FINANCIAL POLICY OF NEW ZEALAND

Dominion, Volume 29, Issue 99, 21 January 1936, Page 9

FINANCIAL POLICY OF NEW ZEALAND

“Machiavellian Ingenuity” COMMENT IN ENGLISH JOURNAL By Telegraph.—Press Assn.—Copyright (Received January 20, 11.45 p.m.) London, January 20. ’Tlie “Financial News" withdraws its former criticism of the New Zealand Government’s announcement that, notwithstanding inllationary expenditure on which it intended to embark, it would raise the exchange value of the pound to parity with .sterling. The paper says: “We must confess that we did less than justice to the intelligence and shrewdness of the Goveriiment’s financial advisers, whoever they be. It is now evident that their announcement of a contradictory programme was inspired by Machiavellian ingenuity, since it not only saved New Zealand from (he consequences of a flight of capital, but' actually led to a strengthening of the technical position of tlie pound.” It alludes to holders hastening to surrender sterling assets and says: “It was an astute move on the part of the Labour Government. It will be more astute if tlie announcement is not followed by action, for appreciation of the pound would inflict hardship on most classes and will probably never occur.Meanwhile the Government enjoys the benefit of the absence of a flight of capital, a strong technical position and ample monetary resources.” The writer expresses the opinion that tlie British Labour Party would not be able to follow New Zealand’s example in the event of victory at the polls. “Such an ingenious method can lie applied . only once. The public is not likely a second time to accept an announcement of proposed revaluation nt its face value.”