THE INFLATION IDEA.

Southland Times, Issue 21771, 28 July 1932, Page 9

THE INFLATION IDEA.

To the Editor. Sir.—ln this morning’s leading article you condemn Mr Hinchey’s scheme as inflation. I agree that £20,000,000 extra currency would probably be too much but it is certain that we could use a good deal more paper money without any fear of over-inflat-ion. Surely, sir, you do not think that our position is hopeless or is it that you are a Mr Micawber and are content to wait in the hope of something turning up. Bj' this “bogey” inflation I suppose you mean over-inflation because I do not think it could be harmful to inflate prices to normal. As an alternative to inflation what do you think of a cure by deflation? Say we print £12,000,000 special currency, each pound to be just one half the value of the present pound and make it legal tender in N.Z. only. All wage cuts could be restored and the producers and manufacturers would be able to compete on a better footing with foreign trade both at home and abroad. It would mean, of course, that we would pay twice as much for imports as we would for our products, but surely that would be an advantage. I merely mention this as a subject for discussion as the more discussion we have the sooner we will arrive at a cure.—l am etc., EAGER FOR DAYLIGHT. Invercargill, July 27, 1932.