DISASTROUS EXPEDIENT

Evening Post, Volume CXIV, Issue 122, 19 November 1932, Page 14

DISASTROUS EXPEDIENT

"LET US FACE THE ISSUES"

MR. J. P. LUKE'S COMMENT

Tho facing of the issues squarely instead of resorting to measures that defy and deny the results of the operations of basic laws was the note struck by Mr. J. Pearce Luke, in giving his personal views in a statement to "The Post" to-day. Mr. Luko said that to attempt to postpone the inevitable day of economic judgment by the easy but disastrous expedient" of penalising 75 per cent of the community was neither honest nor statesmanlike.

"The renewed activity of the. advocates for the exchange rate to bo pegged indicates a definite and 'deliberate disregard of economic facts and tho laws of cause and effect.

"New Zealand has suffered in the past from legislation and enactments which have been designed to benefit one section of this community to the disadvantage of tho others. There is a well defined' axiom that 'the whole is -greater than the part.' It cannot even be contended, much, less proved, that the difficulties of one section are greater than the other in these times of readjustment.

No one will deny that the troubles of the farmer are real and distressing, but they are not singular in this' respect. Inevitably the attempt to mitigate the distress of one section has a repercussive effect on all other sections, and the day of reckoning dawns as inexorably as the rotation of the seasons.

"Is it not time that we faced the issues and determined that actions of expediency will only stave off the necessary action imposed by the workings of basic laws? Our troubles will not be cured by resort to measures that deliberately defy and deny the results of the operations of these laws.

"For years we have increased our costs in every direction. Extreme ideas regarding remunerations of all descriptions have prevailed with the result that costs have piled up and wo are faced with, the spectacle of the farmer working without reward and his backers in distress. Until we admit that we have in the past raised our standard of comfort above that which we could afford, we shall not remove the- cause of our troubles.

| 'The fallacy that we can dictate the prices which shall be paid for our commodities is widely held, to-day in spite of the more than evident signs of collapse of the former high prices. Let us stand up to the pressure which we have generated ourselves and ease that pressure by exploring every avenue which will lead to lowering of costs. We have never faced this issue squarely and the hour of reckoning is at hand. .

"To attempt to postpone the inevitable -by the easy but none the less disastrous expedient of penalising 75 per cent, of the community for the doubtful benefit of 25 per cent, is neither honest,nor statesmanlike. "Those wlo advocate the pegging of the exchange iate at 25 per cent, know that they'must, with all their fellows, meet' the' day' of economic judgment. To resort to palliatives is certainly neither courageous nor inspiring."