POST-WAR ECONOMY

Wanganui Chronicle, Volume 87, Issue 219, 16 September 1943, Page 4

POST-WAR ECONOMY

INTERNATIONAL PEACE AND SECURITY TALK BY MR. N. B. SPENCER “In Great Britain, America, Canada and Australia a great deal of lime and thought is being given to the devising of a post-war economy which will allow all the nations to live together in peace and prosperity instead of preparations for a new war,’’ said Mr. N. B. Spencer (Auckland), president of the Associated Un am be?s of Commerce of New Zealand, in a talk on post-war problems at the annual meeting last night of the Wanganui Chamber of Commerce.

The president, Mr. C. S. Jeffs, said that as a memoer cd tne Dominion Executive over i.ie past lew montns, he was privileged tu know the vast amount oi worn being accomplished in Wellington. They owed a great debt of gratitude to Mr. Spencex wr his efforts on behalf oi all chambers in New Zealand.

Mr. Spencer said he was interested in post-war prooiems as a ousmess-

man who was anxious to obtain a lead from what was being done in other countries. Great Britain and otiier countries were already actively engaged in working out what snouiu be aimed at alter the war.

Every scheme lor post-war economy had as its basis that imports and exports must balance, otherwise there would be chaos, Mr. Spencer added. After the previous war it was found that with sievv technique and the harnessing of power manufacturers were able to produce far more goods than were required for internal consumption. This problem was accentuated in the United "States, which, in order to help with a solution of unemployment problems, exported as mucn as possible, but raised high tariffs to discourage imports from other countries as much as possible, such a method of meeting these problems, adopted by various countries, was one of the causes which led to the present war. While those countries which exported large quantities of goods solved their own unemployment problems, the situation became more difficult in the countries to which the goods were exported. This state of affairs, said Mr. Spencer, led to countries fighting among themselves and raising tariffs. Other nations had no adequate markets for their products and some couid not obtain raw materials. Such problems 'helped to cause the unrest during the period between the two wars. As an example, Mr. Spencer quoted shoes which Japan was able to land in New Zealand exclusive of Customs duties, for 3s and 4s a pair, much cheaper than the cost for which similar articles could be manufactured in this country. Such conditions, taken generally, had a tendency to reduce the standard of living in many countries and caused a lack of purchasing power. As a result the world had the spectacle of food and other articles being dumped and destroyed while people were in need, simply because they did not have the means with which to purchase these goods.

“We must find some way of working out international and national post-war economy which will avoid mistakes made after the last war,” Mr. Spencer added. Many trade groups in Britain had been asked to set out their ideas as to what should be done in bringing about effective economy. When in England, at the start of the present war, said Mr. Spencer, he met the president and secretary of the London Chamber of Commerce, who showed him a complete plan they had worked out for the control of international trade. The speaker added that he would like to see the Government in New Zealand use similar methods to those adopted in England and form a committee of the trade groups interested to make suggestions or recommendations as to what should be done in this country in order that the Dominion’s internal economy would fit in with what was being done overseas. The bulletins issued periodically by the Federated Chambers of Commerce of Great Britain and which were distributed among all chambers in New Zealand, contained much useful information on post-war reconstruction.

From a study of the various points put forward in England, said Mr. Spencer, he had found that they contained many points which were in common. One aspect of the question was universally agreed on—if a nation wished to export she must import. Imports and exports must be properly balanced. The setting up of a clearing house for international exchange was also very rfecessary. The English and American schemes for post-war economy were quite different in principles, but when it came down to practical results the} 7 did not differ very much. The purchasing power of the people was another important question which must always he kept in mind and in New Zealand the Reserve Bank had a formula for working this out exactly. When more money was available than goods, as at present, stabilisation of prices was necessary. Mr. Spencer also advocated a world fixation of prices of the most important foodstuffs and war materials. Fixed prices after the war would help more than anything to stabilise industry in all parts of the world. Fluctuation in the prices of raw materials and foodstuffs had been one of the greatest causes of alternating boons and slumps. “All these schemes and suggestions for a post-war economy are but means to an end,” Mr. Spencer added. “It is generally agreed that the end to be aimed at is a general raising o' the standard of Jiving throughout the world. “We want to raise the lowest to the level of the highest and not drag the highest to the level of the lowest.”