VIOLENT INFLATION

Evening Post, Volume CXXI, Issue 83, 7 April 1936, Page 16

VIOLENT INFLATION

MR. ENDEAN'S PREDICTION

Mr. W. P. Endean (Nationalist, ParHell) said that the Bill would lead to the most violent inflation before many months went by. The Prime Minister had said that he would show the way to the world, but Mr. Endean said that in his opinion the Prime Minister would lead New Zealand into bankruptcy. It had been said that the ship of state was on the rocks; but it was far from it. The ship had been handed over to the Prime Minister in good condition. One effect of the Bill would be that the Government would not be concerned whether they secured 6d a pound for butterfat or 4d a pound for wool.

Under the Bill they could issue up to £25,000,000, atid the bubble would then be burst. New' Zealand was bound up with Britain, and what would be the effect of the marketing of produce in Britain if the principles of the Bill were put into operation?

It seemed that the standard of living in New Zealand was not appreciated. The Dominion was to be made the laboratory for ' social experiments. What would be the next move of the Government? A good deal had been said about the "Kelly Gang," but no one seemed to know who they were. When he made that reference, did not the Prime Minister have capitalism in mind—the man or woman who had £200 or £300 invested in bonds? Mr. D. McDougall (Independent, Mataura) said that the Government had been criticised for rushing the Bill through the House, but the guarantee to the Bank of New Zealand was passed in nine hours in 1894. Mr. Broadfoot: That was done to save an institution. Mr. McDougall did not agree that the Reserve Bank should have been established at all. New Zealand had sufficient interest in the Bank of New Zealand to make it a State institution.