PRODUCING AND SPENDING.

New Zealand Herald, Volume LXVII, Issue 20623, 23 July 1930, Page 16

PRODUCING AND SPENDING.

Sir.—"More Production" inav bo a good enough slogan, but all the facts around us show plainly that not want of. _ spend in*' power, but want of judgment in spending, is causing our financial unsoundness, and without some change iu our attitude in regard to spending very little will he gained by any increase in output. The facts are plain enough: Since 1911 our j- production per head has increased by 69 per cent., while since 1914 our exports i liavo doubled, and our private wealth per : head has increased by 104 per cent. Our j health and spending power are now I greater than in the prosperous years before the war, but our manner of spending is vastly different. The spending habits acquired during tl)e boom, the lure of the cinema, the car, the radio and the other novoltics that have so largely captured the imagination of mankind, with that criminal snare for human weakness — the hire-purchase- system extended to luxuries —have combined to produco such an expenditure oh commodities, none of which adds to income, but many of which consume it constantly, as was never dreamed of 20, years back. The vast difference in effect produced when income is spent on fruitful commodities, which, by aiding production, increase their owners' incomes in placo of thoso rapacious ones, of which the pleasure car is chief, which not only yield nothing, in income but continue to devour it throughout their entire existence, is npt so generally taught as it should be. Not tne tariff, nor high \\'ages, nor the cost of the war, but the uneconomic spending of far too largo a part of oui national income is the chief cause of out private and jmblic financial unsoundness. It may be rioted, also, that while increased production is not always easily attainable, wiser spending is within reach of every one of us.. , Manurewa. * J. Johnstons.