Dominion Finance

Manawatu Times, Volume 61, Issue 188, 11 August 1936, Page 6

Dominion Finance

DEPENDENT ON EXPORTS.

“ECONOMIST” COMMENT. United Press Association—l-sy Electric Telegraph.—Copyright. LONDON, Aug. 9. The Economist, commenting on the experiments of the New Zealand Government, stated that it is one of the advantages of a democracy to be able to indulge in the luxury of a reformist Government during prosperity and a return to the discipline of conservatism during a depression. Mr Savage’s Government is engaged in the distribution of the fruits of recovery that the conservative National Government secured. Mr Savage’s Budget is orthodox, and the recovery is one enlivened with a dash of re-distributive taxation. Provided the recovery continues, as seems probable, says the Economist, a modest increase in direct taxation should be bearable. The guaranteed prices for butter and cheese have evidently been fixed with great caution. The success of the Government's policy wholly depends on the maintenance of prices for New Zealand exports. So long as tho world recovery maintains these prices then New Zealand’s reformist experiment will continue under the most favourable conditious.