NEW ZEALAND'S CURRENCY

Press, Volume LXX, Issue 21087, 12 February 1934, Page 8

NEW ZEALAND'S CURRENCY

Policy Criticised VIEWS OF SIR JOHN SANDEMAN ALLEN "I am very sorry that New Zealand has linked itself with Australia in tinkering with its currency. This step may have been forced upon the Dominion by Australian policy, but I think it must prove injurious in the long run, declared Sir John Sandeman Allen, a distinguished English parliamentarian, who with his wife arrived in Christchurch yesterday morning, in an interview with "The Press." Sir John expressed the view that the step taken by New Zealand might have temporary advantages, but they would be outweighed by the disadvantages that would result later.

"You might just as well take an English ten-shilling note, paint it green, and call it a pound, and say that you have got twice as much as you had before," said Sir John "But it is still only worth 10s. Money after all represents only goods and services, and nothing else, and it is there that Mr Roosevelt is going to find trouble eventuflly The result of such a step is that wages and everything else go up in conformity, and it is only during the neriod preceding their finding the new level that benefits accrue. Afterwards things are just 'as you were.' "I hope that New Zealand will not be so mad as to listen for five minutes to the - ridiculous credit schemes that arc being put forward in certain irresponsible quarters. However, wild cat schemes may catch people in times of depression, but seldom in normal times. I think that they are not likely to appeal to many during a period of what is recognised to be recovery."

Work for the Empire

Sir John has devoted himself to public life and particularly to work affecting the Empire as a whole since his retirement from business in 1920. He has been Conservative member of Parliament for West Derby Division, Liverpool, since 1924.' He is president of the International Parliamentary Commercial Conference, chairman of the Commercial Committee of the House of Commons, and a member of the council of the International Chambers of Commerce. Besides being vice-president of the Royal Empire Society, he is a former chairman of that organisation. He is honorary treasurer of the Mercantile Marine Service Association. He attended the World Economic Conference and its preparatory conferences as a member of the British delegation. He was knighted for his political and Imperial and international services in 1925.

Although his visit to the DommI ions is unofficial Sir John has been asked to explain to the Governments and interested organisations the financial and economic developments in Great Britain in the last few years. "Such a position has its advantages both for my Government and for myself," Sir John told a reporter. "I have much greater freedom than I would have as an official emissary, while the Government can repudiate me if it so desires."

Loyalty of New Zealand

He has already visited East and South Africa and Australia on his present trip, studying economic and political conditions in each country. He has had many conversations with New Zealand Cabinet Ministers, and visited the Waitangi hui with the Government party. "New Zealand is a beautiful country and the people are very pleasant and very loyal," he told the reporter, adding that he had been treated with the utmost courtesy by the New Zealand railway authorities and other transport bodies. The visitors' stay in the South Island will be curtailed, as Sir John and Lady Allen have been invited to he the guests of the GovernorGeneral and Lady Bledisloe at Government House. They will leave for Wellington to-morrow week. A short visit to Dunedin is included in their southern itinerary. Lady Allen is also a keen Empire worker, and has given addresses to women's organisations in Africa and Australia.

Quotas Opposed on Imperial Grounds

Sir John referred to his opposition to the quota system, expressed in addresses in the North Island. He remarked that he thought it would be a serious mistake to limit New Zealand's exports of dairy produce, on which its prosperity largely depended, because of its serious Imperial repercussions. It was in the interests of Great Britain to encourage New Zealand's exports so that she would have no difficulty in meeting her obligations. Among other things it was hoped also that New Zealand in the future would be able to play its part in Empire migration, and this could not be unless every encouragement was given the Dominion's industries.

"Quotas are much more dangerous than tariffs because they cut directly at the roots of liberty of trade, and interfere with private enterprise to an extent that is odious to every sound business man," declared Sir John. He said that he would use what influence he possessed against the quota principle, but it was possible that he would be in a minority. Speaking of Imperial trade relations Sir John said that while trade within the Empire must be the bulwark of each country it must be remembered that only 48 per cent, of Britain's trade was within the Empire, and she had to give full consideration to the other 52 per cent. International Situation Sir John is a keen student of international relations, and his views on the European situation are interesting. "I do not think that anything in Europe at present menaces peace except the recent unrest in France. But it must be remembered that France is still on the gold standard and the cost of living has become terribly high, while public feeling has been agitated by the recent -bank scandal. I do not think it points to any real danger, and there does not appear to be anything else in the international situation apart from the usual trouble—that the boundaries of European countries are all wrong —to threaten peace.