THE NEW DEAL.

Auckland Star, Volume LXIX, Issue 281, 28 November 1938, Page 6

THE NEW DEAL.

learning from mistakes. (To the Editor.) Mr. Savage lias announced t the "New Deal." The Reserve Bank rate of new discounts ha« been raised to 4 per ccnt to give us capital to work on, to attract capital to the bank, and to prevent capital leaving this country. Mr. Savage announces that Mr. Lefeaux doea not understand modern finance. This is very strange. ~ Tiio wicked Mr. Lefeaux seems to l>e carrying out orthodox banking- practice. Surely Mr. Savage will have something to sav on the subject. With tlie Government bank, too. l>oes this mean that we wifl have to continue high interest rates to keep our capital from flying away? A very bad outlook for the new loan renewals. The State is still competing with private capital by lending here at 3J per cent. There seems to be a screw loose somewhere. I am very pleased to see the article by Professor Tocker that it i« quite a normal thing at this time of the year to see our funds so reduced. I was under the impression from the figures published that the reduction is more than has ever occurred in our bi-torv at thw time of the year. Professor Tocker states we um't learn from our lute experiences and must keep our export* and iuuiorts balanced. Surely Profe-sor Tocker docs not suggest that our Finance Minister has Hot been aUvi.-ing us properly. I was under the impression from the variolic statements made bv our Mr. Savage and his Cabinet that Labour made 110 mi-takes and thoroughly understood finanw. I presume that we will I have to finance our new industries through the London financiers if the Reserve Bank discount rates are any indication of the true position. We in our simplicity go to our trade rivals for finance. When is Mr. Savage going to hold that conference and arrange for our export prices to be increased, our interest lowered and our import prices reduced? It is only a few days ago we were informed that all parties would have to get together and do this good work so that we would all be happy again. DEPOSITOR.