ABOUT MONEY

Timaru Herald, Volume CXLIII, Issue 20720, 6 May 1937, Page 6

ABOUT MONEY

“MR SAVAGE KNOWS NOTHING” "Mr Savage is a charming individual, but I do not think it would show any disrespect to say that he does not know anything about money, and we have to take his statements about money with a little reserve.” This was the reply given by Mr W. Machin, chairman of the Economics Committee of the Canterbury Chamber of Commerce, to a question after his addless to members of the South Canterbury Junior Chamber of Commerce last night. The questioner was Mr E. G. Kerr, jnr„ who asked to what extent New Zealand could cut adrift from the recognised financial policy of the world. Tire Prime Minister, he said, on his arrival in England, had, according to the newspapers, said: “We are determined to increase our trade. New Zealand is not going to be harnessed to the chariot wheels of other countries. We aim to have our own money system based on our own production.” If that policy were earned out, to what extent was the Dominion likely to be “put in the cart?” asked Mr Kerr. “We rest on sterling,” said Mr Machin. The Government had said all sorts of things about money, but New Zealand was tied by almost unbreakable links, in its own interests, to British sterling. The Dominion’s credit was good and that depended upon the relation with British sterling. Mr Savage might have been misreported, continued Mr Machin. "If Mr Leslie Lefeaux, Governor of the Reserve Bank, had made that statement it would be time to sit up and take notice. If Mr Savage made it we must realise that he does dream of a perfect world, but there are many and arduous steps to be taken before we get there.”