LABOR FINANCE PLAN

Poverty Bay Herald, Volume LXIII, Issue 18918, 21 January 1936, Page 5

LABOR FINANCE PLAN

“INGENIOUS METHOD”

FURTHER LONDON VIEW

LONDON, Jan. 20,

The Financial Nows withdraws its former criticism of the New Zealand Government’s announcement that, notwithstanding the inflationary expenditure on which it is intended to embark, it would raise the exchange value of the New Zealand pound to parity with sterling.

The paper says: “We must Confess that we did less than justice to the intelligence and shrewdness of the Government’s financial advisers, whoever they lie. It is now evident that the announcement of a contradictory programme was inspired by Machiavellian ingeniosity, since not only has it saved New Zealand from the. consequences of the flight of capital, but it. has actually led to the strengthening of the technical position of the pound.” The newspaper alludes to holders hastening to surrender sterling assets and says that it was an astute move on the part of the Labor Government.

“It will l«e more astute if the announcement is not followed by action for the appreciation of the pound, which would inflict hardships on most classes, and will probably never; occur, continues the article. “Meanwhile, the Government enjoys the beiieht of the absence of the flight of capital, a strong technical position and ample monetary resources.”

The writer expresses the opinion that the British Labor Party would not he able to follow New Zealand’s example in the event of victory at the polls. An ingenious method could only be applied once and the public would not be likely a second time to accept an announcement of a proposed revaluation at its face value.