CURRENCY AND CREDIT

Ashburton Guardian, Volume 53, Issue 255, 9 August 1933, Page 8

CURRENCY AND CREDIT

THE VIEWPOINT OF LABOUR. .Per Press Association') WELLINGTON, August 8. When the proposal that the Government- should immedriately adopt a policy making for higher wages and shorter hours was placed before the Minister of Labour (the Hon. A. Hamilton) to-day by a deputation representing the New Zealand Alliance of Labour, Mr Roberts said that the Alliance wanted to draw the Minister's attention to the failure of the policy pursued by the Government and the urgent necessity of altering that policv as far, as wages and hours were concerned. If the Government did not alter its policy there was a distinct danger of unemployment becoming worse, price levels being further lowered and New Zealand being landed into national bankruptcy. The Alliance of Labour was of opinion that the Government must control currency and credit. Mr Roberts declared there was no necessity for raising an internal or external loan. The Govern-, ment could issue Treasury notes to the amount necessary to give purchasing or consuming power to the whole of the people of Now Zealand. Unless purchasing power were increased it was impossible ■ either to raise price levels or restore prosperity. The Government’s deflationary policy had been a failure. Controlled inflation must take the place of imposed deflation. The Alliance believed a mistake had been made in increasing the exchange rate. That was inflation to assist one section of the community. Replying, the Minister said: “For myself I have great difficulty in making myself believe this country can control itself internally without being affected by conditions in the outside world. I -would also have great difficulty in making myself believe we can get hack to the- 1931 level. I admit things have not been working out quite rightly these last few years. Yo'a might he able to say what the cause for that is, hut what is the cure is not just so easily stated. I am hound to say it appears to me that in some of your statements you are mixing up cause and effect.” Mr Hamilton said he believed there was a good deal that could be said for control of currency and credit, but lie was bound to , say it would be difficult not to associate the department’s policy with inflation. Air Roberts: It is controlled inflation. I admitted that.