ADJUSTMENT OF COSTS.

New Zealand Herald, Volume LXVIII, Issue 20961, 26 August 1931, Page 11

ADJUSTMENT OF COSTS.

MEETING LOWER INCOME.

PUBLIC AND PRIVATE FINANCE

PROFESSOR COPLAND'S VIEWS

[BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON, Tuesday.

A statement regarding the economic problems of the Dominion was made today by Professor D. B. Copland, of Melbourne University, in an interview prior to his departure for Australia by the Maunganui to-day. Professor Copland has spent three weeks in Wellington investigating the economic and financial position of the Dominion and his statement was made with due regard to the facts as he saw them.

"The fall in export prices has been of the order of 40 per cent.," said Professor Copland. "This has reduced the spending power of rural producers and has caused a serious decline in the demand for locally-produced goods and services and a contraction of output. The money value of the national income as a whole has been seriously contracted and this process is going on now at an increasing rate. "Productive capacity has not been impaired. Indeed, as in Australia, the volume of export production has been increasing, but its maintenance depends upon an adjustment of all costs to income. To meet the fall in national income and the general decline in prices an adjustment of public and private finance is required. The process of adjustment has not. proceeded far and it must be accelerated if unemployment is to be checked and financial stability restored.

"There is no doubt about the ultimate capacity of the Dominion to solve the present difficulties, but the solution depends upon the readiness of every section to accept its full measure of responsibility in the common task. The economic depression is so widespread throughout the world and the fall in prices is so serious that a return to the financial and economic standards of the post-war era cannot be expected.

"New Zealand will not be immnne from the troubles that have afflicted other primary producing countries," continued Professor Copland. "Her credit is high and she should seek, by every means in her power, to preserve this cherished possession, but it can only be preserved by facing thp full facts of her position. "To adjust public and private finance to the falling national income as measured in money values is a problem that has confronted all countries at some time in their history. The magnitude of the problem to-day is greater than at any time in the history of New Zealand and the solution will require the pooling of her resources of leadership and knowledge. It is only by common agreement that adequate measures can be taken and these measures must involve general sacrifice and a review of economic policy."

" A WASTE OF MONEY."

SOUTH ISLAND RAILWAY.

MR. J. A. NASH'S CRITICISM.

[BY TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON, Tuesday. A condemnation of the South Island Main Trunk line as a sheer waste of money was advanced by Mr. J. A. Nash (Reform—Palmerston) in the House of Representatives when referring in the Budget debate to the expected report now being prepared by the Railways Board upon lines under construction. " it. is a good railway, too." interjected Mr. E. F. Healy (Government — Wairau).

Mr. Nash: No member of this House knows better than the member for Wairau just, how good that line is. A white elephant is heinn built down there.

Mr. Nash said it would be interesting to know when the report of the Railways Board would be available on lines under construction.

Mr. Healy: You are not worrying, are vou ?

Mr. Nash: Well, everyone, knows that if that line is completed, it will have to close dowii. Other railways have been stopped we know. A- Voice: Palmerston North, for example. Mr. Nash: Well I am not taking exception to that. There was probably a little bit of politics in that, but the Government has gone ahead with somethinc that is worse. Mr. Healy: Do you want the South line stopped ? Mr. Nash: If it saves the country mnriev. ves.

The lion. A. J. Stall worthy: Is that not sub judice ? Mr. Nash: I don't think so. A member of Parliament is quite within his rights referring to it if lie chooses, and he will not be put off the track by the Minister of Health. I have always opposed'this railway because it is a waste of money. The time will come when (lie people of New Zealand will realise the great mistake that is being made with the line.