MR. HISLOP AND THE DEMOCRATS.

Auckland Star, Volume LXVI, Issue 213, 9 September 1935, Page 6

MR. HISLOP AND THE DEMOCRATS.

I am afraid Mr. Hifilop is clean bowled. The subject under discussion is tlie similarity or dissimilarity 'between the policy of the British Government and the exchange policy of our Government. Mr. Hislop contended that the policy of our Government ft the opposite, in that, whereas the Britis'h Government keeps sterling up by the use of the Stabilisation Fund, our Government deliberately depreciated our currency. My contention is that the British Government by use of the Stabilisation Fund is wisely and d-eliberately forcing- sterling down. The British Government had forced sterling to such a low level (the British pound was worth just under 12/ in America with both countries off gold) that America had to cut her dollar in two to meet the position. Last September Mr. Chamberlain stated that lie was about to further depreciate sterling, as it was necessary to get below the dollar, and he actually did succeed in doing this for a time, but in so doing he nearly rocked the Continent off gold and had to ease up. Mr. Hislop can make no reply to this at all. Now comes the amusing feature of the whole position. The Democrat party, like ita deceased parent the New Zealand Legion, was conceived and born in opposition to the exchange policy. How well we remember these people pointing to the exchange policy as "dishonest" and "insane" and lauding the policy of Britain as one of "proven soundness" and all the time these wise men, speaking with a knowledge, like that of Mr. Hislop, gained from a lifelong experience, did not even know that Britain was deliberately depreciating her currency. What a wonderful foundation stone for the Democrat party! Xo wonder they cannot state a policy. The party will soon follow its deceased parent into oblivion. W. GRAY.