ECONOMIC DEPRESSION

Otago Witness, Issue 4041, 25 August 1931, Page 72

ECONOMIC DEPRESSION

SOME SUGGESTED REMEDIES ADDRESS BY MR JAMES BEGG. An interesting and thought-provoking address on “ The Cause of the Economic Depression and Suggested Remedies ” was given by Mr James Begg on Wednesday evening in the Workers’ Educational Association’s Hall, Union street. There was a good attendance of students representing all classes, and Mr Begg’s remarks claimed close attention. Mr Lloyd Ross (acting director of the Workers’ Educational Association) was chairman. The chairman, in extending a welcome to Mr Begg, said he was a prominent citizen, and while they might possibly not agree with all the points he would outline, those present were assured of hearing an address which would prove most interesting.

Mr Begg commenced by saying that the present world troubles arose from two principal causes —debased money and protective tariffs. The war was incidental, and the world had had ample time to recover, in the material sense, from that catastrophe. Monetary troubles were caused by the moral cowardice of Govern-

inents, who financed the war and the post-war period by progressive debasement of the currencies. The trade of the world was being strangled by high protective tariffs. Improvement should come if Freetrade could be brought about. The cancelling of international war debts would greatly assist recovery. Debasement of the currencies had proceeded so far that the shock of returning to an honest standard had brought millions to bankruptcy and destitution, while con-

tinued debasement had had even worse effects. Attempts to stabilise inflated currencies by schemes of “ managed currency ” divorced from gold or silver had failed in the past, and there was little reason to believe that they would succeed in the future. None of the alternative schemes appeared to be free from grave defects and might involve more injustice without removing the injustice already in existence.

Mr Begg said that if to prevent complete collapse some permanent inflation was necessary, the devaluation of the sovereign seemed to be the method that involved least risk for the future, and possibly represented partial repudiation in it§, least unjust form. It remained to be seen if economic recovery was possible, while Britain adhered to the gold standard as they knew it. If it was possible, it would be worth almost any sacrifice that they could make to assist in such recovery. Britain's wealth and "reatness were built upon character, upon unswerving rectitude in financial matters, and upon her reputation for fulfilling her obligations at whatever sacrifice. If this basis should be destroyed or even impaired worse troubles than any yet experienced might be precipitated. Experience showed clearly that no Government should either directly or indirectly have any control whatever of the management of the currency. Popular governments, in this field, ’were at least as great a menace as the despots of past centuries, and the demand for government control of banking and currency was equivalent to demanding that the fox should guard the hen roost, or the wolf be put in charge of the sheep fold. Mr Begg, who dealt with the various aspects of his subject in full detail, said it was with very great diffidence that he had ventured to state opinions on questions that were exercising the minds of great statesmen, bankers, professors, and reformers. His excuse must be that in these days of democracy it was . the opinion of the man in the street that would ultimately prevail. He spoke as one of themselves, giving the conclusions at which he had arrived after devoting some time and thought to these problems. If he had succeeded in stimulating interest in these subjects he was well satisfied.

Mr Begg was accorded a hearty vote of thanks at the conclusion of his address.