N.Z. FINANCES.

Auckland Star, Volume LXIX, Issue 285, 2 December 1938, Page 9

N.Z. FINANCES.

LABOUR OPINION.

Moderate Temporarily Policy Of Expansion.

London Balances

United Press Association.—Copyright,

LOX DO.N , December I. The "Daily Herald" (Labour), in 7,7 I 2 abatement of the New Zealand exchange fl„rrv, which provoked an increase in the discount ' savs that on the balance of the 'esZlil.,," <lefi, ' it 1 ot ' *7,000,000 to jtH,000,0()0 ls hkely, but the ♦om.nion s Lon«l.,n funds have fallen hv nearly £ 12.000,000.

The ditfprcnce of £».(>o<> (H)0 to I '.fMMUMMj is the inp-i-nin* ~f *\ . llu ot the amount ' '"I" 1 " 1 from \ ew /,. a |. tn ,| 111 the year before the Inst j.,.|,eral eli'i't inn.

The paper surest s that if the i" <" he built up '"..lly it is worth considering whether advance measures could be taken to meet the tall of the export surplus or the flight of capital.

It it becomes substantial the fallin"--Nport surplus mi-l.t be countered by lusher taritts on luxuries or by suitable 'levalnat ion. which should " not be regarded as a disaster but as a natural economic adjustment.

Keal flight of ca pit a I could l.e met by a refusal to grant foreign exchange tor the purpose. 1„ tin- meantime proliahly it. would lie wise to moderate temporarily the expansionist policy, particularly in regard to public work's, and loans from the Reserve Hank.