DOMINION’S FINANCES.

Manawatu Standard, Volume LVI, Issue 44, 21 January 1936, Page 10

DOMINION’S FINANCES.

COMMENT ON POLICY. “MACHIAVELLIAN INGENUITY. ” LONDON. Jan. 20. The Financial News withdraws its former criticism of the New Zealand Government’s announcement that, notwithstanding inflationary expenditure on which it intended to embark, it would raise the exchange value of the pound to parity with sterling. The paper says: “We must confess that we did less than justice to the intelligence and shrewdness of the Government’s financial advisers, whoever they be. It is now evident that their announcement of a contradictory programme was inspired by Machiavellian ingenuity, since it not only saved New Zealand from the consequences of a flight of capital, but actually led to a strengthening of the technical position of the pound.” It alludes to holders hastening to surrender sterling assets and says: “It was an astute move on the part of the Labour Government. It will be more astute if the announcement is not followed bv action, for appreciation of the pound would inflict hardship on most classes and will probably never occur. Meanwhile the Government enjoys the benefit of the absence of a flight of capital, a strong technical position, and ample monetary resources.” . . Tjv> writer expresses the opinion that the British Labour Party would not be able to follow New Zealand’s example in the event of victory at the polls. “Such an ingenious method can be applied only o.nce. The public is not likely a second time to accept an announcement of proposed revaluation at its face value.”