CORRESPONDENTS' VIEWS.

Auckland Star, Volume LXX, Issue 305, 27 December 1939, Page 6

CORRESPONDENTS' VIEWS.

CASH AND CARRY.

(To the Editor.)

This new ideology of caeh and cany springing from America, who found frcna ker experience in the last war that it was not a business proposition to manufacture goods and not be paid for thenv eeems to have permeated Mr. Lee'e mind. Now to pay cash for one's poods is aa excellent and honeet idea, but as tbo supply of cash to debt is 9 to 1, it cm be easily seen that what we are likely to carry won't amount to much. 'Vp* are constantly told that outside New Zealand our notes are worthless, -which I believe is a. fact. Britain wante our I soldiers and we are willing to supply I them. Soldiers, as we all know, human beings and require food. clotiet and weapons. The powers that control finance in London recently told us that they will grant us no "more sterliu* credits, even ae a debt, and no one wfll accept our Xew Zealand, currency. May I ask how can Xew Zealand be expected to provide soldiers if they can"t be paid for? It is not a question of politics or sentiment but one of cold, hard J>winess in which money is a potent factor Surely if Britain wants our men. aa she does, and -we are ready to give them, as we are, ehe seems to be cutting off her nose to epite lier face. The people of Xew Zealand, who have to live as ■well as maintain that army, cannot do the job solely on ite export trade. In addition to the ordinary debt service of £11.000,000, we have now to pay as extra £3,000,000 off the capital debtf Wβ have to face falling -production with a. rising price level, for which, in spite of its good intentions, we must hold the Government responsible. When anj Xew Zealand Government and the business world realise that our income never does and never can pay for the cost of production, then, and not until thai, will we be able to stop saying, ''Where is the money to come from?" H. S. WTNTHKOP.