ECONOMIC AFFAIRS

New Zealand Herald, Volume LXXI, Issue 21951, 7 November 1934, Page 10

ECONOMIC AFFAIRS

INTRUSION OF STATE CHANGE IN WORLD ORDE^ MR. DOWNIE STEWART'S VIEWS The intrusion of the State in nomic and social affairs was dealt by the Hon. W. Downie Stewart, Mp in an address to the Associated' Ch bers of Commerce conference in Ch ' ln ~ church on "The Influence of Cornier Opinion on National Policy in a Ch ing PJra." D 8" Mr. Stewart said be thought it be recognised that in the great wo2l movement now on foot there was certain inevitability which could not hj! ignored. It was no longer feasible tn let things take their course and adi themselves by natural economic la" which was the policy of the Liberal' in the nineteenth century. Few np | 5 would dispute the fact that where? before the war, in capitalistic com* tries, the intrusion of the State w regarded as abnormal and exceptional in economic and social affairs, now * every direction the State was bein! transferred to the very centre 0 f national life and being called in to organise and control great changes such as the initiation of a national agricup tural policy for Great Britain. Planning lor Community "In matters of quotas, restrictions exchange, regulations in trade, com" merce and finance," .Mr. Stewart said "we see on all bands in nearly everv country the State being called m • to replace private enterprise aud plan the life of the whole community. It i s Uut necessary to agree with this trend— o ne may even deplore it—but 1 think it jj necessary to recognise its inevitability"

The greatest service the Associated Chambers of Commerce could render said Mr. Stewart, was. to see that the extensions of State functions were not accompanied by evils and dangers The first danger was that of believing that the Government could spend money on State enterprises regardless of whether it was expended on a business basis or not. The second danger was that in the search for economic security under a controlled economy every business would tend to become static and non-progressive and incline toward stagnation.

If planning was inevitable,, every precaution should be taken to see that it did not become conservative and reactionary a_nd that the community did not lose the benefit of progress* and improvement. Sanctity of Contracts There was an increasing tendency to hold in light regard the sanctity of contracts. Several instances had come under his notice in the present sessionof Parliament, and he had been surprised at the cynical attitude of some of the members. There was also being openly expressed the opinion that Xew Zealand should not bother to pay interest on her overseas debts, and he thought the chambers could render a real seivice by endeavouring to check that tendency.

In the process of trying to get rid of certain evils care was needed that greater evils should not be created in their place. Official power and authority, once it was created, tended to expand and it was verv difficult to curtail it.

"Tf the world is bent o.a moving toward more and more Government direction and control of industry," said Mr. Stewart. "I regard it as your highest and most important fluty to safeguard freedom and liberty for the individual as far as practically possible."