MORE MONEY IF NECESSARY

Press, Volume LXXII, Issue 21863, 17 August 1936, Page 10

MORE MONEY IF NECESSARY

Minister Refers To Duty of State • NEEDS FOR HOUSING SCHEME (press association telegram.) AUCKLAND, August 16. “There is no reason to suppose that in the ordinary course, the State will necessarily have to put more money into circulation because higher wages are now ruling through industry, remarked the Minister for Finance, the Hon. W. Nash, when asked what steps the Government considered desirable to deal with the situation. Mr Nash explained that while it might be necessary to issue more mpney when the Government’s housing scheme was well launched, the money required by industry would automatically be found by it Against higher wages it would have increased returns. On the other hand if it found that industry had expanded to the point where more actual money was into circulation, then it was the duty of the State to provide it. The posi tion really was that when there was unused raw material and unemployed labour, the two were considered in relation. If exchange—that was money and credit —was not sufficient tobrujb into being finished products, then it was the duty of the Government to create what was necessary to meet the demand. ... . , ■ Asked about reports published in London recently that there had hcen a flight of investment funds from New Zealand, consequent on the Government's legislation, Mr Nash “There is nothing to suggest that there is very much in that,” he said. Of course, there are always funds held for investment in the countries that give them the best return The industrial situation in Australia at this period of the year usually encourages investment there, but we have the reports of such authorities as J. B. Were and Company that no abnormal amount of interest money is going to Australia fropi New Zealand. In point of fact, there is more Australian money in New ZGHlsnd, tiisn New Zcsland money in Australia.’