LABOUR'S MONETARY POLICY

New Zealand Herald, Volume LXX, Issue 21554, 27 July 1933, Page 13

LABOUR'S MONETARY POLICY

Sir, —Mr. John A. Lee says lio agrees to differ with me in m.v statement that President Roosovelt's National Industries Recovery Act is on similar lines to that advocated by the Labour Party in New* Zealand, viz., "shorter hours and higher pay, thus giving a greater purchasing power to the workers." After "agreeing to differ" he confirms exactly what I said in the following sentence in his letter: "Both agree as to reduced hours and increased wagespending." Where Mr. Leo finds a difference between President Roosevelt's policy and that of New Zealand Labour is in the President's proposal to the cotton growers in the Southern States to destroy one-fourth of their growing crops for the purpose of reducing the surplus, and to pay cash to the farmers for the acreage destroyed. But that was a matter I never mentioned, for the simple reason that it had not been proposed when I wrote my letter. He mentions another difference; he says with regard to guaranteed prices, Roosevelt would guarantee prices "through currency manipulation; Labour through a State financial machine." If that "machine" is a printing press, then it seems wonderfully like a proposal for "currency manipulation" to--2:31 Parnell Road. J. Tiioknes.