CABINET’S FINANCE POLICY.

Pahiatua Herald, Volume XLIII, Issue 13162, 21 January 1936, Page 5

CABINET’S FINANCE POLICY.

"MACHIAVELLIAN INGENIOSITY.”

ENGLISH PRESS COMMENT. United Press Assn.—By Electric Telegraph—Copyright. LONDON January 20. The Financial News withdraws its former criticism of the New Zealand Government’s announcement that notwithstanding inflationary expenditure on which it intended to embark it would raise the exchange value of the pound to parity with the sterling. The paper says it must confess it did less than justice to the intelligence and shrewdness of the Government’s financial advisers whoever they be. It is now evident, that the announcement of the contradictory programme was inspired by Machiavellian ingenjosity since it not only

saved New Zealand from the consequences of a flight of capital hut actually led to the strengthening of the technical position of the pound. It alludes to holders hastening to surrender sterling assets and says it was an astute move on the part of the Labour Government. It will be more astute if the announcement is not followed by action for the appreciation of the pound would inflict hardship on most- classes and will probably never occur. Meanwhile the Government enjoys the benefit of the absence of a flight of capital, a strong technical position and ample monetary resources. File writer expresses the opinion that the British Labour Party would not be able to follow New Zealand’s example in the event of a victory at. the polls. Such an ingenious method can only he applied once and the public are not likely a second time to accept an announcement of a proposed revaluation at its face value.