MASON CITES VARIOUS METHODS OF RECOVERY

"Shall Government Dictate to Business?" was the subject of an address given by Edward S. Mason, associate professor of Economics, at Williams College on Saturday afternoon. He spoke at a conference of representatives of New England colleges held under the auspices of the Williams Liberal Club.

In the course of his address, Dr. Mason considered the breakdown of the free market a cause of the present economic instability. Some economists believe that the solution lies in the restoration of the free market, while others wish to install a new economic order. Considering the beliefs of the first group, the Harvard economist stated that the reduction of the tariff might restore free trade, and a modification of the anti-trust laws might do much to eliminate monopolies. Furthermore, most economists agree that the control of the expansion of credit would aid in effecting economic recovery. However, Dr. Mason felt that not nearly enough could be accomplished in the way of recovery by restoring the free market.

The speaker went on to say that two interesting economic schemes had been developed during the depression. One of these is our own NRA, while the other has appeared in Australia. The first plan is politically feasible for use in this country, it is economically unsound; and that although the second plan is economically sound, it is perhaps not practical in politics. Having stated that relatively little could be done to alleviate the economic distress in this country by the use of such plans as mentioned, Dr. Mason at the same time expressed the belief that we were emerging from the depression.

Dr. Mason concluded that while the NRA has two great disadvantages. It is difficult to say when output is adjusted to demand, and if the codes are to be enforced a much greater governmental bureaucracy would be required. The Australian plan attempts, by governmental action, to lower costs during a depression and to raise costs in time of prosperity. This scheme has been successful in Australia, but may not be suited to application in the U. S.