N.Z. AT THE CROSS-ROADS.

Evening Star, Issue 23322, 19 July 1939, Page 16

N.Z. AT THE CROSS-ROADS.

TO THE EDITOR. Sir, —We have now reached a stage in our economic affairs when the most ardent supporters of the Government must realise that the Government’s major error resides in the fact that it has attempted to do that which is manifestly impossible—to give econofnic security within the framework of a financial system which makes for progressive insecurity. The attitude of the London financiers demonstrates the impotence Governments have to control the destiny of their peoples when, wedded to orthodox finance. It matters not at this stage whether Mr Nash is successful or not in his London mission; we know just exactly where we stand in regard to self-government, and not until the ipeoplo learn to express their will and assert their sovereign power over Parliament can we ever hope to ■ achieve results beneficial to all. There never was a time in the history of Now Zealand when it was so important for the determination of the people, through their elected members of Parliament, to resist and overthrow control by the money monopolists that threatens us as much as the war clouds. Lord Balfour, presiding at the annual meeting of the Bank of Nevy Zealand in London, referring to Mr Nash’s visit, very feelingly said; “Though the moment is unpropitious for fresh borrowing, I have no doubt that Mr Nash’s request for a defence loan will he sympathetically considered. There Ls also the urgent necessity for fresh money to finance imports if serious dislocation of trade, amounting to commercial default, is to be avoided. 1 earnestly hope that, whatever the wisdom or folly of the Government’s policy, those negotiating with him will remember that sympathy and generosity will do more than rescue the Government from its difficulties, which are largely of its own making—they will save further losses and unemployment in British firms exporting to New Zealand and will provide the security which the British investor needs.” Mr Nash, then, is faced with the threat of giving guarantees that the policy of his Government will not offend orthodox finance or default. There is not much fear of refusal of loan money for defence purposes; sympathetic generosity will ho extended to break down import restrictions at the expense of New Zealand industries in order to satisfy the demands of these modern Shylocks. It is true this Government inherited a Joad of debt when it assumed office, and the time for action to break away from control of tho London money merchant was when credits in London were nmol; in excess of requirements. The position is not easy, and onlv by strong and determined leadership shall we bo able to maintain the rights and privileges of self-government, it is to he hoped our

leaders have realised the error of their policy and will proceed to restore confidence to those electors who iplaced them at the helm of the ship of State by giving them the right to control our own currency and credit. Difficulties there will be, but they are not insurmountable, and I believe this course would have the endorsement of 75 per cent, of the electors.—l am, etc., New Truth. July 18. ______