CRITICS WITHDRAW

Ashburton Guardian, Volume 56, Issue 84, 21 January 1936, Page 10

CRITICS WITHDRAW

LABOUR AND EXCHANGE. NEW ZEALAND GOVERNMENT. (United Press Association—Copyright.) LONDON, January 20. The “Financial News” withdraws its former criticism of the New Zealand Government’s announcement that notwithstanding the inflationary expenditure on which it intended to embark it would raise the exchange vaiue of the New Zealand pound to parity with sterling. The paper says that it must confess that it did less than justice to the intelligence and shrewdness of the Government’s financial advisers, whoever they might be. It is now evident that! the announcement of the contradictory! programme was inspired by Machiavel-j Han ingenuity, since it not only saved! New Zealand from the consequences oi| a flight of capital, but actually led toj a strengthening of the technical posi-j tion of the pound. The article alludes! to holders hastening to surrendeij sterling assets, and says it was an| astute move on the part of the Labour! Government. . f It will be more astute if the an-l ncuncement is not followed, by action,! for the appreciation of the New Zealand! pound would inflict- hardship on most! classes, and will probably never occur.! Meanwhile the Government enjoys the! benefit of the absence of a flight of! capital, a strong technical position, and! ample monetary resources. « | The writer expresses the opinion thatl the British Labour Party would not be able to follow the example of New Zealand in the event of victory at the! polls. An ingenious method can only! be applied once. The public is uotj likelv a second time to accept an announcement of proposed revaluation atj its face value. J