Economic Conditions

Manawatu Times, Volume LVI, Issue 5618, 6 April 1931, Page 10

Economic Conditions

PROF. BELSHAW’S VIEWS “HELP THE INDUSTRIES” Lines along which the Government should act in order to bring about an improvement in the present economic conditions were suggested by Professor H. Belshaw, of the Auckland University College, when addressing members of the Auckland Creditmen’s Club. This and previous Governments, he said, had not been responsible for the depression, but they had aggravated the causes which produced it. There had been much wasteful usage of public money, said Professor Beishaw, and he instanced the uneconomic construction of railways. “The trend of debt and taxation by the Government and local bodies has been upward at a rate of increase greater than is justified by our national wealth,” he said, ‘‘and the position will be made worse, if, as I fear, prices fall. This does not mean that borrowing should cease, but it should be more closely scrutinised, particularly that of local bodies. Borrowing to tide over temporary situations is dangerous.” The Government should borrow abroad instead of within the country, he added. This would enable the commercial banks to lower their overdraft and other charges and would ease competition on the local market. Further, the banks should get rid of their gold supplies and thus help to lower interestcharges. Public Works Plan Needed

It was a mistake, he said, to pay the full award rates on unemployment relief works. One result of this had been to draw labour from agriculture and other productive work into unproductive channels. The Public Works, as a Department which was absorbing the largest numbers of unemployed men, should institute a system of longrange planning and not make its measures those of temporary emergency. The absense of such planning, he said, was one of the causes of the present suffering. In his opinion postal charges should be generally lowered, not necessarily to what they had been before the last increase, but certainly they should be less than they were now. In the case of advertising matter he said the charges should be lower than they had been even previously. ‘‘While I am in accord with the Government's policy of economy in the public services, I yet consider that these economies should be carried-out very carefully,” said the professor. ‘‘lt is just a question of whether hurried measures will impair efficiency in those Departments, and thus create a situation worse than the one which those measures were instituted to overcome. A Bachelor Tax? Professor Belshaw was in accord with the Government’s policy with regard to wages and salaries. “Under the circumstances its attitude is appropriate,” he said, “but, at the same time, some graduations should also have been introduced. On the other hand, to make any fall effective, a fall in wages should not be confined to the Government Departments, but should be distributed throughout the industry. At 10 per cent ‘cut,’ as suggested, will not necessarily be followed by a fall of 10 per cent in the-cost of living. The time is ripe for same sort of super-income tax on bachelors, ' or rather, more correctly, those without dependents. It would be an equitable form of tax and one that could not easily be passed on to the public.” Finally, he said that such taxation as was neccsary should be put in the way that was the least burdensome to industry and not- in a way wdiicli aroused least complaint from the people. The latter course was common in countries with democratic government, and, to some extent, explained the Customs fluctuation in New' Zealand. A statesmanlike policy at a time like this would do much to restore public confidence, and, in so doing, would have an indirect effect as great as that of a policy framed for material ends.