THE AMERICAN PLAN

New Zealand Herald, Volume LXX, Issue 21578, 24 August 1933, Page 8

THE AMERICAN PLAN

The opinions expressed by Professor T. E. Gregory to the Institute of Pacific Relations on the Roosevelt policy constitute the first public pronouncement of its kind on the subject by an outside economist to reach this country. It is inevitable that there must be grave doubts and serious reservations about the plan entertained by men of the type and calibre of Professor Gregory, but there are not frequent opportunities of uttering them in this way. It might have been expected that Professor Gregory would view the gigantic experiment being tried in the United States as a sceptic unconvinced, for in many features it runs directly counter to the principles and theories of finance and economics with which he is closely identified. Yet, it should be noted, he does not indulge in denunciations or violent attacks. He merely predicts, soberly and categorically, that the policy will not yield the results claimed for it and ardently desired by those who support it, both in the United States and elsewhere; just as earnestly and sincerely desired, it may be added, by those who have not been converted to the same way of thinking. Professor Gregory, in the pronouncement briefly reported in the cable messages, suggests the only true test to be applied to all schemes and policies for promotnm economic recovery. The main question to be answered is, will they work, will they produce the results promised by their advocates 1 To quote the widespread depression, stagnation and hardship existing at present is to evade, not to answer the question. The more desperate the need for economic salvation, the more important it is to be sure of the remedies tried. The world as a whole is in no condition to try hazardous experiments. Those who say it could not be worse off than at present have a great deal to learn yet. That is why Professor Gregory's statement on the Roosevelt policy deserves to be studied carefully. It' is worth wider application, not simply as a pronouncement on a given case, but as a lesson in the way to regard all similar cases.