A RECONSTRUCTION PLAN

Northern Advocate, 9 June 1933, Page 4

A RECONSTRUCTION PLAN

Discussing 1 lie plan placed be-j for** 11 1 c Acting-Prime Minister! by a deputation ot, Auckland j citizens. Hie Wellington “Kvcn-| ing Post” regards it as a sincere) effort to grapple with difficulties j which may become more press-; ing in the course of the next few months. The “Post” excludes Idie proposal for a loan to lie repaid from new currency, bolding

that a currency board world Iw 1 a duplication of part of the ecu- ( - tral tiank scheme to which Government still stands commit- 1 ted. It considers, however, that 1 there is an argument, which sup- 1 ports moderate opening of Ike : purse by borrowing. “When the 1 hoped-for improvement, in pro-j 1 diice prices comes New Zealand’s rate of recovery will be rapid.! There is even the possibility of a,‘ minor boom succeeding the severe,] slum]). It is legitimate to antici-i! 1 • - T • 1 ' pate this by moderate expendi-: lure from loans now so as toi make the process of rehabilitation more even. A man who isj without work' and means is en-j titled to borrow when he has in j prospect employment which will | enable him to repay. Moderate] increase in. expenditure now may, j from this point of view, be] sound policy: but it must bo j moderate. Otherwise, as Mr Coates pointed out, we should only have a burst of artificial prosperity and be worse off afterwards.” I