ECONOMIC CRISIS

Gisborne Times, Volume LXXII, Issue 11451, 27 February 1931, Page 2

ECONOMIC CRISIS

SURVEY .BY BRITISH PREMIER

A WORLD-WIDE PROBLEM

(British Official Wireless.' RUGBY, Feb. 24. The Prime Alinister, who viste.d the heavy section of the British Industries Fair at Birmingham yesterday, was tliq guest of tho Birmingham Chamber of Commerce at a dinner last night. He said he was much impressed by the optimstic note prevailing among exhibitors. Referring to the general outlook lie said the present problem was not one of production, which was more efficient than. ever; before. There. was no problem in consumption. People were prepared to con sumo more than they ever consumed before. AVhere the fault lay was that between production . and consumption something camo i», a 11( l prices got dislocated. For somo reason or other primary producers could not get prices that enabled factories to be busy, and until they laid their-heads, together and discovered how production ami consumption could he related to each other moro directly, those great factors would continue to disturb the markets of the world. That was a world problem, hup within that world problem there was a national problem.

Our taxation was heavy; deplorably heavy. Half of it was to. keep our nation’s word as its bond. The other half was subject to public opinion, which was intelligent enough to approve a policy. The House of Commons-, with the consent of the Government, had set up a .committee to roview public expenditure. He hoped the committee would bo expeditious in its work. The Government was so convinced of the importance of expenditure that there would be no time lost in getting that committee into working operation. Abuses, must be pruned out. Cuttings must be not by rule of thumb; they must be suitable in a moral’ sense as well as productive of economic results.

In economy they had to remember that they were faced with a doubleedged problem. Economy did not merely mean saving, it meant expenditure of thq right kind.. Expenditure and wise saving were the two aspects of economy, becouse in times, like theso .the country ought-, to bo prepared for an expansion of its resources and increase in efficiency.