The Times. MONDAY, APRIL 24, 1939. “ Tighten the Belt " Policy

Manawatu Times, Volume 64, Issue 95, 24 April 1939, Page 6

The Times. MONDAY, APRIL 24, 1939. “ Tighten the Belt " Policy

A year or so ago tlie Nazi leader, General Goering, uttered his famous “Guns before Butter” phrase. To-day the people of New Zealand are becoming acquainted with a similar policy, but in this case one of “Sterling before Imports.” For in announcing his latest and so lengthy decrees, the Minister of Finance makes clear that these arc dictated by the drastic urgency for building up the London funds. Living standards, the livelihood of thousands of citizens, the very revenue of the State itself, i>er Customs returns, all must bow bofore this great need of the hour. New Zealand needs money—not just Reserve Bank notes of our own creation—but solid money, sterling in London.

An examination of the schedules of restricted goods indicates that every section of the community will be affected thereby. But although criticism in detail might be fairly made upon one item or another, over all the list appears to be making the best of a difficult job. Scores of items are totally prohibited; others drastically cut. Of these, numbers are of normally little consequence, but others are of significant relationship to our living conditions. An unfortunate feature observed that demands special comment is the number of cut or prohibited lines that are required in housing and house furnishing. Another broad feature that gives cause for deep concern is the almost total prohibition of trade with foreign countries. This at a time when it is so desirable to expand our overseas markets. If we refuse to buy; to whom can we sell?

Tens of thousands of citizens will be wondering just how secure are their jobs? Of necessity, considerable unemployment must be created; or alternatively, in more fortunate cases, short time will bo worked. And whilst much has been heard of building our secondary industries, this programme is hampered greatly by dearth of funds. Licenses to import manufacturing plant have been, in many cases, refused, and requests for larger imports of raw materials have been frequently turned down.

The Minister encourages the idea of imports being brought here on deferred payment. But in the present state of both our own economic position and of the world sphere, it is unlikely that this will be feasible to any great extent. And, of course, were this largely practised, our economic state becomes one of “getting goods on the slate.” The bill must be met sooner or later.

Conning once again the lengthy list of totally or drastically curtailed imports brings thoughts of a dull Christmas ahead. So many lines of goods affected are just thoso desired by a people whose living standards are high and rising. New Zealanders wanted to spend little or no more on bread or meat as their incomes rose. The surplus over and above the sheer necessities of life was devoted to the comforts, the conveniences and the finer things of living that come so largely from overseas. Those very things are now to be denied in so many cases.

The Minister tells us that these drastic measures are, it is hoped, to be not of long duration. He speaks, too, of stocks in the country of many lines which, it is believed, will largely see us through the crisis. And if this is to be a matter of just six months, that would be largely so. But there is an expressive colloquial phrase: “We’ve heard that tale before.” This will well express the feelings of many. The cynical may now declare: “Mr. Nash is quite right with his ‘Saving is now necessary,’ for what else can we do with our money? We are given an extra pound a week and then told we cannot spend it.”

All thoughtful citizens will agree, however, that drastic though these decrees are, they are truly necessary in the situation confronting the Dominion. But those same citizens will not so unanimously agree that a situation should ever have arisen wherein these restrictions must be applied. The medical treatment is agreed as immediately necessary, but how and why did the patient become so ill as to need it? Mr. Nash’s answer is that we over-imported. But how came that to be so to such an extent for the first time in our century of history? We can only hope that recovery may be early. For the treatment will be found to be severe as it progresses.