FOR BETTER OR WORSE

Evening Post, Volume CXIV, Issue 149, 21 December 1932, Page 8

FOR BETTER OR WORSE

,','vA few days ago Mr. W. J. poison, M.P., : president of the. Farmers' Union, was reported as "stating that "it might" be heresy to say so,' but he had 'doubts • whether the 'legislation passed during the past year or so, legislation which interfered'with the sanctity of contract, had really helped the Dominion to get, put of the tangle." Where Mr. ' Poison has doubts Mr. Harman Reeves, .chairman of the Dunedin Stook, Exchange, is certain. . ,• ; I think it is a pity legislation of, any sort has been introduced to interfere with sanctaty of, contract. Left alone the differences' between the mortgagee and the mortgagor would have' righted themselves. An uneasiness and want of confidence has become so manifest recently that it permeates every business, and until the Parliament, of this country stops tinkering with ■ legislation allegedly designed to assist'the country we will never get out of our troubles. The business of the Stock Exchange is to aid and facilitate investment, and confidence, is the keynote of investment. Parliament, in trying to ■make things' better, has made them worse by shaking confidence." The superficial thinker may belittle the importance of investment, and speak of it as the means of keeping people in comfortable security. But. it-must be recognised that investment is the foundation of industrial, enterprise.; This was stressed by Professor Gregory and the group of London; economists whose views we, quoted recently., They affirmed their belief that one of the main difficulties of the world to-day is, a, deficiency of investments^ a depression of the industries- malting for capital extension, etc., rather' than of the industries making directly for consumption. Hence we regard a revival of investment aa peculiarly desirable." :. '■ '.';•-. ' v.;-'., ■•■ ■ ' '.", .•'"' Even the man in the street who does riot argue in economic terms is supporting the same thing when he says that what we want is to establish new industries or to make use of resources now undeveloped. This cannot be done without funds provided by the investor. What should be understood is that the investor cannot be forced. He must be persuaded. The more he is threatened the more retiring he becomes. We should begin to make progress if we changed our tactics and, instead of acting as if the man with funds invested, or waiting investment were the enemy of society, regarded him as a valued and helpful friend whose co-operation should be sought. ''■:> .■