NARROW NATIONAL ECONOMICS

Waikato Times, Volume 118, Issue 19661, 22 August 1935, Page 6

NARROW NATIONAL ECONOMICS

The President of the International Chamber of Commerce, M. Fcntener van Vlissingen, speaking at the annual conference in Paris, uliowed how a complete lack of appreciation of the economic consequences unavoidably following the war had led all nations to adopt policies and trade practices which had brought the world to its present highly unsatisfactory condition, and stated that the situation was worse than two years ago. All the nations were struggling for more prosperity, and some of them were making bold and interesting experiments. But of concerted international action there was not yet any question, and the measures everyone was taking on his own behalf in many instances clashed with those of his neighbour. Could progress ever be made if in some countries premiums were given to restrict the production of foodstuffs were they could be produced in favourable circumstances, while in other countries where the circumstances were much less favourable premiums were paid to stimulate the production of the same foodstuffs; or if one nation paid subsidies to restrict tonnage while, at the same time, others nations provided public funds for the building of new ships? Of what use was it if some countries made sacrifices to further adjustments of their costs of production to fallen prices by a process of deflation while, at the same time, other countries provoked new price disturbances by manipulating or devaluating their currencies? While monetary instability lasted prices would remain depressed. There could be no rebirth of the spirit of enterprise among business men as long as they came up against Government interference at every step.