POLICY DEFENDED

Manawatu Standard, Volume LIV, Issue 118, 18 April 1934, Page 2

POLICY DEFENDED

ACTIONS OF GOVERNMENT. PRIME MINISTER’S SPEECH. Per Press Association. , WELLINGTON, April 17. Straight talking characterised an address by the Prime Minister to members of the Wellington Chamber of Commerce at its annual meeting tonight'. Mr Forbes, who warmly defended the policy of the Government: during the last two years, deprecated much of the criticism which had been levelled at the Government “by stern-faced men who sit at tables and pass solemn resolutions without due appreciation of the difficulties with which the Government has to contend.”

Naturally, said Mr Forbes, there would be criticism of what the'Government was doing, but at the same time a little appreciation of the work of the Government would be encouraging. Gentlemen who were always finding fault should look overseas. The present progress of the Old Country was a direct result of the maintenance of a policy which was deemed by the Government to be sound in its essence.

Referring to the criticism of the New Zealand Government’s action in raising the exchange rate, Mr Forbes pointed out that when Britain went off the gold standard and depreciated its currency by 30 per cent, thereby, its action was applauded as being very sound. This was done at a moment’s notice, yet when the Government here raised the rate to 25 per cent, it was roundly condemned from many quarters. “I ask you,” said Mr Forbes, ‘.when is England going back on gold? The average business man in Great Britain hopes it will he never. There the depression resulted in a drop of 18 per cent, inthe national income, whereas in New Zealand ours has fallen away by 35 per cent. When in England I asked the people there to remember that we were in a much more difficult position and had to adopt measures which we had hoped to avoid. I asked them to realise that we had to do the best we could and in raising the exchange we were doing the only thing we could to encourage our export industry; but you will notice that our critics did not say Great Britain was doing wrong in going off gold.”