FINANCIAL STABILITY

Evening Post, Volume CXX, Issue 126, 23 November 1935, Page 18

FINANCIAL STABILITY

GOVERNMENT UPHELD

Mr. H. F. Toogood, the Nationalist candidate for the Wellington South seat, addressed a large audience at the Newtown School last night. Early in the meeting there were promises of lively spells of interjection, but the enthusaists were given limited scope by the police present. It was a moderately quiet meeting, where a properly lively meeting had been prepared for by all concerned, and the candidate put his points over effectively. When, however, at question time, the police removed an interjector-questioner there was loud disapproval and a number left the meeting in protest. Mr. B. O'Brien presided. The candidate spoke mainly of the success of the Government in maintaining national finances upon a sound basis, notwithstanding that New Zealand had passed through four years of the most severe economic crisis in the world's history. The prime purpose of the policy now put forward by the National Government was to ensure a continuance of sound finance. Admittedly there had been an increase in taxation but mainly that was due to the necessity of providing funds to relieve unemployment; today taxation in that regard was being lightened. With improving conditions the sales tax, which I was an irritating tax. would be removed as soon as possible.

Referring to the development of secondary industry, Mr. Toogood said that he believed that only by that means could unemployment be wiped out in KTew Zealand and true national prosperity be achieved. Any process of inflation would be most dangerous and damaging, particularly to the workers and small investors. The rate of exchange, he believed, should be gradually reduced, but to reduce it quickly would be dangerous in the extreme for it would mean bankruptcy to many traders.

The secret of Labour's source of funds for financing guaranteed prices and other grandiose schemes was out, said Mr. Toogood—paper money, bad money which would drive out good money, bad credit which would drive out good credit. Bank-notes never had and never would create wealth. Ever}' person who deposited money in a bank or the savings bank, who invested in life insurance, in a building society or contributed to a lodge fund, had a vital interest in safeguarding sound money and a sound banking and credit system.