“GROSS INFLATION”

Evening Star, Issue 25782, 3 May 1946, Page 4

“GROSS INFLATION”

MISUSE OF RESERVE BANK FORMER GOVERNOR'S INDICTMENT HIS MESSAGE OF WARNING (P.A.) WELLINGTON, May 3. In the interests of every New Zealander he hoped the political parties would hammer out a commonly acceptable plan to guard national prosperity, said Mr Leslie Lefeaux, former Governor of the Reserve Bank, in an interview ■ yesterday before going aboard the Akaroa to-day on his return to Britain. Mr Lefeaux said that the Reserve Bank which he came here 12 years ago to found should have proved a tower of strength to New Zealand’s economy. Instead, U had been used to undermine currency by means of gross inflation. He said the country had to face post-war economic issues calling for the co-operation of all, perhaps on the basis of the lucid and the statesmanlike report recently submitted by Mr F. P. Walsh to the Federation of Labour. Certainly party differences should be confined to matters of less vital importance to the people. Mr Lefeaux said lie wanted to sound three particular notes of warning to the people. Briefly, they were: (1) Beware of. having too many people in unproductive occupations living on the rest. (2) Do not think people are rich merely because they have money in their pockets or in banks. Money is useless unless it can be employed to secure goods and services. - (3) Do not spend too much on enjoyment Jiere and now of consumer goods. Set aside sufficient capital for future developments. Savings and capital are synonymous—they are both seed and corn for future harvests.