THE COMMITTEE OF EXPERTS.

New Zealand Herald, Volume LXIX, Issue 21110, 18 February 1932, Page 12

THE COMMITTEE OF EXPERTS.

Sir, —The personnel of the committee appointed by the Government to inquire into the economic and budgetary position seems to have aroused criticism on the ground that it is mainly academic. It has been suggested; (1) That the membership should have included one or more bankers (2) that economics is not an exact science. Taking theso points in order, might 1 suggest (a) that exchange is only one of tho problems to be dealt with, (b) that exchange is not merely a matter ot buying and selling currency, but of determining the value of our currency at home and abroad, and the redistribution of purchasing power, decisions which are bound to affect every business, industry and individual in the Dominion. 'The bankers can, no doubt, advise that if a certain exchange policy is adopted, certain financial results will follow. That is quite useful, but the question is, what financial and economic results are desirable ? Exchange policy can then be shaped to achieve these results, provided exchange manipulation is a desirable way of doing so. As for the other point, economics may not be, an exact science, neither is medicine; but we take the advice of our doctors even though they differ. If economics is such an arid, useless study as these critics suggest, why is it that they tolerate the waste of public money on its study ? A. F. E. Stewart.