ORGANISE FOR PROSPERITY.

Hawera Star, Volume XLV, 15 October 1925, Page 5

ORGANISE FOR PROSPERITY.

AN ECONOMIST’S ADVICE. NO WORLD DEPRESSION. BY CABLE—PBESS ASSOCIATION—COPYBIGHT. London, Oct. i 4. Mr J. M. Keynes, editor of the Economic Journal, addressing the Manchester branch of the Federation of British Industries, demanded that the Government should begin to organise for prosperity. It was no longer true that there was world depression. The United States had never had such uninterrupted prosperity. “It is not true that Britain’s customers, with the exception of China, are abnormally impoverished,” said Mr Keynes. “The home trade is good on the whole, and the foundations of prosperity do exist. The reason' for unemployment is that the Bank of Englaifd seized the opportunity to restrict credit with a view to lowering the prices in the interests of the dollar exchange. Our manufacturing costs, measured in gold, are higher than .those of our chief industrial com. petitors. It is purely a matter of monetary maladjustment. “There is a school of sensible economists, including Mr. McKenna and Sir Alfred Mond, which believes that prosperity is more important than the dollar exchange. .It is pledged to stimulate new capital and encourage a business policy. The early stages of this will probably lead to loss of gold, but the risk must be taken to prevent the suicide policy winning.”