W.E.A.

Timaru Herald, Volume CXXIII, 22 June 1926, Page 4

W.E.A.

AYKEKXY LECTURE. GEE.MAX REPARATIONS. On Saturday evening last, 11) o I iniani Centre of tile W.E.A. and friends listened to a very nislnietivo lecture by Professor A. jj. 0. Fisher, Erotessor of Economies at the University of Otago, on the text : “Does it Pay to Win a AVar?” The president of the Centre, Air Jt. Stewart, presided over a fair attendance. Ah' Fisher's lecture dealt with Oernian reparations, and ho argued lliat “Don’t Buy German Goods,” and ' Squeeze Germany for Reparations” are economically contradictory. “You cannot act on both ; heller drop both and let us have hope for peace,” was rhe conclusion to be drawn from the lecture.

Air Eislier discussed the question whether receiving something for nothing, which the receipt of reparations payment means, was good for the receiving country. Jt was apt to bo demoralising to some sections of . tho people, and injurious to other sections. Suppose that tho people of New Zealand could obtain their daily tood as the Israelites did at one tune by gathering it from the fields. Saved from the tasks of working for a livelihood, the people would lose their habit of industry, while butchers and. bakers woidd cry out against the injury to their business, and demand legislation prohibiting the use of manna. That was, of course, an exaggerated illustration of the mischiefs liable to follow

a country’s receiving a largo amount of something for nothing. Germany could not make reparation payments in gold. She had a large amount of gold in hand before tho war, hut it was all spent in a very short time. Reparations could only be paid in goods, just as New Zealand’s interest . on loans must bo paid in London in goods, wool, frozen meat, dairy produce, etc. This ivas managed through a very complex organisation, which dealt with the documents representing the values ol the produce sent Home. iho New Zealand Government, through that channel out of revenue bought docuynonts, representing, say, a million. On the produce being sold at Home tho proceeds were passed through the trace channel to the representatives of our Government at Home, to bo credited to the interest fund. That was the way, and tho only way, in which Germany would pay reparations. Germany must raise money for the purpose, bv taxation or from profits oh State railways or other State investments—must raise revenue enough to have sonic tot spare for reparations. Germany as a country does not make the goods which are transmitted, any more than New Zealand ns a country provides the exports. The work was done by individuals in both cases, and in bot.i ease* tile transfer of ownership of tne cash proceeds is conducted by the trade organisation above mentioned. the producers in either case do not erne where the money they get comes from in the last resource, nor do consumers care to whom the money they pay is iinally credited. It was quite possible for reparations to ho paid with the proceeds of German goods exported to some other country than Great Liitam, where they have perhaps compel.cu until British goods of tho samo kind. . Hio result was the same, and the. principle the same. Some people were indignant ac the idea of near neighbours bu\ mg German goods, but there was not much difference between near and m-G'“ neighbours in the principle ol 1 c dealimu Germany must export g00d.,, or she could not pay reparations. Hu* essential conditions of the pa A "* cnt 1 i reparations was that Geiinnn. raise revenue for the purpose somoho ~ and that a market or markets must be had for the goods, the cash proceeds of which would be used for invmonts It had been aigued that the demand for export prwlimtion must have stimulated German ludustic.s. But the demand for reparations inca..t more taxation, higher leduaj etc., and experience proved that tiiest Sum"P &2 ui* cm ploy m ei it, *" a nd last year there was ;'nRnT' m Tho Great Britain of 'receiving German goods had boon injurious to many industi ws s. th. t demands had been made for t«nft m other restrictions. he people as < whole might benefit irom lmv.mg certain goods cheaper, Init the home Producers of such goods were Joscis in eases of the divergent interests d producers and consumers, tlm ...,te csts ~f consumers were now consi loiul hint those of the producers in the second piace—perhaps because produces muj he supposed to have become used to dislocations of their businesses, tinough the introduction of new machinery o now tastes, or new tashions, and had so often lmd to devote their energies to now productions Hero 111 . l - “ ; question whether it was probable hat the reparation payments will lx. long, continued. The lecturer thought t»m> would not. It was not dkdy 11 at tl ■ orcat-maudsons ol German people of to-dav would he willing to continue , to pav the tribute to a l<»'eigu lu u Inch their greut-grandlathe s had agi.'ed to pay. If that were ud.n.tteL then the question was whethu the i,mincers should have Lhc.r business MS KA-.WfTS reparation payments ceased Jt had been sug-msted that reparation pajnients should be restricted to certain lines of -mods, hut seeing how the hi si ness was conducted, through the ordinary trade channels between experters and importers, it a as easy to see that difficulties must arise through the interference of an ml“ that course. New Zealand had not received a large amount ol reparation fend through Great Britain, ami the lecturer thought that we were 0., likely to receive much nroie. A , o< d deal might be said in favour ol seiappme' the whole thing, that it would have been better to have abandoned the claims years ago, or that they had been restored to tho modernto dcimu. J of tho Armistice agreement, instead of being •.-■welled to many times that amount A great deal might also be said on the senlimenta and mmal aspects of the situation, hut the lecture had been confined to the business The lectir'o occupied about an hour, end questions being invited, about forty minutes were devoted to ausweiim'' these. Amongst Ins replies, Air Kishi’r said that no doubt the linpoits of German coal had been a 1 actor in the decline of the coal trace ' of Great Britain, but it was not the man factor—the loss of sources ol iron and Steel had had a great eltect on German industries. This loss, he understood, had been taken into account m calculating reparations. The payment ol a large amount of money by Trance on the’close of the Franco-German G ar had a bml effect on Germany, leading to extravagance on the one hand, and t) wasteful expansion of businesses ou .speculative lines. The increase of tne reparations demands was due to populai clamour. If u- few leading men .had * tood out against it they would have been listened to. but they dal not oppose it as they should have done. In this connection Mr Fisher 'recommended pe.rsual of. Air Keyness hooks on the subject. It was quite probable Hint the extensive linrelia.se of New Zealand wool by Germans, whet hoi here or in London, had something to do with raising or keeping un the price of wool here. Expanding remark about services as a source of reparal ion, Air Fisher referred to the possible services rendered i>> .j.mnsts. in Germany,, by the people, idusiiating

tills by the importance of tlio American tourist, business to Great Britain.' Americans took a vast amount of American money to Europe every year and left it there, available for purchase by the Government to send back to America for international payment. It Germany laid herself out to attract British "tourists, their money would be exportable to London, without doing harm to any .Home industry. A vote iof", thanks and high appreciation. of the lecture was moved by Mr J. Jones, and carried by acclamation.