ENRICHING A COUNTRY.

New Zealand Herald, Volume LXV, Issue 19928, 23 April 1928, Page 14

ENRICHING A COUNTRY.

Sir,—Your correspondent "Economy" makes out what appears at first sight to be a conclusive case,, but his position is just an example of the misconception that pervades the community in regard to wlftt really adds wealth to a country. He thinks in terms of "money," "credit," "securities," etc., instead of in terms of real wealth. He has chosen to base his arguments, in the main,, on. the question of foreign investments, claiming that this is the way to pile up wealth by an ex-porting-nation. I will confine myself to this one point; his other contentions will stand or fall with it. Ignoring, for the sake of argument, our foreign interest and other obligations of a like nature, let us consider what would happen if we, in an attempt to enrich New Zealand, were to send out our-products and bring in nothing at,all of a tangible description. Say the Dominion were to export £50,000,000 worth of commodities yearly for the next ten years, lending abroad the proceeds of same. Ex hy r 'Othesi, imports of commodities to cover the_ return of principal or the payment of interest due to this country would barred: what then would happen to New Zealand ? We should be so impoverished by our visible exports that people would clear out of the country like rats from a sinking ship. Our imports would consist of "securities," which, unless and until the bringing in of commodities were permitted, would be as worthless as a German paper mark. Equilibrium is Best.