ECONOMIC RECOVERY.

Manawatu Standard, Volume LII, Issue 52, 1 February 1932, Page 6

ECONOMIC RECOVERY.

; PROFESSOR’S SUGGESTIONS. CARE OF THE PRIMARY PRODUCER. ' Pei Press Association. - WELLINGTON, Jan. 31. “It is more important for ‘New Zealand than-it is for any other country in the’ world to maintain the position and strength of the primary producer,” said Dr. D. B. Copland, Prpfessor of Commerce at Melbourne University, in an address on Saturday evening on the economic situation of the Dominion. N : • “Any sacrifice that will do that is worth while. If it can be done by reducing costs do it that way, but you can do it by .a double policy of putting up the export price level, and lowering your costs.” _ , , Professor Copland said that, he rejected without hesitation a policy of straight-out deflation or a policy which proceeded in the vain -hope of reducing all prices and costs by 40 per. cent, or more. New Zealand would need men of stout hearts, great courage and long lives to see such a policy through. One of its most important effects would be on the assets, securities, and liabilities of financial institutions, to sustain all of which would be a most difficult problem. , Professor Copland put forward a middle course, one involving a high exchange rate and one in which costs were attacked at the same time that the 'farmer’s income would be raised and -the loss of income spread over the whole community. The middle course would avoid deflation,- would keep up the price level and give a foundation for recovery. A mere monetary adjustment of costs was insufficient, he added..