The Timaru Herald WEDNESDAY, FEBRUARY 23, 1938 THE KEY TO ECONOMIC STABILITY.

Timaru Herald, Volume CXLIV, Issue 20969, 23 February 1938, Page 8

The Timaru Herald WEDNESDAY, FEBRUARY 23, 1938 THE KEY TO ECONOMIC STABILITY.

Notwithstanding the diplomatic and political storms that are sweeping over Europe, the steadiness and sturdiness of Britain’s inarch to economic recovery, is at once the wonder and envy of the world. Although the cable messages are full of a succession of crises that are disturbing Central Europe, and, to a lesser extent, the Homeland, it is most interesting and most encouraging to note that the slogan “prosperity is here again,'’ was to note that the slogan “prosperity is here again,” is Britain’s keynote. The justification for this confident tone is the plain evidence of Britain’s prosperity given in the official statistics which show that industrial production in 1937 exceeded 1929 by 25 per cent., apart from rearm ament. “There is no doubt,” declared Lord Derby, who deputised for the Prime Minister, “that the United Kingdom is in a very strong position to meet any fluctuations of world conditions.” The explanation is obvious. The most implicit confidence reposes in the British Administration in its relations with business and industry. In the United States, however, where business recession is causing grave concern, the best-informed leaders of industry are saying that while there is no adequate justification for the unfavourable economic situation, business stability lias been sorely undermined by fear as to the future of American enterprise and the rules upon which it is to be permitted to be conducted. It is generally agreed that the situation will not improve while certain economic policies are operating towards Unbalancing the national economy. And what is the remedy? “There is one remedy and only one,” declared one of the leading businessmen of tiie United States tiie other day, “and that is that confidence must be re-estab-lished by demonstrated fact and understanding as to the objects and methods of the Administration in Washington. As a matter of fact, it is generally agreed that the course of business in 1938 in the United States depends on decisions that will be made at Washington and on policies that will be adopted them. The difficulties are obviously not economic, but political, and the key to the future prosperity in the United States —and all countries -—is cooperation between government and business.