HASTE DEPLORED

New Zealand Herald, Volume LXXV, Issue 23221, 15 December 1938, Page 18

HASTE DEPLORED

GOVERNMENT POLICY SHACKLING OF' INDUSTRY DISCOURAGING CAPITAL STOCK EXCHANGE CRITICISM "We look to the Government to exerciso a little more patience and a little less haste in developing its policy now it is in its second term," said Mr. G. R. Buttle, chairman of the Auckland Stock Exchange, at the annual meeting yesterday. He added that the restrictive steps taken to adjust the present critical financial position would be accepted with fortitude insofar as they were of an emergency nature. "We are reluctant to believe, however, that at a time when the leading nations of the world are making prodigious efforts to extend international trade by the breaking down of barriers New Zealand industry and enterprise are to be shackled beyond the point of absolute necessity, or as an enduring policy measure," continued Mr. Buttle. "New Zealand is not yet in a position when the experience of ages may be safely jettisoned for experiment." Much was heard of the virtue of low interest rates, added the chairman, but these had some disadvantages, notably the tendency to extravagance in both public and private spending. Littlo could be said in support of a fixed interest rate which was kept artificially low. The effect was to discourage capital and send it in search of a moro healthy atmosphere. "Capital, after all, is not some mythical inexhaustible fund, but to an overwhelming extent is the savings of the people," Mr. Buttle added. "It is because capital is the savings of the people that it is so sensitive. For its growth it requires confidence in the future and encouragement all the time. "To deny capital a fair return is to discourage thrift. To scorn thrift and scoff at the desire to save is to deride the source to which all borrowers, including Governments, must ultimately look to finance their undertakings."