FINANCE SACRED

New Zealand Herald, Volume LXXIII, Issue 22463, 6 July 1936, Page 10

FINANCE SACRED

MR. SAVAGE REPLIES

FIELD OF FAVOURED FEW NO UNDUE ADVANTAGE SOUGHT By Telegraph—Press Association—Copyright WELLINGTON, Saturday A declaration that the Government had no intention of attempting to take undue advantage of any section of the British people was made by\hc Prime Minister, Mr. Savage, to-day, when making a further reference to criticism directed at his announcement regarding New Zealand's indebtedness overseas.

"The editor of the Financial Times," said Mr. Savage, "refers to what ho term.'; my 'well-intentioned but dangciotis ignorance,' and says that when T realise that money yield governs prices the bother that I have created will die down. A person who is capable of making such a stupid statement is not entitled to reflect on my intelligence.

."The Leader of the Opposition, too, is horrified at the .idea that any attempt should be made to improve our position with our creditors overseas. 1 wonder if this is the same Mr. Forbes whoso Government, by Act of Parliament, and without consulting thoso concerned, reduced rates of interest, thus breaking contracts entered into in New Zealand, and lifted the exchange rate from ]lO to 125, thus creating an artificial barrier against the very people for whom his heart bleeds to-day, and knocked the bottom out of agreements entered into at Ottawa and elsewhere? Is it tlio same Mr. Forbes who, 011 his return from Britain in 19.32, commenced a policy of wage reductions and general deflation which wrecked the fortunes of thousands of New Zealand people and made it impossible for them to meet their commitments on homos, farms and other investments? "What a strange state of affairs. We may destroy securities in New Zealand. We may send men to Britain to bargain with shipowners about freights. A\e may keep an expensive staff in London for the purpose of selling to the British people on the most advantageous terms. We may bargain about anything but money. The field of finance is sacred, only to be trodden by the favoured few. It is not the intention of the New Zealand Government to attempt to take an undue advantage of any section of the British people. That is surely borne out hy 01: r intention to send the Minister of Finance to Britain for the purpose of increasing our trading and other relationships with the Mother Country.