ON TWO LINES.

Ashburton Guardian, Volume 61, Issue 17, 31 October 1940, Page 2

ON TWO LINES.

STEPS TOWARD STABILITY

THE ECONOMIC POSITION,

(Per Press Association). WELLINGTON, October 30.

Impressions formed as a result of his association as a membei\ of the committee of the Economic Stabilisation Conference was given to the Dominion dairy conference to-day by Mr W. W. Mulholland, Dominion president of the New Zealand Farmers’ Unioti and a member of the Dairy Industry Council.

“Probably the most significant thing about the report Avas the fact that 14 besides the chairman, seven of them representing Labour Union organisations, signed tbeir names to the report pointing out the grave danger to New Zealand stability from any further issue of Reserve Bank credit,” said Mr Mulholland. From statements made to tine committee, Mr Mulholland continued, it seemed that the obvious correction lay along two lines. The shortage of goods should be made good as far as possible and that meant undoubtedly that in the industries affected longer holies should be worked. It had also been astonishing for him to find that labour for secondary industry wak actually decreasing .and AA-as in short supply when there were still thousands of men on Government schemes, even our sustenance.

On top of the actual shortage of goods there Avas an excess of purchasing poAver, Mr Mulholland said. It was evident to him that it Avas impossible to. finance the- present scale of Government expenditure for purely domestic purposes, arid to finance the war effort to the extent the country should be doing by means of sound finance. There Avas unanimous agreement by the committee in this respect to recommend the Government to examine the position AA'ith a Auew to sealing down, its domestic expenditure. The impression left on. his mind, said Mr Mulholland, Avas that Avhile it might be possible, and it Avas a. mighty big “might” to finance this year’s Budget, on sound financial lines, it AA'ould be utterly impossible to finance a similar Budget again .without- using many more millions from the Reserve Bank.