Greymouth Evening Star. AND BRUNNERTON ADVOCATE. THURSDAY, MARCH 9, 1929. MEN AND MONEY.

Greymouth Evening Star, 9 March 1939, Page 6

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. THURSDAY, MARCH 9, 1929. MEN AND MONEY.

|F tin? Leader of the National Party expected a plain, straightforward answer from the Prime Minister, to his questions regarding the financial policy of the Government, and its intentions concerning changes in the monetary system in New Zealand, then he must be a super-optimist. It is not the policy of Mr. Savage, nor of the Minister of Finance, to take the country into their confidence, and they have become past-masters in the art of political camouflage. When the serious issues involved are considered, it must be admitted that Mr. Hamilton is within his rights in endeavouring to obtain information. The Labour Party adopted similar tactics, when in Opposition, and they should not object now they are in office. Mr. Savage will not gain any friends by the use of puerile remarks to the effect that Air. Hamilton “seems to be almost like a spoilt child that got a good thrashing at school.’’ If the Prime Minister of New Zealand cannot reach a higher level than that, he is obviously in need of a little tuition himself. Accusations of vilification and misrepresentation during the election campaign, made against his political opponents. do not now constitute an

answer to commonsc-nse queries, while to suggest that, had the National Party secured power, wages would have been reduced, totally lacks justification. Some change in the monetary system is apparently one of Mr. Savage’s so far unexplained ideas! in fact, he has admitted that he wants a system that will give the people access to what they produce. On the other han d. Air. Hamilton. and those for whom he speaks, entertain grave fears that any change will be in the direction of giving the Government access to the people’s money. BeI’ore long. Mr. Savage is reported to have said, he intends to ask (or

compel?) people who have savings, Io invest them in helping to build New Zealand industry. If the Government, when it obtained power in 1935, had encouraged industry, instead of sinking such large funds in public works, investors who have sent their money out of the country would have been glad to have taken shares in Dominion industries, and there would have been no need for the Government’s frantic appeals for help at the present time. Coming into office when the tide, had already turned towards prosperity, the Government launched out on a policy of expensive experiments and extravagance, which has

largely been responsible for the depletion of the sterling funds in London, and the imposition of exchange and import regulations. There is no lack ol evidence that the Government’s financial policy is looked upon with suspicion, in Britain, and even Mr. Savage cannot safely ignore such opinions. No matter how much he desires New Zealand, to be selfreliant, the fact remains that the goodwill of overseas financiers is still essential to the prosperity of the country. Members of the London Stock Exchange, months ago. drew the attention of their clients to economic conditions in New Zealand, and compared them unfavourably with conditions in Australia and Canada, describing the outlook in this Dominion as far less encouraging. They pointed out that the Labour Government had passed a number of extreme measures which would im-

pose a serious financial strain on the country, even under conditions of rising export prices. The imposition of exchange restrictions is described as a temporary way out, but the problem may become more acute as capital attempts to find its way to safer shores, fearing the consequences of the 40-hour week, State subsidisation of exports, uneconomic social services, and public works schemes competing against private enterprise for labour. Mr. Savage contends that Mr. Hamilton and his associates have done their level best to “damn New Zealand’s name and credit.” In the opinion of thousands of New Zealanders, and of many overseas financial experts, however, that unfortunate result has already been achieved by the Labour Government.