NEW ZEALAND MONEY

Evening Post, Volume CXXVI, Issue 151, 23 December 1938, Page 8

NEW ZEALAND MONEY

(To the Editor.)

Sir, —I, like many business men, at first resented the Government regulations controlling imports and exchange. After a study of the position from every angle and considering the alternatives that the Government had, I am convinced that it has chosen the wisest course and those people who think otherwise will eventually agree with the Government's action and with amazement, at the statesmanlike way in which it has grappled with the position. The object of this letter is to appeal to those who have sent New Zealand earned money abroad for safety sake (despite the Prime Minister's assurances and his word of honour, which all will agree count), to bring the money back again so that the people will not have to go short.

New Zealand's standard of living is governed by its imports. I believe some fifteen to twenty millions has left this country during the last three years and this money has to be paid for by New Zealand exports of apples, wool, dairy produce, etc., and the people go short. If I send £1000 to Sydney, it has to come out of our exports and the people have to go short by £1000. I feel sure that the motives that induced the people to transfer their money to Australia were not unpatriotic, but they simply did not know that the effect would be that the people would go short by their action and ability of the trading banks to lend, curtailed. The Government's action, I am convinced, is right and if the policy is allowed to continue for some years, I have a vision that not only will it have paid off most of the external loans but the Dominion will eventually be a creditor country, as the land is so fertile and the resources so great. It will be able to help raise the standard of living in other countries, thereby contributing to the peace of the world.

I believe that we should stop exporting our gold and build up a reserve so that New Zealand currency will be exchangeable throughout the world. Gold is the only real capital that can be exported and we are only contributing to the reserves of other countries by doing so. The financial standing of New Zealand would be greatly

enhanced if we build up a gold reserve. I am certain money is safer in New Zealand and America than in any other country in the. world and I think an appeal should be made to the people to help by bringing the money back while they are able to. Be very sure, if the money is brought back from Australia the Australian people will go short and they will be quicker to stop the flight of capital than New Zealand and that is why I say—"While you are able to." —I am, etc..

MERCHANT. Palmerston North. Dec. 21, 1938.