MUST CONTINUE

Otago Daily Times, Issue 26232, 16 August 1946, Page 6

MUST CONTINUE

STABILISATION POLICY FLEXIBILITY TO BE DESIRED The statement that the Government firmly adhered to its stabilisation policy, which was undoubtedly in the best interests of all sections of the community was made by Mr Nash in his Budget speech; “ The policy must continue,” Mr Nash added. " until such time as the supply of goods for consumption is adequate to meet the demand, but the administration of the scheme must remain flexible, and methods will no doubt alter as conditions change and the position generally is eased. “ Recent happenings in the United States of America, where the supply position is relatively much better than in New Zealand, are an object lesson as to what happens when controls are lifted prematurely. In such circumstances some producers and traders for a time can make large profits by exploiting the shortage of goods, but with higher costs it is not long before other sections demand increases, and if that process continues the ultimate result is disastrous for everybody. ' “ Numerous suggestions are made that inflationary difficulties can be adjusted overnight by the simple process of currency manipulation,” Mr Nash continued. “I am satisfied that there is no road to national prosperity and an increase in general living standards, except by increased production and equitable distribution, and to this end the Government is concentrating its best efforts.” ■'