DRASTIC ACTION

New Zealand Herald, Volume LXXV, Issue 23226, 21 December 1938, Page 15

DRASTIC ACTION

EXCHANGE RESTRICTION THE FINANCIAL DRIFT VIEWS OF MR. HARMAN REEVES [llY TELEGRAPH —OWN CORRESPONDENT] DUNEDIN, Tuesday Reference was made by Mr. Harman Reeves, chairman of tho Dunedin Stock Kxchange, at the annual meeting today, to the coming internal loan and also to the Government's insulation plan. The speaker described Labour's general policy as one of advanced Socialism. "A large loan for public works is to come on the market shortly," Mr. Reeves said. "This Mill require to carry an attractive rate of interest in order to ensure public •» subscription. Since the last annual meeting a general election has been held, and the return of the Labour Government by a very substantial majority reflected the vote of confidence of the people and the approval of its policy of advanced Socialism. "Wo have now reached the stage where the Government's insulation plan has been introduced by which the export of capital from the Dominion, except under certain conditions, is prohibited. This is very drastic action for any Government to take, and is expected to be adopted only when the Empire is at war or in a case of great emergency, and not when our primary

products are realising fair market, prices overseas and the spending power of the people of the Dominion is said to be greater than ever in history.

"The action now taken reflects the serious state into which the finances of the Dominion have drifted, and ou«» wonders whether all is well with thp ship of State. We can only hope as loyal citizens that the efforts of the Government will be effective."