WILL SHRINK NO SACRIFICE

Timaru Herald, Volume CXXXVI, Issue 19154, 9 April 1932, Page 11

WILL SHRINK NO SACRIFICE

SOUND POLICY OF NEW ZEALAND COMMENT BY LONDON PRESS United Press Association By jfMectrlo Telegraph —Copyright (Received April 9, 12.20 a.m.) LONDON. April 8. “The Times” says: The New Zealand Government has resolved to shrink no sacrifice to balance the Budget. It is perfectly true, as Mr Stewart says, that New Zealand can only meet her London obligations, as prices now are, by severely restricting purchases of British goods. The catastrophic fall has doubled, or more than doubled the real burden of the external debt for all primary producing countries, which is a disaster, not only to them, but to industrial countries supplying their markets. There is a faint hope that some remedy will be found at Lausanne, but if the gold price level cannot be raised, the Ottawa Conference should seek means of raising the sterling price level for the benefit of the Empire, and many other countries trading on a sterling basis. The desirability of raising prices is commonly admitted, and the real problem is how to bring this about. Experience has shown that cheap money alone would not achieve the object.