ECONOMIC RESEARCH.

New Zealand Herald, Volume LXIV, Issue 19658, 9 June 1927, Page 14

ECONOMIC RESEARCH.

AUCKLAND SOCIETY FORMED. WIDE SCOPE FOR STUDY. LINKING PRACTICE AND THEORY. Having as one of its objects the carrying out of economic research, an Auckland branch of the Australian and New Zealand Economic Society was formed at a largely-attended meeting in the University College building. Mr. A. G. Lunn, president of the Auckland Chamber of Commerce, presided. In outlining the reasons for formation of the branch, Mr. Lunn said it was felt great assistance could be given in carrying out research work connected with the many problems facing the Dominion. The support of many men wellversed in the practical as well as the theoretical side of economics had been enlisted, and through their co-operation it was hoped the branch would more than justify its existence. 'Professor H. Belshaw, professor of economics at Auckland University College, said the inevitable limitations of both academic and practical men served to indicate the functions which the society might be expected to perform. The proper understanding of economic principles in their application to current problems was of great importance to the community. Means would be provided for mutual discussion between thetrader and the trade unionist, and research could be carried out wherein the claims of scientific accuracy were not prejudiced by the stress of political or sectional economic interest. The society would be performing invaluable service if it could issue warnings of likely depressions in trade. "The constant recurrence of trade depression is forcing home the need of overhauling the economic system, but there is the danger of too hasty action based on imperfect reading of evidence," Professor Belshaw said. "Effective reform must be based on knowledge, and knowledge cannot be obtained without investigation. In the United Kingdom the importance of economic research is clearly recognised. There are few commissions or inquiries into economic problems which do not include a professional economist working in conjunction with men of practical affairs. In this country the practical man is included but I do not know why the Legislature is so suspicious of theoretical economists." Dr. E. P. Neale spoke on the questions arising from increased public indebtedness. He referred to the duplication of local body works, and stated that in almost every case expenditure in such a manner was waste of money. In some cases the value of a local body's assets had been exceeded by the cost of needless duplication of services, which had forced the Government to intervene in the raising of loans. The increase in the public debt was caused to a certain extent by charging current items of exto the capital account. It was not generally realised the cost of bringing immigrants to New Zealand was not paid out of the revenue account, but out of loan monies. Duplication of public works was due largely to public apathy, and the statistics of indebtedness should be studied more carefully by the public, which was generally more concerned with the statistics of racing or football. The following officers were elected:— President, Mr. A. G. Lunn; vice-presi-dents, Professors H. Belshaw and J. P. Grossman, and Mr. F. A. Hellaby; council, Mr. T. Blood worth, Mr. W. H. Cocker, Mr. W. A. E. Leonard, Mr. L. A. Mander, Mr. C. C. Munro, Mr. A. M. Seaman. Mr. M. Stewart, and Professor H. W. Segar; research committee, Professors Grossman and Belshaw, Dr. Neale and Mr. M. Stewart; secretary, Dr. Neale; treasurer, Mr. M. R. O'Shea.