A FURTHER STEP

Evening Post, Volume CXXVIII, Issue 12, 14 July 1939, Page 6

A FURTHER STEP

CONTROL OF CREDIT

The fact that the Government's introduction of sterling control and import selection was a further step towards the control of the Dominion's credit and currency was revealed by Mr. C. R. Petrie (Government, Otahuhu). Import restriction, he said, was not a deliberate attempt to save the country from disaster, but was part- of the Government's policy of a planned economy. He declared that the Dominion was| sound financially and economically.! There was more well-being among the people than ever before, financial institutions had ample reserves for development, and every one of them had a healthy balance-sheet for the year ended on March 31 last. "If the members of the Opposition want to know why we introduced sterling control and import selection," said Mr. Petrie, "let me tell them that it is because we have to bring about a more balanced production in this country, we have to keep equilibrium in our trading position, we have to keep faith with our overseas creditors, and we have to protect the standard of living in this country. And, if they like, this step was taken as a further step in the control of credit and currency in this country. The Opposition wants the banks to control the position, but this is the Government's responsibility, and we cannot hand it over to them." The Labour Government, continued, the speaker, was trying to make New Zealand the brighter Britain of the south. There was an agitation because they were going too far and too fast, j The Opposition would like to keepj things as they were for as long as possible. DRASTIC NEED FOR CHANGE. During the last few years there had been a drastic need for a change, and for the well-being of posterity this change was absolutely necessary. Most of the country's trouble that had accumulated in the past was traceable j to unregulated'trading. Keen supervision was needed .to see that the two-way trading ran smoothly and in the best interests of the people. There was no understand|ing between theexportei's and Ihc im-

porters, and, worst still, there was no understanding between the importers who were handling the same lines of goods. They went about their business of buying and selling without considering the effect that this aggregate trading had on the internal trade of the country.

"We have lived beyond our income for many years,'* said Mr. Petrie, "and we have had to borrow in the past consistently to correct the trading position. Those are the debts that are with us" today and which constitute such a heavy burden on our production. A policy of import control was long overdue. By controlling our sterling overseas • intelligently and sensibly we shall not only correct our trading position, but shall become more and more independent of overseas borrowing and dependent on our own resources. To travel along in the old way was simply asking for trouble."