MUST REDUCE TAXES

Poverty Bay Herald, Volume LX, Issue 18057, 6 April 1933, Page 4

MUST REDUCE TAXES

AND INCREASE PRICES OVERCOMING THE DEPRESSION LONDON. March 20. “Fear of a world disaster will compel financial circles to consider the suggestion of the eminent economist. Mr. ,T. M. Keynes, ” declared Sir .Tosiali Stamp, a member of the Economic Advisory Council, in a speech at Glasgow. Mr. Keynes’ scheme was for international action in the direction of reducing taxation and increasing loan expenditure in order to increase world prices, and according to Sir Josiah “ mere fright at the word ‘ inflation ’ is no argument, but only a prejudice. “Tho world, more than ever, is bound together as a financial unit, and the times are ripe for a courageous advance in the direction of a self-retir-ing scheme, attached automatically 1° the-world price level,” said Sir .Tosiah, who concluded with the query, “Shall we be worse off if it is ineffective?”

Prof. T. E. Gregory thinks there is a danger in tho scheme by the ex penditurc on public works loading only to undesirable redistribution of existing national income, without stimulating prices of raw materials, or increasing the purchasing poAver of primary producing countries. However, Prof. Gregory says that Mr. Keynes rightly urges tho suspension of sinking funds.