MR POLSON’S ADDRESS TO THE FARMERS’ UNION

Otago Daily Times, Issue 21694, 12 July 1932, Page 9

MR POLSON’S ADDRESS TO THE FARMERS’ UNION

TO TUB EDITOR. Sib, —Ouce again in Wellington Mr Pol-; son embarks on his crusade against the Labour Party. There is a type,of individual who culls striking passages from bis, reading and gets up and talks about them as his own, producing such ’ a maze of inconsistencies as are , really amusing, i quote your report: “ Any one nation which attempted to increase its currency, in active circulation, pay a reasonable price to primary producers, and raise the purchasing power of its people would put itself out of competition in world markets.” Compare this with his later statement, when advocating an advance in the exchange rate: “It did increase the reward for the production of primary produce exporters, and it did increase the money in circulation,: and in _ consequence the velocity of circulation,, which was vital to the prosperity of the country. . . i f am convinced that -if farming is to be restored to any semblance. of prosperity the only immediate hope is to stabilise exchange at as high a rate as is possible. . But there is better to follow. With no. references or apologies Mr Poison says!— "In my” (“my” take note) “opinion the immediate choice before the Empire monetary authorities is inescapable; either we must have a soundly managed gold standard, which can only be secured by well-ordered international action, or we must definitely abandon gold and rely on a managed standard without any metallic basis at all. We must not delude ourselves once again into thinking that if we return to gold all will Be well; renewed indulgence in that comfortable idea would Be fatal. Deliberate, skilled, and resolute monetary management with or without gold is a sine qua non of steady economic Pr f o r w, then, in his annual address to the Midland Bank shareholders • in January last, the .terms of which can be found in the Eoconmist of January 30, 193(p. 230), Mr Kenna said: “The immediate.choice is inescapable; either we must have a soundly managed gold standard, which can only be secured by well-ordered; international action, or we must definitely abandon gold and rely on a managed standard without any metallic basis at all. . . . We must not delude .ourselves once again into thinking that if we return to gold, all will be well, renewed indulgence in that comfortable idea would be fatal. Deliberate, skilled, and resolute monetary management with or with-: out gold is a sine qua non of steady economic progress.” I wonder if the. copyright law applies to bankers’i'reports. Mr Poison theii proceeds to a reduction of import tariffs to lower the cost of living. In reading the Economist he forgets that what applies to England may. not apply to New Zealand, for two reasons, first, England has large overseas investments, whereas New Zealand has debts, and secondly, that New Zealand lias not the efficient tax collecting machine that England hSfc, and consequently needs some of her import tax., for revenue, whereas England merely taxes to exclude. The South Island wheat farmers, however have money, to spare if they. Can use' it sending their president around New Zealand advocating lower import duties.-—I am, etc., PtAifo. , Kiirow, July;Bi ■ -■. >• ■