IS BURDEN NECESSARY ?

New Zealand Times, Volume L, Issue 11659, 25 October 1923, Page 8

IS BURDEN NECESSARY ?

WISDOM OF DEFLATION POLICY QUESTIONED.

NEEDS OF’INDUSTRY.

By Telegraph.—Press Assn.—Copyright. Australian and N. 7,. Cable Association LONDON, October 23. Sir Erio Geddes, addresing the Federation of British Industries, which is meeting in Glasgow, said that whatever Britain did, it must now face a period of immense difficulty; but he believed it might be wise to remove one burden until more normal times had returned —the sacrifice involved in maintaining the continuous appreciation of our currency. Britain had been deflating the currency heavily for several years. The taxation was enormous. There should surely bo some connection between the country’s financial policy and the trade situation. Britain could not control inflation in foreign countries; but she could control her own continuous deflation, which had increased the burden of the national debt, dislocated business and involved 1 a continuous effort to adjust wages and costs. This burden could be alleviated by a policy less exclusively directed to the improvement of thq American exchange and more conecentrated upon the restoration of stable business conditions.

He felt strongly that they were, entitled to demand the most careful reexamination of the question by the most eminent commission that could be appointed, including financial and economic experts, and representatives of industry and labour.