OTHER PAPERS’ OPINIONS.

Putaruru Press, Volume XI, Issue 268, 7 September 1933, Page 4

OTHER PAPERS’ OPINIONS.

CURRENCY QUESTION. A candid reply, and one that provides food for thought, was given by the acting-chairman of the Dairy Control Board to a meeting of farmers in Hamilton, when he said that he knew little about the currency question, as owing to his multifarious other duties he had been unable to devote time to study the subject. This straightforward answer covers the position in which very many eminent businessmen find

themselves to-day. When times were normal there was no need for them to bring their attention to bear ; on such a subject, and few became ' familiar with the question unless ; chance or business interests caused them to take the matter up. Now that times are abnormal and economic difficulties press, the great majority of businessmen have neces- 1 sarily become more and more absorbed in the details of their own immediate affairs, in their endeavour to carry on amid circumstances for which they have no precedent in their own experience. The great majority of businessmen suddenly find that they are compelled to face various phases of economics to which ' they have given no attention. It is only natural in these circumstances to expect many and varied opinions on monetary and such questions, and that in the welter of this criticism fundamentals are often lost sight of. In the past too much has been taken for granted, chiefly because new credits flowed freely, thus maintaining purchasing power, and the problem was not so easily discernible. In the post-war period, however, the growth of an intense economic nationalism, in which every country has striven to be self-contained, and the wonderful advance made in machine productive power, have resulted in a glut of markets. This, coupled with the return to the, gold base by the British financial authorities, which restricted currency and credit, and thus purchasing power, tQ: an almost - unbelievable I extent, has forced attention the Empire over to the basis of currency and credit, in a manner which has never previously been known. Old theories have been held to be fallacious, and an insistent demand has arisen in this Dominion, and other parts of the Empire, for a full, open and independent inquiry into the whole position. Thus, while there may be room for argument and also much admitted ignorance of the questions at issue, there appears to be no legitimate reason for refusing the inquiry referred to. In the face of the outstanding evidence that can be adduced, and the lead given by the acting-chairman of the Dairy Control Board, who has stated publicly that he favours such an inquiry, it is one that should be supported by the business community. The experts’ cure of yesterday—cuts in wages—has proved to be suicidal. To-day leaders in England and America are endeavouring to restore these cuts, as they realise that without purchasing power business cannot function successfully. The problem of to-morrow is to ensure the general restoration of purchasing power on a stable basis. This problem, however, cannot be solved without altruistic research. In these circumstances the inquiry referred to would appear to be urgent and essential, and the acting-chairman of the Control Board is to be congratulated on his stand.—Matamata Record.