SCIENTIFIC RESEARCH.

Otago Daily Times, Issue 19804, 1 June 1926, Page 13

SCIENTIFIC RESEARCH.

TO THE EDITOR. Sir,— The proposal by the Government to establish a new department of Scientific Reesarch on the hues aid down by -ij Frank Heath, head of the Entrluh department, indicates the growing need ot coordination which is essential to success in all forms of production. Specialisation now the leading feature of al niodern occupations, and a high standard has already been attained in bran' climate and soil are rich in resources Haw material and finished products of he highest quality always command the highest price and a ready sale, but this alone does not complete the process of production, because it must never be overlooked that the production of goods is only apart in the Process of the production primary industries, agriculture, pastoralism. and mining form th -Q® principal divisions _ and the j the whole economic system. In this < e partment success primarily depends upon the bounties of nature, but in the secondary industries personal skill is of primary - portance because maimfactnreff -oods ru exclusively the product of labour. we see that Jo attain that degree J ennerioritv which we aim a 1 primarily upon rich natural resources and |,e Now al it S h U easv to see that the proposed department will‘have «o F°" er rssis Ss&u stsse Which® are enarate devisions jeqmr.^.J l ' igh mtch 0 benefit’ that now rereived Trom present State h^niS* now prevailing, a SSTUA* i" Mor, Icemen* in manufacture a^ e t They are tribute the discot ery. _ primary which the whole community is concerned and upon which the individual members can exercise their separate judgment, but R s far from simple or easily mastered. Distribution, as the word implies docs not concern itself with the modes of production. It appears to be much moic simple. Such is, however, far Jombcia? the case, because at every stage—and there are many stages —of an exchange a new condition arises, which in most cases is of an arbitrary nature—that is to say, not in accordance with economic law. From this conflict with economic law arises the rouble that afflicts more or less everv •mplovor throughout the civilised world, it centres in remuneration, as expressed in “price, which is the nominal standard by which wc determine “value” in exchange. To the public mind it appears insoluble from the mistaken idea that supply and demand are the natural law which determines value. Nothing could, however, be further from facts Suppiv and demand do not determine value. ‘ They only determine the variation in prices. Value is a distinct subject from prices. Value is an intrinsic quality found both in the person who produced he goods am in tlie goods themselves after they are completed. The price we fix upon the goods is said to be their nominal value, but as those fluctuate from time to time without in the slightest degree affecting the intrinsic durability of the -poods we see that the rise and fall in prices is an effect brought about either by a scarcity or an abundance, the result of external factors quite distinct from value.

Briefly, an economist would say that the defects which cause so much trouble in our industrial system arise front two distinct causes —First, in the process of distribution where there is far too much overlapping and unnecessary duplication which increase the cost paid by the consumer beyond the price which the true economic conditions would determine: and, secondly, the system by which the wages of labour is determined docs not rest upon a sound economic basis. The first is easily seen to be highly nnecono ic. but the second requires a great deal of expert explanation before it can bo understood. The need for scientific research will, therefore, bo apparent. Obviously the university department in economic science does not supply the necessary data for the Government to work upon, and a specially appointed board of economic experts would be an inexpensive experiment which would greatly enlighten the public. Co-ordination between every department is one of the essential conditions and of no less importance than co-operation between employers and employees. These problems have in their solution only a remote relation to the problems of sunnlv and demand, rent and interest, banking and finance, and the foreign exchanges, which now' burden the professors of eco-

r.omies to an extraordinary perplex tiro student who is light,—l »m. cto.. May 30. decree and seeking for SIVERTSEX.