per ton lower than in Aus- ■ tralia. Inquiry from one of the largest manufacturers has brought an emphatic contradiction of Mr. Hall's statement. It is possible that, a single .firm may have sold *dn the. way .described, bill; it" is not .the practice of Australian manufacturers generally. Possibly, now that these misstatements have been pointed out to Mr. Hall, he will admit his er-7 ror, and withdraw the accusations he has made against Mr. Hill and the Commonwealth Government." As nobody, in a controversy of this sort, ever admits his error, Mr. Hume Cook seems: to' be merely expressing a pious hopel:

BEINCIPI.ES VANISH.

The controversy, having failed to throw up new facts, could hardly be expected to build anything. substantial on mere principles or Cobdenite formulae, for all principle—so far as freetrade is concerned—has vanished from the case of Australian farmers who draw an export bounty on their own butter and who insist «on an exclusive duty on New Zealand butter. Nor does the farming fraternity in NewZealand, with its wheat and flour duties, seem to be in any better shape, so far as free-trade principles are concerned. ■■■■■..■ .'•'.■■ . . . ;.

But though the issue in Australia is but thinly tinged with principle, it is shot through and ■ through with party, politics. The Country Progressive Party mentioned above is a break-away from the-Country Party that co-operates with the protectionist National Party in. maintaining the composite Bruce-Page Federal Government. When Dr. Page, as Leader of the Country Party, joined forces with Mr. Bruce in a high' protection policy, he was bound, to alienate some of his Country Party supporters, and the seclusion of the so-called freetrade Country section is the result, but what votes it.can swing will only be determinable by a General Election. This Australian Country Party split is of 'interest to New Zealand because there are not lacking in the Keform Party signs of cleavage on the tariff issue. The real force of rural discontent with protection is hard to assess when it expresses itself through political channels, unless opportunity for a General Election on the clear-cut issue should present itself.

A Country Party Conference fixed in! Australia for February is likely to h> of importance as affecting the taritt problem from the political, angle.

FACTIONS FAIL TO FIND FACTS,

Meanwhile, the question of how to create satisfactory fact-finding machinery remains. The Acting-Prime Minister (the Hon. W. Downie, Stewart) fears 1 that a commission, composed of opposing interests will speak with two op more voices.

On the other hand, the voice of a more "homogeneous" commission might be kno^wn. beforehand. A departmental committee is ..not free from the suspicion that it may subconsciously; work from the top downwards instead of from the bottom upwards. Expert skill, in judicial functioning, is both good and bad. So long as vital economic fr.: r:o not ascertainable except in confidence, a public inquiry will be not deep enough in its operirtion,' and a private inquiry not wide enough in its educational results:'

In business matters some fact-finding body is heeded, with the prestige of the Judicial Bench. An Economic Tribunal with the standing of, the Arbitration Court, but commissioned to explain rather than to command, might be successful in focusing the intelligent discussion of vital questions now clouded m ignorance. The light it could thrown might reach farther than any mere adjudication on wages and hours.