NEW ZEALAND'S FINANCE

Press, Volume LXXI, Issue 21646, 3 December 1935, Page 17

NEW ZEALAND'S FINANCE

TO THB EDrrofe OP THE. PRESS. Sir,—l see that some New Zealand securities in London are falling in value. II people in London choose to get windy over the election of a Labour Government here that is their lookout. Those who sell their securities will only burn their own fingers. The Reserve Bank note will maintain its present value in London until its value ia altered by law by the Labour Government here. It is not realised in every quarter in London that New Zealand finance is sound, and internally can be kept free from the shocks of London financial movements. This happy independence for New Zealand finance will continue as long as New Zealand does not import more goods than she can pay for with the balance left on exports after the usual London interest payments, etc., are made. . , The only international financial) snag the tabour Government has to keep under the telescope is an "adverse" overseas trade balance. It is • point that requires Immediate supervilion and control, an there has been « swing in trade, causing excess imports tm* year. 9 removal of fee exchange rate ia a matter ot indifference really. Its removal will only mean that the Labour Government will have to work out the guaranteed price from the sterling Basis instead of the present! Reserve Bank note value basis. The guaranteed price and minimum wage policy of the Government will remove #ll anomalies caused by the raising of. the However, if « majority

of people are prejudiced against the exchange rate, let it be removed. I expect most of your monetary reform correspondents feel an unalloyed satisfaction over the election result. The people's independence of thought and confident vote, as well as their discipline through the campaign and at the poll are a world example. Let us hope that no- influence of war will interfere with "the full influence of New Zealand's Labour Government on civilisation.—Yours, etc., KAYE HOE. December 2, 1935.