Greymouth Evening Star. TUESDAY, AUGUST. 23, 1949. Mr Nash And The “Mighty Dollar"

Greymouth Evening Star, 23 August 1949, Page 4

Greymouth Evening Star. TUESDAY, AUGUST. 23, 1949. Mr Nash And The “Mighty Dollar"

HpWO features of Mr Nash’s latest * Budget call for comment. In the first place, there was his strange boast that he had reduced overseas indebtedness with the “Ojld Firm” of Britain, but, paradoxically, was negotiating . with “Uncle Sam”,in the land of the “Mighty Dollar” for increased overseas indebtedness. In other words, after having reduced our loans from Britain, he is now inquiring about new loans from America. In connection with this disclosure, it might perhaps be embarrassing at. this juncture ,to remind Mr Nash of the strictures which members of his party have frequently made on the so-called “Wolves of Wall Street” Indeed,-it is more than passing strange that a Government whose members have in the past been so bitterly critical of America and its free-enterprise policy should have’ no qualms now about turning to that country in a time of need. This is of course, one more example of how accommodating the Socialist conscience can be. The Minister, in his Budget speech, was dealing with the dollar crisis when he made reference to his proposal for Joans from America. He said that the raising of loans in the surplus countries for productive purposes was the best method of overcoming the immediate difficulty. Loans should be made available on reasonable terms to the buying countries by the surplus countries. The Government had instituted inquiries as to the availability on reasonable terms and conditions of loans from Canada and the United States. The immediate and long-term solution, Mr Nash said, was the expansion of production and of exports to Canada, to the United States, and to other dollar countries, and the raising of loans to meet the present deficit between exports to and imports from those countries. There is much to commend the proposal that New Zealand should increase its dollar earnings through exporting greater quantities of its produce to the American market, but where is that produce to come from? Except for primary products, our exports are at present negligible in quantity. Surely it is not suggested that we should divert from the British market the food that is so badly needed there ? Even if we could manufacture sufficient quantities of goods in our own factories for export purposes, we would undoubtedly be up against the same costs barrier, as is hindering British trade with America. Markets that once were open are no longer f ree _not because the dollar countries concerned do not want to trade, but because the cost of British goods is too high. Other competitor countries can shade British prices. The British Socialist Government has, since its election to office, entered upon a programme of heavy State expenditure, inflation and the creation ot a huge administration charge—similar m most respects to the programme of the New Zealand Socialist Government. In Britain, for instance, millions of pounds have been spent in providing spectacles and wigs for people able to provide their own. Naturally enough, American officials have asked: “Are we to pay for the Socialist experiments and rash expenditure in Britain?” It has, in all fairness, to be recognised in this connection that Britain has already had a generous share of American aid.* . When questioned following Ins budget announcement on the subject of dollar loans, Mr Nash was silent. The country is 'entitled to far more information than it has had. If the Government intends to open New Zealand’s doors to a flood of American capital, then the people who have in the past so bitterly attacked the “Mighty Dollar”—often ignorantly and misguidedly, it should be emphasisedought to be made aware of the fact that the need is but part of the price of Socialist maladministration. Where nqw are the fantastic “insulation” dreams of our Socialist theorists? And where stand now the gullible zealots—the victims of the greatest bit of political leg-pulling of the century?