PRODUCTION AND WEALTH

Evening Star, Issue 25674, 24 December 1945, Page 6

PRODUCTION AND WEALTH

TO THE EDITOR.

. Sir, —In reply to “ Student,” there is a vast difference between a person’s lawful needs and his wants. To illustrate with a Christmas story. A well-known guzzler declined, until he transacted some business, to take up a bet that he could drink a -gallon of beer without drawing breath. On returning he accepted, and won the bet. When asked why he did not take it up at once, he said he went to the other pub and found he could drink it, so he hastened back to win the bet, which more than paid for both gallons of beer. Maybe another Christmas story may, with that one, help to illustrate my point better. A wellknown gorger, after winning a bet that he could cat 12 pies at a meal, said, “ Do not tell Jean, or she’ll no give me my dinner when I go home.” Jt was for good reasons, therefore, that Great Britain rationed beer and food during the war, so that the “ needs ” of all should riot be lessened by the greed of the fewer selfish people. Your correspondent says local production and coiisumptiori' are not equated to-day to satisfy our needs until Great Britain’s industries are restored, to enable her to export goods. To obtain dollar security to supply herself witli the primary produce she needs,, we must do with a little less consumption of - these goods to enable her to. have more of what she can pay for out of sterling. To help Britain to get more sterling to re-establish her industries Mr Nash is paying off debts to Britain as they fall due, instead of renewing loans. “ Student ” moans over taxation being so high. Much of that taxation was imposed to save “ Student’s ” life and New Zealand from being invaded. The debt system, with its overdrafts, is an inheritance of Capitalism. Yet in spite of.taxation, the balance sheets of companies show that, after putting away vast sums to reserves, the dividends of most companies after paying taxation, exceed their pre-war dividends, 'which explains why Mr Dawson, at the Chamber of Commerce meeting, exulted in the fact that'the share market was buoyant. In spite of war taxation and war loans,-which must continue until every soldier lias been rehabilitated. the deposits in trading banks, post office snvings banks, trustee savings banks, National Security loans, and in insurance companies show that after the needs of the people have been met the savings of the people are ever increasing, which will enable them to consume more goods when enough consumable goods are produced, which will gradually increase on- an everascending scale when man power in all oversea dominions and Great : Britain is rehabilitated. Then consumption can be universally - made to equate production and vice versa, but not until then. —T am, etc., J. E. MacManus. December 24.