LABOUR’S POLICY EXAMINED

Timaru Herald, Volume CXLII, Issue 20505, 25 August 1936, Page 7

LABOUR’S POLICY EXAMINED

ENGLISH PRESS REVIEWS BANKING AND DAIRY EXPERIMENTS “WILL THEY WEATHER BAD TIMES?” United Press Association—By »ectrlc Telegraph—Copyright (Received August 24, 9.20 p.m.) LONDON, August 24. “The Economist,” commenting on Mr Savage’s programme says: "London is calmly awaiting developments and great importance attaches to the operations of the State Reserve Bank and State intervention on a scale on which Mr Savage is working may be successful, while prices are rising and exports are increasing and revenue is buoyant, but whether on the long view, the plan will encounter difficulties, Is open to argument. The past history of guaranteed price schemes and the backing of them through the Reserve bank suggests that the Government may have awkward problems if the depression returns. Dairy Export Scheme. “The Financial Times” editorially describes New Zealand’s dairy produce export scheme as an interesting experiment. The paper points out that it may at first disorganise the business of the New Zealand Banks; (2) confront the Government with a number of problems including the necessity for deciding whether to accept all produce, or impose a limit and (3) to tend further to drive international trade into bilateral channels, owing to the temptation to sell in bulk.

“Experience has shown,” says the paper “that as the free international market disappears, world trade contracts and the world exchange become more restricted. We do not seek to condemn the scheme but rather would urge the Government to remember it is a very complicated undertaking, capable of serious reactions in the nation’s economic life. Such a scheme may, in certain circumstances, be beneficial, but the inherent dangers must be recognised.”