MR. THEODORE'S PLAN.
CRITICISM IN THE TIMES. A CONFUSION OF IDEAS. (Received February 9. 8.45 p.m.) Times Cable. LONDON, Fob. S. The city editor of the Times says that although full details of Mr. E. G. Theodore's plan have not been revealed a general description gives the impression that it is the result of a confusion of ideas. The allegation that bondholders are getting 164s instead of 100s interest on the 5 per cent, slock is a misrepresentation of facts. Any manipulation of the price level.jn Australia by monetary pojicy or otherwise would not help the country. Tho Australian pound is depreciated because it has been inflated. Australia has in effect deflated the currency. Depreciation can only be cured by drastic deflation, helped by foreign borrowing. Meanwhile depreciation by reducing the gold value of »vages and other costs will slowly help to establish a fresh equilibrium in ecouomio affairs in Australia.
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Bibliographic details
New Zealand Herald, Volume LXVIII, Issue 20794, 10 February 1931, Page 11
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151MR. THEODORE'S PLAN. New Zealand Herald, Volume LXVIII, Issue 20794, 10 February 1931, Page 11
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