MORE CURRENCY

Poverty Bay Herald, Volume LIX, Issue 17949, 29 November 1932, Page 4

MORE CURRENCY

LABOR LEADER’S PLAN

CURE FOE DEPRESSION

The Loader of the Opposition, Mr 11. 10. Holland, the other night addressed the largest political meeting vet held in Karamea. lie reviewed i the economic situation in New Zealand, land contrasted statements made by Air I Forbes and Mr Coates a few months ago to tiie effect that wo. had turned I the corner with Mr Forbes’ latest dei i.laration that, the next 32 months will he flic blackest in the history of the i Dominion. Mr Holland outlined the Labor Party’s .policy of -economic reconstruction and for the rehabilitation in industry of men now on relief works, and said that a Labor Government would provide whatever money was required to finance works of real value to the country, lie contended, however, that the amount of additional curreu'cy i needed would not be'large, j Arimrding to Air Holland there was ! quite as much money in New Zealand now an before the depression, but the (rovernment’s policy of deflation had aggravated the consequences ot slump prices overseas ami had slowed down the velocity of both the legal tender currency and the cheque system in the Dominion. With a restoration of the purchasing power the velocity of money in circulation would return to hormal, but if additional currency should be required it would he provided. 31 o said 'lie was not advocating inflation, but

stabilisation. Air Holland said that the Labor Thirty stood for a planned system of prod'urt ion, distribution, and marketing, with arrangements for a guaranies.l prise to the primary producers on, sirs, a five-yearly moving average.