Borrow Way out of Slump

Manawatu Times, Volume LIV, Issue 7191, 24 June 1933, Page 7

Borrow Way out of Slump

Exhaustion Point of Deflation UK. LISTON’S OPINION Per Press Association AUCKLAND, Last Night. “As one closely in touch with the needs and the ever-growing hardships of a large section of the ordinary people, I feel that your Worship rendered a distinct service to the country,” states Dr, J. M. Liston, Roman Catholic Bishop of Auckland, in a letter to tho Mayor (Mr Cr. W. Hutchison), congratulating him on raising, by means of the recent deputation to the Rt. Hon. J. G. Coates, “a‘ question of first-rate importance.” “We have reached, in the third year of the depression, the exhaustion point of deflation,” says Dr. Liston. “Numerous expedients" have been tried, but tho depression is not ending itself. Hitherto, the people have shown endurance and courage beyond praise and are ready, if needs be, for greatoT sacrifices; but to-day a spirit of despondency prevails almost everywhere. Your Worship has asked the country to face these realities and boldly try another policy; the issue is a clear one.” Discussing the policy of the Government, Dr. Liston asks why it should be necessary to balance tho Budget year by year. “If it is dangerous to leave the Budget unbalanced when prices arc rising, is it not equally dangerous to seek, at all costs to balance it when prices arc falling 1 ?” he asks. "To balance the Budget sounds well, but the requirements of a country vary ■with peace and war, booms and depressions, and tho Budget should vary with them.” Drift Deprecated

He agrees that in these circumstances “we my well go in for a policy of borrowing, sound borowing, justified by tho natural resources of the country and the spirit of tho people. If we are going to help ourselves to the beginnings of economic recovery, and not bo content to wait and wait on the outside world, it seems to me that the only means of TC-crcating the purchasing power of tho people .is through a reasonably large extension of our national credit for useful public works, and especially for land development. Parliament can do this, as vour Worship has proposed, by the issue of bonds, and there is sufficient money in the country itself to buy these bonds. There are no doubt disadvantages in such a largo issue of bonds, but these arc, it seems to many us in touch with the lives of the people, trifling in comparison wiU the evil results of a policy of drift and inaction.” ,