INSULATION POLICY
London Comment On New N.Z. Regulations
“FRIENDLY WARNING” TO
MR. SAVAGE
By Telegraph.—Press Aficu.—Copy right.
(Received December 10, 1.40 a.m.)
LONDON, December 9.
‘‘Mr. Savage's latest utterances show that the import restrictions are not an emergency device to protect sterling funds till'the danger of over-importing is removed, but a permanent expression of the Government’s insulation plan.” states the ‘‘Financial News.” “Nevertheless, insulation is impossible, specially in New Zealand, which is a specialized producer selling its output abroad. If incomes are kept up by lavish spending, depreciation of the currency is inevitable when external assets are used up, while an endeavour to postpone the evil day by subsidization of exports will be an enormous strain on the national finances which ultimately will be likely to produce monetary' inflation accentuating the depreciation of the currency and reducing the standard of living by making imports dearer and increasing the internal burden of the external debt charges. . “This is elementary economics which is not a disservice to point out to Mr. Savage. We trust Mr. Savage will not insulate himself from friendly warn-
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Bibliographic details
Dominion, Volume 32, Issue 66, 10 December 1938, Page 15
Word Count
181INSULATION POLICY Dominion, Volume 32, Issue 66, 10 December 1938, Page 15
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