THE WORLD OF TO-DAY

Manawatu Standard, Volume LII, Issue 72, 24 February 1932, Page 4

THE WORLD OF TO-DAY

ADDRESS BY MR H. A. SEIFERT. “The World To-day,” was the subject title of ap address delivered to the Lunch Club yesterday by Mr' Herbert A. Seifert, who grouped the features of his remarks under four headings, the monetary crisis, scientific development of the world, the Russian experiment and the League of Nations.• Mr J. A. Colquhoun was in the chair./ \ “The crisis of to-day, stated the speaker, “is due to the breakdown of the monetary exchange. While two causes attributable are war losses and overspending, I am of the opinion that they are pure fallacies for, although there was a large economic loss as the result of the war and certain areas of France were devastated, France is in a better position to-day 'than ever before. Further, there were heavy shipping losses, but so quickly has the world recuperated that there is more shipping available to-day than ever before. Deflation by America and Great Britain, particularly, is the real cause of the present slump and it is said that a return to the gold standard would cost Great Britain four to six thousand millions of pounds. Some authorities have maintained that to wipe out the war debts would rectify matters, but Britain owes £7,000,000.000 to her own people and how can Britain write off what she owes to her own quite apart from the £L,000.000,000 she owes to America. The only wav to meet the position bv deflation and to-day the £1 sterling is only worth 14s in foreign currency of the countries remaining on the gold standard. With her debit it will no doubt take Britain some time to return to parity, but she can be trusted to have taken the right course. Wo arc in for a period of deflation and it will need carmble leadership to save the country.” SCIENTIFIC DEVFff/YPMENT. “It has been maintained that economy is necessary under the present conditions, but if the practice operated in Great Britain—Now Zealand’s greatest customer—how would it affect the Dominion? Our greatest products are butter and lamb, yet if economy were introduced at Home these two articles, which can be substituted by cheaper ones by the consumers, would be marketless. It is essential that the consumption of goods should be greater which necessitates a high spending power, otherwise there will bo chaos. Twenty per cent of a nation’s population can supply its agricultural requirements, so what are the 80 per cent to do unless secondary industries can absorb them? Science in farming has advanced to such an extent that a farmer in the United States operating on a tremendous scale can produce his crop to pay him at 2s Id per bushel, whereas the New Zealand farmer is looking forward to receiving 6s per bushel. It thus behoves the Dominion to turn its attention more to its secondary indusries for it is wise to have a well balanced population of rural and industrial workers. The trouble to-day is that we are under-consuming, not over-producing. THE RUSSIAN EXPERIMENT. “The Five Year Plan in Russia lias done much towards building that country anew, The sum of £6,(XX),(XX),OOO was originally budgeted for to be spent within five years, and the huge plan can only be carried out by hard thinking and close co-operation by the people Since 1918 some of the most brilliant men of the world have controlled the destinies of Russia. There have been efforts made by other countries to break up Russia, but to-day it. is still intact and that' country possesses many advantages, although the principal defect .appears to be a lack of freedom which would not suit our temperament. LEAGUE OF NATIONS. “‘There has been considerable adverse criticism levelled at the League of Nations, but it is too early to judge it as yet. Two hundred years hence it may have attained its real strength. The whole tendency to-day is to mould everything into one and the dreain of controlling the whole world from Geneva may l>e possible. Great Britain originally contained seven kingdoms and no doubt had anyone then predicted that the day would come when it would be controlled from one Parliament they would have been laughed at. The League of Nations tends towards stopping wrong. doing by reason of public opinion, but it is only a baby in the meantime and afraid to take too strong action in case it breaks itself up. Man, however, is a warlike type of animal and, even if the world were disarmed,, the tendency is for war to be reverted to even if it were per medium oil shotguns and clubs. The task before the League is that of making war more and more remote and in this respect alone it is well worthy, of support. “What is necessary'-.for the world’s goods,” stated the speaker in conclusion, “is stability of currency and the extension of education, for man’s supreme asset is his intelligence. Every man is endeavouring to progress and, after all, the future lies in his own hands, and, in my opinion, we will go on to greater things.” A vote of thanks was extended the speaker for his interesting address which was moved by Mr S. L. Searell. Messrs P. J. Cope, of Otago, and R. W. Priest, of Palmerston North, were extended a welcome as visitors.