ROAD TO PROSPERITY

Otago Witness, Issue 4074, 12 April 1932, Page 72

ROAD TO PROSPERITY

RESTORATION OF CONFIDENCE THE PROBLEM OF REPARATIONS AUCKLAND, April 4. That the only road to prosperity is the balancing of national, domestic, and all other budgets, is the opinion of the Hon. Roland D. Kitson, a director of the Bank of England, and deputy chairman of Messrs Dorman, Long, and Co., Ltd., builders of the Sydney bridge, who is a through passenger by the Niagara. Mr Kitson said that in more senses than one money was plentiful, but the difficulty was to find invesements with proper security. World conditions were terrible, but he was glad to say that in England there was a greater feeling of confidence than there had been for a long time. This was no doubt due to the advent of the National Government and a real desire to economise was finding expression. What had happened was the inevitable result of spending of too much money by individuals, States, and nations. When economy and caution once more held sway * money would again be forthcoming. “ The only way to get money is by saving.” said Mr Kitson, ‘ but f do not think trade will ever be right again until taxation is reduced. We cannot get national trade and consequent prosperity until we get back to stability. What is happening to-day is that countries are being made to balance their budgets. They are being made to do it by international opinion. We are told that the gold standard has not worked very successfully. On the contrary, 1 think it lias. Because Great Britain has gone off the gold standard it does not follow that the gold standard in itself is a bad thing. Money was being drawn out of London for East and West to such an extent that we could not go on. Without patting ourselves too much on the back we have settled down and faced the position pretty well. “ Every economic conference has come to the conclusion that one of the causes of the financial chaos existing at present is war debts and reparations,” proceeded Mr Kitson. “We have got to the ridiculous position that America and France own more than three-quarters of the bank gold of the world, and the remainder is but a drop against the debts we owe America. America says that the only payment she will take is gold. Well, we have not got it. The answer to this is that commonsense will come out on top. A solution will be found, and the sooner the better.”

Mr Kitson said he was impressed with what he had seen in Australia. Every large city or town was in advance of its time and extremely up to date. Having heard so much about the bad time tralia was experiencing, he was struck with what appeared to him to be the country’s prosperity and its fertility. “ I feel convinced that as soon as Australia gets over her troublous time her growth will be rapid. I feel that the country has a great future, but she will have to learn to go slower.”