MR NASH AND THE TEA TRADE

Press, Volume LXXIII, Issue 21987, 11 January 1937, Page 4

MR NASH AND THE TEA TRADE

70 TUB BDITOB OF TBI PBXSS. Sir,—Mr Strachan says the Labour party will fall over,collective bargaining and price fixing. He should know that modern productive capacity can quickly flood any unfilled market. This means that a market where demand is great and prices high will be quickly over-supplied and suffer a fall in prices. Price fixing is a necessity under modern productive efficiency. Both the national and the international economic systems will not function efficiently nor maintain stability without price fixing. Currency stabilisation is a branch of price control. If the State has to guarantee exporters a price that will give them a fair profit, the State must have a controlling voice in the purchasing price and the selling methods. What some people want is a big subsidy without having their affairs scrutinised. New Zealand currency will not be diluted until there is an excess of money in the possession of the general public. Until enough money has been distributed to maintain the'■: desired standard of living, the increase pf money is "correct expansion," , apt "dilution." , V, When dealing with a country which cannot accept payment in goods, New Zealand has the right tp contract with

that country that the sterling credit must not be used as a bill on Great Britain for gold.—Yours, etc., KAYE HOE. January 7, 1937.