The Waikato Tiems With which is incorporated The Waikato Argus. SATURDAY, NOVEMBER 1, 1930. ECONOMIC UNREST.

Waikato Times, Volume 108, Issue 18165, 1 November 1930, Page 6

The Waikato Tiems With which is incorporated The Waikato Argus. SATURDAY, NOVEMBER 1, 1930. ECONOMIC UNREST.

The economio troubles of the world are so severe that they are having a disturbing effect on the stability of Governments in several countries. There can he no doubt that the results of the German election were greatly affected by the severe trade depression which has befallen the country. Now we are told that the Republican majority in the United States, which has been in power with short breaks for over sixty years, is threatened. The two issues on which the eleotion is to be- fought are reported to be prohibition and the economic depression- Prohibition .is a standing dish. Even the supporters of prohibition anticipate some loss of seats in the Senate, and the results are such that no one can feel enthusiastic about it. It says very little for the political capacity of the leaders that they have not been able to» bring about local option. It seems to be recognised that some States are in favour of prohibition, while others are opposed to it, and that the attempt to enforce it in the States which dislike it has led to much crime and defiance of the law. The economio depression is a different matter. The Democratic party have always stood theoretically for a lower tariff, though when in power they have done little in that direction. Probably the lobbying was- too strong for them. The latest amendment to the American tariff was put through in spite of the opposition ol' bankers, economists and financial mep. It was prophesied that it would injure the export trade, and the export trade has suffered. Whether it is due to the tariff is not certain, but naturally the tariff is suspected. The Republicans , anticipate a heavy turnover of votes/ and fear that next year the majority in Congress may be lost. The, outlook is so serious that President Hoover has entered the lists, with a defence of his Government against the charge of disposing of valu’able oil lands to favoured interests.

The election, however, will not turn on charges of corruption, but on the depression which has befallen the United States like other countries. There are conditions which may make it more serious there than elsewhereThey have no organised system of relief, and such work, done in a hurry, is often ineffective. Then the timepayment system has been carried to great lengths. American workmen earn high wages, but are not sup'posed to save much. Men who are out of work and without money are likely to vote in unexpected ways. The United States has one great safeguard—there is no room for any party other than the Republicans and the Democrats. It takes so much money to run a Presidential candidate that outside parties find themselves unable to do so. It is reported that there Is some fear of disorders and outbreaks, and American business'houses are reported to have insured their premises and stocks against such risks with Lloyds. Germany and the United States are the two latest victims of the unrest due to economic causes. In Britain there is unrest, but there are constitutional methods of dealing with it. The latest manifestation is an attempt on the part of some of the Conservative Party to displace Mr Baldwin from the leadership. Possibly we are too far from the scene to appreciate the movements, but here it is hard to see what cause there ' is for displacing Mr Baldwin. Those who desire to do so are ardent protectionists. Mr Baldwin is also a protectionist, hut not quite so ardent. He remembers that in 1923 he dissolved on this very question and was badly beaten. Those in revolt have made up their minds that they have the country with them, but they have been equally confident before, and were sorely disappointedThis may well happen again, and if the party quarrel among themselves it is pretty certain to happen. After all the country is not prepared to hand over its destinies to two newspaper lords, who cannot even argue between themselves what they wish to do. The only thing which seems certain is that Lord Rothermere'has a personal vendetta against Mr Baldwin as his brother, Lord Northcliffe, had against Mr Asquith. It has been prophesied that economics would be as important in the twentieth' century as politics were in tiie nineteenth century. Certainly they are the moving force in the world today, though from 1818 to 1825 very much the same interests moved mankind. The authorities' are agreed that while there are many causes for. the fall of prices, the greatest is the deficiency of gold. There is no expectation that the production of gold will increase. Moreover the policy of the United States and of France is such as to lead to hoarding of gold, so that an insufficient slock is made worse by burying it in those two countries. In India also there is a constant hoarding of gold' and of silver. The people are unaccustomed to banks, and hoard whatever money they may have. Obviously it is the business of statesmen and financial men

| to find some substitute for gold which ' will enable the different countries to

conduct exchange operations. Bankers should be able to afford guidance, but they seem unable to get beyond their ordinary routine, and the maintenance of. the gold standard. The return to the gold standard, and stabilisation at 20s to the £ is responsible for much of the unemployment from which Britain has suffered for seven or eight years. It is the cause of the high taxation which prevails in Britain and helps to depress trade. The gold standard has its merits, but should be administered with common sense and judgment. At present the best hope for the world lies in the Bank of International Settlements. If it can arrange exchange between’ the countries which are parties to it, in the same manner as international business is 1 conducted with paper money, it may go far to relieve the world of the blight of falling prices.