ORGANISE FOR PROSPERITY.

New Zealand Herald, Volume LXII, Issue 19149, 15 October 1925, Page 12

ORGANISE FOR PROSPERITY.

TIME RIPE IN BRITAIN, j GOVERNMENT CRITICISED, | ECONOMIST URGES ACTION. By Telegraph—Press Association— -Copyright. (Received 5.5 p.m.) A. and N.Z. LONDON". Oct. 14. Mr. J. ML Keynes, editor of the Economic Journal, in addressing the Manchester branch of the Federation of British Industries, demanded that the Government should begin to organise for prosperity. He said it was no longer true that there was world depression. The United States had never had such unmitigated prosperity as at present. It was not true that Britain's customers, with the exception of China, were abnormally impoverished. Home trade was good on the whole and the foundations of prosperity did exist. The reason for the existing unemployment was that the Bank of England had seized the opportunity of restricting credit with a view to lowering prices in the interest of dollar exchange. Britain's manufacturing costs, measured in gold, were higher than those of her chief industrial competitors. It was purely a matter of monetary maladjustment. There was a school of sensible economists, including Mr. Reginald M.cKenna and Sir Alfred Mond, the members of which believed prosperity to be more important than.tlio dollar exchange. Tit at school was pledged to stimulate new capital and to encourage business, This policy, in its early, stages, would | probably lead to loss in gold, but the risk must be taken to prevent the suicide policy from winning.