MR POLSON’S SUBSIDY SCHEME.

Evening Star, Issue 21819, 7 September 1934, Page 10

MR POLSON’S SUBSIDY SCHEME.

TO THE EDITOR. Sir, —Mr Poison’s scheme is based oh the belief that manufacturing industries, to increase their production, onlyj require financial assistance or indemni* ties against loss. Ido not think tin* assumption will strike manufacturers a| being sound. Mr Poison has failed ta appreciate the difference between prim* ary and secondary industries. In th* former, the producer produces as much! as he can, without regard to demand, and then puts it on the market to fetch what it will. In manufacturing in* dustries, on the contrary, the producer regulates his volume of production iol accordance with his estimate of the probable demand a few months ahead* based on the rate at which orders ar4 being received. Manufacturing industries need only) one thing to enable them to increase* their output. They need a greater demand for their goods—in other words,more potential customers or customer* with more money to spend. Wo do not need any special assistance _in financing production. There is no difficulty about getting all the finance needed for increased production, provided that we have an increased market for the goods when produced. Let Mr Poison consider how to increase the purchasing power of the public, which means an increased demand for manufactured goods, and he will then' find that increased production will automatic cally result.—l am, etc., . A. E. Mandeh (Secretary New Zealand Manufacturers' Federation). September 7.