NOTES AND COMMENTS

New Zealand Herald, Volume LXX, Issue 21553, 26 July 1933, Page 8

NOTES AND COMMENTS

JAPAN IN MANCHURIA At a function of tho Japan Society in London, Lord Bricjgeman spoko of tho recp.tifc troubles which had arisen in Manchuria and said that if every one in Britain could realise the extraordinary complexity of the problem that Japan had before her, with tho obligation of protecting tho legitimate interests and lives of her own countrymen in Manchuria, there would be very little misunderstanding of her at all. If they knew the provocation to which Japan had been subjected and tho many breaches of agreement from which she had suffered, and realised that there was no authority to protect her citizens from tho attacks of irregular looting forces under no control, he was sure everybody would fully appreciate tho difficulties under which Japan had laboured and express their pleasure at tho amelioration of the situation. GENERAL SMUTS' OUTLOOK In a speech at a dinner given bv tho Rhodes Scholarship trustees. General Smuts said that after the war people spoke very lightly about a world fit, for heroes, but they had sinco had occasion to laugh at that idea. Yet tho world into which tho Rhodes Scholars were entering was a world tlia't offered possibilities for great adventure, and such a world was fit' for heroes. Tho old days of comfort, peace and security, and of golden rules to livo by wero dead and buried, and those now going out into the world would find it full of dancer. "We have had our chance and perhaps we have made a mess of it," said General Smuts. "Perhaps only demi-gods could have struggled with success through tho trials we havo had to endure. I hope you may have more success than we havo achieved in the age through which wo havo lived. Tho world is becoming much harder to live in, but it may be in many ways a better world. I havo a feeling that you will find it a friendly one at bottom. We think so much .to-day of tho antagonism of race to race, yet nothing has impressed mo more iii recent years than tho goodwill that will universally exist among the peoples of tho world. This friendly feeling is universally diffused among the nations, but somehow it has not found expression under tho old system of society which wo havo inherited from tho past." RAISING PRICES BY CONTROL "At home, while the efforts of many of our statesmen and economists are devoted to the task of raising artificially the prices of primary commodities, including foodstuffs, those efforts last year were largely negatived by the irony of Providence granting abundant harvests almost throughout the world," said Sir Clarendon Hydo in a recent speech. "We witness tho compulsory destruction of millions of bags of coffee; tho difficulties presented by excess crops of sugar and cotton; the efforts to ward off tho importation of wheat through the establishment of a quota; the attempted restriction in the output of tea, coal, tin, rubber and oil; tho indignation felt by the British farmer that a properly organised industry permits Denmark to export to us excellent bacon at a very cheap price, and ho looks on helplessly while Canada, New Zealand and Australia send forward supplies of cheap butter and cheese, and the Argentino exports to us meat at a price which leaves it within the reach of all. All this, of course, makes it increasingly difficult, in defiance of the law of supply and demand,, to raise tho price of food and raw materials, which is admittedly the target of our statesmen and economists. It appears just possiblo that it might be well to start working on another hypothesis—to accept the present position of over-abund-ant supplies as temporary and evanescent; to accept the cheapness of primary commodities as a useful startingpoint for increasing manufacturing output and reducing costs of production. As, however, this might, interfere with rigid wages and trade union restrictions —two things which aro sacrosanct and hardly ever alluded to by our statesmen and economists —I suppose nothing can be expected in that direction." INCREASED OUTPUTS "We aro called upon to pay homage to a fetish known as the standard of living—a catchphrase which no one attempts to define —which varies with tho domestic conditions of each individual and seems to be based on tho continued expenditure of the maximum income of a boom period," continued Sir Clarendon Hyde. "If our economists and statisticians would tih-n their attention to an attempt to define by an acceptable scientific formula the manner in which tho profits and risks of industry should be apportioned among the three partners of production and distribution — labour, brains and cash capital—they would ronder a real service to tho world. Although in the long run price will control production, it is largely to increased outputs'that we must look for tho solution for unemployment. While unemployment stands with unreduced numbers, there aro many who believe that tho "increased output per man hour, duo to the mechanisation of industry, precludes tho possibility of full employment of the industrial population in tho future. To this belief only time can give the answer. It is, however, comforting to remember that tho same idea has been prevalent at earlier periods of our industrial progress, and that subsequent events have proved it false. Mr. Henry Ford in a very picturesque phrase recently- declared that machinery is still in the 'ox-cart' stage. It is to new trades, new manufactures and the satisfaction of now needs, as well as the development of existing trades, that the attention of the industrialist must be directed. Let us hope that some agreed workable system of economic co-ordination will be found which will regulate the range of manufactures anil prevent wastefulness and cut-throat competition. Unfortunately, there is as yet no solution in sight,"