POLITICAL FACTORS

Waikato Times, Volume 116, Issue 19452, 17 December 1934, Page 8

POLITICAL FACTORS

“It is impossible to give any clear or decisive answer to the question which are the most important t factors in national development, the political or the economic,” stated Mr T. Buckland at the annual meeting of the Bank of New South Wales in Sydney. “ The history of many countries in recent years has shown clearly how economic instability tends to create political instability, but at the same time political instability, however generated in the first instance, often becomes itself an independent force making the economic situation still worse.

“ This .is without doubt one of the most important factors which diminishes the willingness of many countries to renew or to expand the international' trading connections which have been so important in the past. Fears are aroused by arbitrary control of exchange transactions or by the imposition of moratoria for the benefit of people who have foreign debts to pay, and traders are increasingly x-eluctant to submit themselves to risks of this kind. The most important form Jn which political instability is expressed, however, is undoubtedly the widespread fear of war.

“ Consciously or unconsciously, a strong desire is felt to reduce international trading obligations to a minimum on account of the inconvenience and loss which would be incurred if such obligations were suddenly interrupted by war. It is not too much to say that anyone who sets out to develop a general programme for economic 'recovery must place in the forefront the removal or the diminution of the fear of war. , . .

“It would be a matter for regret if, in despair at the apparently overwhelming difficulties which so far have beset all the efforts for a constructive policy of international relationships, nations generally were to accept the conclusion that there Avas nothing they could do but sAvim Avith the tide and enter the race of competitive armaments, The feeling of security Avhich such a policy Avould' entitle individual nations to enjoy would at the best rest on extremely shaky foundations and its general acceptance would be much more likely to lead to general catastrophe.