"SOUNDEST POLICY"

Evening Post, Volume CXX, Issue 6, 6 July 1935, Page 11

"SOUNDEST POLICY"

WORK OF GOVERNMENT

MR. HAMILTON'S SURVEY

. (By Telegraph—Press Association.) ; OAMARU," July 5. The Hon. Adam Hamilton, Post-master-General, addressed electors of Oamaru tonight in the Opera House. Mr. Hamilton, who was introduced by the Mayor, Mr. M. F. Cooney, gave an account of the stewardship of the Government during the last three or four years; Before proceeding to review the legislative enactments of the Government, Mr. Hamilton reminded the audience of the conditions prevailing prior to the formation of the Coalition and the phenomenal fall in prices which affected adversely every section of the community. Out of these' difficulties two pressing problems arose—one to restore export prices to a higher level, and the other to reduce internal costs to a lower level. He contended that the action taken by the Government was the soundest, and the best results had been achieved. To prove this Mr. Hamilton dealt with savings effected in the interest bill by the Government's action, pointing out that while the action of the Government in reducing rates of interest was considered by some to be somewhat severe, it had to be remembered that the preservation of a lender's capital was of more concern to him than the amount he might receive by way of interest. Steps were taken to reduce interest on State loans, local body debentures, mortgages, and bank overdrafts, the total adjustments being approximately £4,000,0000. THE EXCHANGE RATE. Mr. Hamilton referred to the controversial subject of the raising of the rate of exchange, the. proper term for which .was depreciation of currency. It had been in force some time, without any serious misgiving and, though there were some disadvantages resulting from the existing rate of exchange, these were far outweighed by its universal jdstness, fairness, and advantages. .It Was a much . sounder method of. raising the export price level than the guaranteed prices to farmers- advocated by,. the Labour Party. ' "'"-', He further dealt" with the main functions of the Reserve Bank, which' took over accumulated! London credits amounting to £20,000,000. Treasury, bills' amounting to from £24,000,000 to £25,000,000 owing by the Government to New Zealand banks were liquidated by the Reserve Bank with a consequent enormous saving to the Govern,ment. Today the Reserve Banlf was a very valuable national asset. Mr. Hamilton was given a very attentive hearing and was. accorded a hearty vote of thanks.