THE NEW ECONOMIES

Otago Daily Times, Issue 21600, 22 March 1932, Page 12

THE NEW ECONOMIES

TO THE EDITOR.

Sir, —In one of the many fussy and importunate letters emanating from the pen of Mr Mae. G. Walmsley I read; “The other evening Dr J. D. Salmond suggested that the genesis of our present troubles may be found in a small coterie in New York. This is the kernel of Mr Field’s ‘Truth About the Slump,’ a most brilliant survey of the world situation which does credit to our New Zealand author who mined its data and marketed it for us.” . ... , One may, I think, venture without offence to say that, judging from Dr Salmond’s utterances since his return to New Zealand on the subject of education in Russia, it would be well were he for many years to come to confine himself to exegesis, a much more fruitful field for his undoubted talents than the dropsical deliverances of misery-mongers of the type of Mr Field and other sour secretaries. Three quotations from Mr Walmsley s patron saint in currency in “ Truth the Slump ” will suffice to convince the man in the street (let alone currency students) that to a careful and discerning reader there is in Mr h ieid s incoherencies a strong leaven of sheer imbeQuotation 1: “The practical effect of this would be if, for example, we had fixed our par point with the British pound at the 1925 level, and the general level of our produce prices fell 50 per cent, below the 1925 level, that our pound would be worth only 50 per cent, of an English pound." Quotation 2 (page 166): With a produce decline of 50 per cent, below the par point the importer buying goods in England for £IOO in British pounds would have to find £2OO in New Zealand pounds to pay for them.” Quotation 3 (page 167): It (Field s cure) would make New Zealand an attractive place of residence to persons with fixed incomes. Civil servants in India, etc., and other such persons would probably be much attracted by the idea of residence in New Zealand on retiring on pension if they could exchange £4OO in British pounds for £BOO in New Zealand pounds.” The sloppy inconsistency embalmed in these three quotations leaves Mr Walmsley thrilled into ecstasy—to careful readers Mr Field’s book is merely a tissue of vulgar abuse and bemused fallacy, the fruit of a bleak and bitter mind.

The Rev. W. W. MacArthur, in his letter of March 11, is strongly reminiscent of our kindergarten days, and his ecstatic prediction at its close is wholly unimpressive. We know well that the “ method devised” of which he speaks has since 1923 received the treatment it deserves. In Canada fts progenitor gave evidence before a group of hankers and was thanked —nothing less could have been tendered, and nothing more was deserved. That was in 1923. In 1924 Major Douglas was invited to give evidence before the then Labour Government’s committee (which, by the way, scornfully rejected the “method”), but he declined —dodged the position, in fact. After a lapse of many years he ventured to testify before the Macmillan Committee, finding once more a hard and strong soil. The type Professor Gregory speaks of as “ currency

cranks ” can always secure attention, particularly in times of stress, but the efforts of a noisy local coterie, of which the rev. gentleman is one. can hardly expect to succeed where Major Douglas has ignominiously failed. The Australian leaflet, however, known as the “New Economies ” a devout supporter of Mr Lang—urges active propaganda such as addressing meetings, frequent letters to the press, and so on. Hence the weekly output of subscribers in Dunedin. —I am, etc., Critic. Dunedin, March 19.