LIMITING SUPPLY

Evening Post, Volume CXVI, Issue 23, 27 July 1933, Page 11

LIMITING SUPPLY

A "POLICY OF DESPAIR"

MR. BRUCE'S STATEMENT

(From "The Post's" Representative.) LONDON, Juno 23.

At the plenary session of the Economic Commission of tho World Conference Mr. S. M. Bruce explained the Australian view, and referred to the matter of restricted exports from the

Dominions,

"It is now agreed," he said, "that tho main object of this Conferenco is to try io bring about an increase in the level of commodity prices. In Australia we feel that the great objective should be the increasing of the world's purchasing power and that wo should avoid as far as possible, a remedy which involves the restriction of tho world's production. Our aim should be tho restoration of confidence, and we should try to get rid of various restrictions.

"The restriction of production seems to us a terrible policy to accept. In Australia we have great obligations to tho world to develop a great continent to bring about the utilisation of our resources for the benefit of mankind, and wo have our more immediate obligations in respect of our external debt. Under the restriction of production wo should fail in our first duty and find it difficult to carry out our obligations. It seems an attitude of almost intolerable pessimism to take tho view that the world's evils can only bo remedied by restriction of production. People can hardly bo brought to accept the idea that the best tho World Conference can do is to bring about a restriction of production. "Wo recognise that in the crisis the •world is in today there may bo some commodity where we have to face the necessity as a temporary remedy of some form, of control of production and restriction of marketing. We are preSared to consider on its merits any inIvidual commodity and not be obsessed by tho general principles that govern our policy." In the «ase of primary products Mr. Bruce said they were dealing mostly with individual producers, who could not close down as a great business could, but had to go on producing for a

liyelihoo.d. After exaniining every individual commodity in its circumstances they should apply very rigidly the test of practicability as to what action should be taken. PREPARED TO CO-OPERATE. The experience- of tho past, Mr. Bruce went on, dictated that they should move with tho greatest caution. Tho story of the last ten years of attempts at restriction of production had given many examples of disorganisation and loss. The practicability of every schemo must bo examined in tho most minute detail. If the scheme could successfully pass through the tests put forward by Sir Philip Cunliffe-Lister there was a fair chance of its practicability being established. And if any scheme was going to work it must involve opportunities in the markets of Eilrope for the great exporting countries. It had been, suggested many times that the trouble was with the primary industries of overseas countries, and that this had disorganised the markets of the World. That would not bear examination; and he quoted figures showing that there had boeu increasing confinement of the market by the everrising tide of protection for European agriculture. ■

"We must get rid of some of our intensely nationalist ideas," Mr. Bruce said in conclusion, "and try to cooperate in overcoming some of the tremendous difficulties that now fnco us. While Australia would never consent to such a policy of despair as restriction of production, we are prepared to co-operate, in every way possible in solving tire world's problems."

"In theory, restriction of production is a policy of despair, comments the "Daily Telegraph," "especially with wheat, while millions of people are going short. But it is cruel necessity which dictates the policy, and success would justify the deed. An agreed wheat scheme would almost compel the acceptance of other schemes dealing with industries in which over-produc-tion is oven more susceptible of conclusive demonstration."