LONDON FUNDS

New Zealand Herald, Volume LXXV, Issue 23162, 7 October 1938, Page 13

LONDON FUNDS

DWINDLING SURPLUS

EXPORT MARGIN NARROWING RATIONING EXCHANGE FEARED * DRASTIC POWER FOR MINISTER [from our own correspondent] HAMILTON, Thursday The danger of the margin between the value of New Zealand exports and her imports from Great Britain closing to such an extent that there would be insufficient funds left in England to meet New Zealand's interest bill, was emphasised by Mr. A. W. Grant, National candidate for Hamilton, at Melville last evening. Mr. E. F. Peacocke presided over a good attendance. The candidate was given an attentive hearing. Amplifying his point about the London funds, Mr. Grant said that New Zealand's interest bill on its overseas debts totalled £11,000,000 annually, and it was necessary that the value of exports should exceed British imports by that .amount to ensure the payment of the interest bill, or that adequate surpluses should be held in London. Socialising Production Mr. Grant pointed out that exports exceeded imports last year by only £3,500,000, and that £7,500,000 had"had to be drawn from the London reserves to meet interest charges. If this movement continued, it would inevitably lead to the rationing of the exchange, giving the Minister of Finance a complete grip of the total export market and the control of all imports. Should this be brought about, another step would be achieved in the socialising of the productive life of the community.

" Referring to the guaranteed price, Mr. Grant said the advisory committee appointed by the Minister of Marketing had been given Mr. Nash's formula and scheme, but when the committee based its recommendation on the formula and scheme its recommendation was not accepted. Use of Public Credit

The Minister of Agriculture, the Hon. W. Lee Martin, had stated that should the overseas values of dairy produce fall to 6d per lb., the money to meet the guaranteed price would be found out of the public credit. Mr. Grant asked why that system was not employed to bring lie price up to that recommended by the advisory committee. " The social security measure is remarkable not for what it says but for what it does not say," said Mr. Grant. There never was ft of such importance that left so much unexplained, added the candidate, who remarked that it was better to be sure than tive. «, Mr. Grant answered a few questions, and was accorded a hearty vote of thanks and confidence, CORDIAL RECEPTION MR. BARRELL AT FRANKTON [from our OWN correspondent] HAMILTON, Thursday "In 1935 the Labour Party presented a manifesto containing 12 promises, every one of which has been carried out, said Mr. C. A. Barrell, M.P., Labour candidate for Hamilton, when addressing an audience which completely filled the Frankton Town Hall. Mr. j. R. Fow presided. Mr. Barrell was giveu a cordial reception, his address being punctuated by frequent applause. No questions were asked at the close of the meoting, and cheers were given for the speaker and for the Prime Minister, Mr. Savage, after a resolution of thanks and confidence in the Labour Government had been carried by acclamation.