MORE SLUMPS.

Auckland Star, Volume LXIX, Issue 177, 29 July 1938, Page 11

MORE SLUMPS.

EMULATION POLICY.

FORMER PREMIER'S VIEW.

"I THUTK XT IS SIMPLY BTJWK."

(ißjr Telegraph.—Parliamentary Reporter.) WELLINGTON, this day.

The opinion that .there would be slumps in the future no matter who was Prime Minister was expressed by Mr. G. W. Forbes (National, Hurunui)

in the House of Representatives yesterday. He quoted the criticism of Mr. Savage on the report of the Reserve Bank, and said that the bank's opinion was the view of the leading economists of the world.

In reply to an interjection by Mr. W. J. Lyon (Government, Waitemata), Mr. Forbes said that during the depression period it was impossible to borrow in London, while in New Zealand the people were hard put to it to meet their engagements. The local consumption of wool produced in New Zealand was only three per cent, butter 20 per cent and lamb eight per cent. The remainder of New Zealand's production had to be sold in the world's markets and Great Britain was unable during the depression to purchase the same quantities as formerly. Mr. W. J. Poison (National, Stratford) : You do not believe in an insulation policy? Mr. Forbes: I think it ia simply bunk. Geneva Cable. Mr. Forbes quoted from a recent cable from Geneva predicting another depression, and expressed the hope that the prediction would not be justified. "But any Government that goes on like the ostrich hiding its head in the sand thinking its whole body is covered and taking. no notice of the warning posts along the route will land itself and this country in greater difficulties than ever yet experienced," he added. Mr.-Forbes reminded the Government that lib other country had ever been able to insulate itself effectively. Some countries had tried it and had suffered damage in the process. The Government had been warned by the Reserve Bank against undue spending on public works, but it thought that it knew better than the Reserve Bank and better than any other country. "The Government says, 'They can't teach us anything, we know it all.' Is that an attitude that invites the confidence of the people?" asked Mr. Forbes. Mr. Poison: Children playing with dynamite. London Stocks. Referring to the fall in London stocks, Mr. Forbes said that according to the Prime Minister and the Minister of Finance, some evil group of financiers was doing its best to destroy New Zealand's credit. That, he said, was what usually occurred when anything was said that was unfavourable to the present Government. There-was always a "whispering campaign" when the wind was not blowing favourably. The Government should consider that if those on the spot were uneasy regarding its financial policy, what must be the feelings of those people not living in. Near Zealand who had invested money here. In saying that he would add that he did not doubt the honestfy of the Government, and he did not believe for a moment that it would repudiate or default in Its obligations overseas, but the question was whether it would be able to carry on under its present policy. The financial position should be set out in such a way that the ordinary man could understand? at present he was bewildered. In connection with the Budget reference to State Advances Corporation stock, Mr. Forbes used the word "juggling," explaining that he did not mean that there was anything improper. The Minister of Finance, Mr. Nash: What does juggling mean? Mr. Forbes: It means keeping three or four balls in the iir at the same time. (Laughter.) 4 •:■. v •&& An Opposition .member: Bouncing the ball., ■} '*"•' •-, "-'.iZ- v- : v ■ -

Mr. Forte*?-. ,1 »»'$ B *y bouncing the ball, because 1 iiffllr the Prime Minister is a Uttae'sen'sitWe about that.*-