CRITICAL TIMES

Evening Post, Volume CXX, Issue 105, 30 October 1935, Page 9

CRITICAL TIMES

WOKMMVIDE PBOBLEMS"

CLARION CALL FOR THOUGHT

"Never before in the history of the would has there been a time more necessary than the present for chambers of commerce, public men, and students of national and international affairs to get together and discuss the serious problems that now confront all countries and call for solution," declared Mr. A. H. Allen (Dunedin) in his presidential address to the annual conference of the Associated Chambers of Commerce which is being held in Napier. These problems, he went on to say,. related-to such questions as money, tariffs, production, markets, purchasing power, consumption, price levels, capital, wages, unemployment, forms and functions of government, and the world's peace. "In this disturbed and critical period there are unstable forces, many of them, disintegrating and challenging old political and economic forms or systems. These forms or systems are passing through, the furnace of severe criticism, rand drastic and radical changes are being demanded. Even in this favoured young country there are voices raised, making it clear that we are not free from questioning and disturbing elements. As in other lands, so in. New Zealand there are agitators, disturbers of-the peace, ■■ promoters of class war/and leaders advocating such .extreme revolutionary ideas and action as would, if not checked, absolutely destroy the political, economic, and social structures established in this and other nations. There are other leaders of thought and influence who recognise that. real progress is slowly but surely achieved by the forces of evolution—political evolution and social evolution. Humanity is responsive to evolutionary growth. "This world in which we live is full of complex, economic, and social problems, wise solutions of which are being eagerly sought. In New Zealand as in other countries there is, on the part of a great number of people, a deplorable apathy and lack of intelligent understanding concerning great national and international affairs —the things that really matter. "It is also true to say that many well-meaning and thoughtful people are groping for light amid the mental mist of,divergent views or vague ideas presented for the solution of economic and social problems. These problems call for the most careful consideration, dispassionate analysis, and the necessary ability to assess the effectiveness of the various remedies or policies formulated for their solution. "It is well to bear in mind that in disturbed' and critical periods in a nation's history such as obtains at present in all countries, there are illinformed, credulous, and irresponsible people'who foolishly swallow upon trust empirical remedies and 'make believe 1: reforms to cure political or social'.y ills'? "f_ FOLLY OF COMPLACENCY. The encouraging signs of improvement in New Zealand's economic conditions had led many to conclude that the tide had turned and that the country was now safe and secure on the waves of prosperity, Mr. Allen went on to say. Gratifying as this evidence of New Zealand's economic recovery was, he was of the'opinion that it would be folly to regard our economic position with complacency, because- of the serious difficulties yet to be overcome and of the grave international problems unsolved, especially those dealing with the effects of fiscal and monetary policies. "I recognise that our present national Administration has conceived and is carrying out a domestic policy or programme -which it hopes and believes will promote financial stability, industrial strength, and economic prosperity. In this connection it is relevant to state that our .chambers of commerce have deemed it their duty at various times to adversely criticise certain features of that policy, although in all their actions the chambers of commerce have endeavoured always to be as constructive and to be as helpful as possible." INTERNATIONAL CO-OPERATION. Touching upon the international aspect of: the situation, Mr. Allen said: "In dealing with the domestic policy or programme of New Zealand, or that of any other country, I desire to strongly assert that no such policy by itself can assure any such country entire freedom from the effects of the depression and a complete return of • confidence and real national progress. "I agree with those who declare that unless adequate' account is taken of the international aspect and of the urgent need of international co-opera-tion in the solving of problems such as are involved in the marketing and monetary systems, much of the work done on a national basis, and making for national economic isolation, will ultimately tend to.defeat itself. What is urgently wanted today is a wider outlook and a policy of national action supplemented by a certain amourit of international action. Since the Great War there has been a considerable decline in international trading, which can be attributed largely to artificial obstacles placed in its way—such as high tariff or trade barriers, quotas, subsidies, and. exchange restrictions. "The; consequent great changes that liave taken place in the economic relations between nations have been in a great measure brought about by the pol^ci es of extreme economic nationalism pursued by many countries during recent years. The world as a whole is suffering as a result of such problems—there is, for instance, no stability in its currencies and exchanges. Only by concerted action on the part of nations can such stability be established. Economic nationalism or economic isolationism seems to spring from a determination to suffer hardship rather than do business with anyone else. It has developed throughout the world an unbalanced condition in trade which has greatly contributed to the economic instability we have suffered from in recent years."