FINANCE, A SERVANT

Evening Star, Issue 21092, 3 May 1932, Page 7

FINANCE, A SERVANT

HOW IT BECAME MASTER THE ROAD TO RESTORATION [Pe* United Peess Association.] AUCKLAND, May a. That the world'Will not emerge from the slump except through carefully planned co-operation between peoples and nations was the view expressed by Mr Sydney W. Pascal!, of London, president of Rotary International, in an address before the Auckland Rotary Club. One of the chief troubles of the world, said Mr Pascall, was that its financial organisation was out of correlation with its commercial and industrial organisation. Last year doubt was thrown upon tho national credit of Britain, with the result tlnit Britain was forced off the gold standard. It was an undoubted fact that the international gold standard had broken doij’ii and another international standard must replace it. At the same time it would have to be a standard which would not operate so unfairly as had the standard of the past ten eyars. Finance ought to be tho servant, not the master, of industry, and instead of prices tumbling down as they had done in the present crisis values should be stabilised through international co-operation. A more thorough understanding of economics was needed in the business world, Mr Pascall urged. “Is our vision any clearer than it used to be? ” he asked. “Do we see what is wrong with our commercial civilisation ? Do we study economics as well as our businesses? We, as business men, owe it to ourselves, to the community, and to our workpeople to give a sensible lead by which we may, avoid these recurring cycles of depression, and in particular this grave slump of to-day. This is not an ordinary depression which the world can emerge from by a normal turn of the wheel. We must see that adequate steps are taken to cure it. Wo look round and see a world which is poor because it is too rich, which apparently has too much wheat, cotton, wool, sugar, rubber, and oil, and too many factories to produce goods. In some parts of the world they are burning and dumping wheat in the sea and in other ways trying to restrict production, while other parts of the world are starving for want of these things. At the same time nations are piling up tariffs to prevent those countries which have goods to sell to those that need them. It is a mad world.” Mr Pascall said he was convinced that free discussion of the problems relating to economics and finance, and even politics, was a,-legitimate function of the Rotary movement. It was the essence of the Rotary spirit to discuss such controversial matters. Members might disagree fundamentally and still remain friends. Great ultimate good would come of such debates.

A new concept was needed in trade, said Mr Pascal!. It had to be realised that trade and commerce were not matters of personal concern, and advantage, that no nation could prosper in the long run out of another’s ruin, and that any attempt to do so was nothing hut the prelude to its own ruin. It used to be said: “ Who takes up the sword perishes by the sword.” and it could be said with equal truthfulness: "Who acts selfishly perishes from selfishness.” Only by personal, national, and international co-operation could the world arise out of its present impasse. The speaker expressed the hope that New Zealand would employ its tariffs strictly for the purpose of promoting production and the exchange of wealth, and not, as was too often the case, for the purpose of restricting trade.