Defence of the Pacific

Dominion, Volume 27, Issue 19, 17 October 1933, Page 11

Defence of the Pacific

■Sir, —The recent decision of the Government to strengthen our defences must be welcomed by all those who realise that our youngest returned soldier with actual experience of war must now be at least 35 years old. and that the best soldiers in the world give much better return for the cost of their training when they have serviceable equipment. Some declare that Japan is not interested in this quarter of the globe, but the position is that Japan must find some outlet for her population. To expand into Asia means conflict with the powerful forces of Russia. Australia and New Zealand advertise their natural wealth widely, and their weak defences are probably well known, so that an argument arising out of tariff barriers to Japanese trade may involve us in a war in which we may literally have to defend our homes.

Apart from tariff barriers, there is a way in which cheap Japanese goods may lose their appeal. The public, through lack of spending power, art forced to buy in the cheapest market, whereas with morg money to spend, they would be able to put into practice those patriotic urges to buy British goods, and keep British trade alive. After the war, Germany and France found themselves short of money, and inflated their currencies relative to their gold reserves. This suited their internal trade, but adversely raised the foreign exchanges. Here in New Zealand we have an artificial exchange limiting imports, but we are denied the internal advantages of a corresponding inflation relative to our gold reserves. Why cannot the Government force the banks to print notes until the currency is inflated to correspond ■with the exchange rate? By restoring salary cuts this extra money could go into circulation immediately. We could cheerfully pay higher prices for butter, we could pay external interest charges with better grace, and could also pay for those little “extras” that kept so many more people in employment before the “cuts.” —I am, etc., LOOK OUT. Wellington. October 14.