RECONSTRUCTION.

Star (Christchurch), Issue 20058, 22 September 1920, Page 6

RECONSTRUCTION.

PART TO BE PLAYED BY ECONOMICS.

Irofessqi’ J. B. Condliffo, Professor or Economics at Canterbury College, gave Ins inaugural lecture in the Cologo Hall last night. The title of the lecture was “ Economics and Reconstiuction.’ Dr G. M. L jLester preS . over - o good attendance irofessor Condliffe said . that economies was a much more important subject now than it was oven ten years ago, certainly much more important than it was twenty years ago There were two reasons for that.' The first i eason was that the difficulties of orgamsaiion were very great in. every country, and economic systems now presented problems that called for all the consideration people could give to them. Economists wore much more modest and much inoro serviceable, than they acre a century ago. The prosent-dav economist did not regard himself as an apologist for any system of economic organisation, an attitude that formerly was very common with all economic writers of all shades of opinion. % The second reason' lor tho revival of interest in economic studies was that the economic situations in all countries today called for the best thought that could be given to them. Whatever happened for good or ill, it was certain that the next decade would prove to bo *}}} epoch in the history of industry. Either the prevalent unrest would issue in industrial warfare and perhaps revolution, or a new era of co-operation would begin. From every angle it seemed desirable that an endeavour should bo made to enlist the active interest, tho inventive ness and capacity of every person engaged in industry. How that might bo-done was. not agreed, but it was clear that the first essential for industrial pe.ype must be a recognition of tho dignity of human labour and the common nature of men. Such a recognition involved the abandonment of autocratic methods in iiidustry and reorganisation that would give ( more scope for individual, initiative and control. Only in that way could people obtain tho greater output of goods that was so urgently needed, and, still more important,, only in that way could industry be made "to serve as a means tq mail’s development, instead of an end for his energies. It was with a sense of relief one turned to Mew Zealand, where industrial troubles were not so acute, partly because of a higher standard of couilort, but very largely because of the greater degree of industrial freedom so evident hero- There were many avenues ol escape from tho factory, and a verv large proportion of the’industrial life hero gave an opportunity for self-expression and self-control, 'Fortunately, Mew Zealand was very imperfectly industrialised yet. There were many leaders of thought hero wile looked forward, and would hasten'the time when .Mew Zealand would bo a manufacturing country, supporting, perhaps, ten to fifty millions of inhabitants. Such an ideal of progress raised grave doubts in one’s mind," for it was clear that as the industries developed they presented exactly the same problem of industrial unrest. Mew Zealand was once claimed to be a hmd without strikes, but that state of affairs was legendary now, and Mew Zealanders must pass through much the same phases of development in their urban industries as older countries had done. But their strength lay in the peasant proprietorship of their soil, in then; rich resources and the direct connection of their wealth with tho primary industries. At the present moment there was a considerable divergence of group-inter-est between town and country, but that was a product of tho abnormal jici iod through which tliev wore passing. The prosperity of Mew Zealand was based on rising prices for primary produce, _as tho history of the years since ISO.'J showed. 'When prices were rising. Mew Zealand, as a borrower and primary producer, reaped the benefit or prices racing,ahead of costs, and tho extraordinary rise of prices during the war perk.,! had brought a sudden access of prosperity to tho Dominion. The first direct benefits of the boom had gone.to tlio- e connected with the primary industries, and the suddenness of p l ® change bad not given time for those benefits to be diffused over the whole community. r !!io problem was a, temporary one, and must not be allowed to obscure tho i end and vital connection there ahvava must bo between the prosperity of the country and the town. 1 A much more .serious difficulty was the danger the neopin here had created for themselves by allowing speculation, to run ahead of real values. Triceshad been rising continuously for twentyfive years, and anticipation had kept ahead of the actual values of land. The abnormal demmd.of the war period was bound tcS result in a laud boom; but that boom had been maximised by an unfortunate policy of war finance’ and •in Hat i on, until they were lacing the possibility of a, serious crisis. It was ton late now to avoid a good deal of loss to those unfortunate settlers and manufacturers who, starting late were on the margin of profitable existencebut it was not too late to see that the position was not ma.de worse than it, nced .be. . Continuance of inflation, especially if it was accompanied by n. sudden increase in immigration, might substitute severe depression instead of a wholesome contraction. flho greatest service the economist could render was the presentment of a scientific, orderly and dispassionate description of the actual facts of economic oi ganisation. A knowledge of such facts would do more to avert industrial trouble than any body of well-meant re■form. A vast amount of research was necessary especially in a new country, us Acw Zealand, where llic goonomie organisation, complicated as it was hv so much experiment, was calling out ior a complete survey and analysis. Research was not possible except by cooperative labour, and one of the'first conditions necessary was the training to a high standard of a. great number of skilled investigators. People must recognise that a knowledge of economic facts, to be of any service to the community at all, must be widespread throughout the community. Thanks t 0 the quality of the pioneers .who settled Mew Zealand, the Dominion had a start that was unique; but those of tho present generation would bo false to the traditions of those great-hearted men and women if they rested on their labours. Tliev must push forward still further, anil one. of the first requisites of ordered and enlightened progress was a real appreciation of the facts of their organisation. It was because one had no faith in mechanical reform that a wide extension of adult education seemed so important. and in itself it was an end worth while, for' tliev must move toward the ideal of industry organised, so as to give more and more opportunity for the development of men. A hearty vote of thanks was passed to the lecturer, on the motion of the chairman.