The Wanganui Chronicle THURSDAY. MAY 10, 1934. THE BANE OF BALLYHOO

Wanganui Chronicle, Volume 77, Issue 109, 10 May 1934, Page 4

The Wanganui Chronicle THURSDAY. MAY 10, 1934. THE BANE OF BALLYHOO

p\JO serious man of affairs believes that prosperity has re turned to Australia,” writes Sir Geoffrey Ellis, M.P., dis ussing the Cambridge lectures of Professor Copland, of Mel

bourne. “The Premiers’ Plan has worked well and Australians deserved every credit for the maintenance of their effort, while the Commonwealth Bank and Loan Council had materially assisted recovery. Nevertheless the increases in wool prices had probably reached its limit, and other prices remained depressed. Australian manufacturers could not compete in world markets and there was no prospect of increased population to take up the slack in production.”

The foregoing is the reaction which was to be expected from the activities of Professor Copland putting “the best side to London’’ during his recent visit to Europe. Professor Copland knows his case well, but it is useless for public men to engage in the obvious art of ballyhoo in regard to public finances. The data is obvious for him who will to read, and there are many who desire to do so and who do read. It will be remembered that when Mr. Coates made his announcement during last year that he had a surplus of £40,000, the statement was not received as accurate in New Zealand, but. the London reactions to this statement were exemplified by a comic, cutting, cartoon, of exNew Zealander “Low” in the London Standard. In short, London laughed. It is the bane of ballyhoo that it cannot foresee the reactions which it will engender. Public finance should not be treated lightly, and it is better to state the true facts plainly, just as a merchant does when he presents his accounts to his banker. It should be emphasised, however, that there is no real intention to deceive the public when these colourful statements about public finance and trade recovery are made. What is aimed at is the stimulation of a confident and even optimistic psychology. It is becoming increasingly clear to economists that what they are dealing with is human nature and when they advocate any course of action they have to bear in mind that they must gauge whether public reactions will be helpful or harmful. The real object of deficit budgeting, for instance, is that the public shall not be depressed by the effect of the excessive taxation which would be necessary to balance the Budget. There is much wisdom in considering the psychological factor, for such consideration is essential to the success of a public financier. The trouble is that just now there is a tendency to pay more attention to the psychological factor, and to leave the realities somewhat obscure; with the result that, the public fear that they are not. getting a true picture; and an atmosphere of scepticism and doubt continues. In any conflict between ballyhoo and reality, reality can be reckoned to prevail, in the long run.