NATIONAL FINANCE.

Star (Christchurch), Volume XLIV, Issue 600, 2 November 1932, Page 5

NATIONAL FINANCE.

Prime Minuter Criticises Labour Policy. GOVERNMENT DEFENDED. (Special to the “ Star.”) WELLINGTON, November 1 The policy of the Labour Party in regard to national finance was criticised by the Prime Minister when defending the redemption of outstanding Treasury Bills out of the last London loan. Mr Forbes said that he would like to find some of the money the Labour Party talked about, but all their propositions were confined to generalities which led nowhere. It had been stated that the Government exceeded its authority in the issue of Treasury bills, but members could be assured that the Auditor-General kept a close watch on the transactions of the Treasury Department. The reason £4,000,000 worth of Treasury bills appeared to be outstanding overseas was that £4,000,000 of public debt had been retired in New Zealand. There had been no addition to the national debt, and absolutely no question of Treasury bills being converted into long-term loans. The Prime Minister said members of the Opposition had argued that New Zealand should adopt a managed currency, but in experiments of that nature one could not act irrespective of conditions overseas. In New Zealand they were endeavouring to stabilise the banking position by the coordination of the various banks under a central bank. It had been stated that this bank would be under the domination of money lenders, but in point of fact it would be a New Zealand institution governed by New Zealanders. The central bank would also be free from political control, and that policy would be in line with that laid down by such men as Lord Snowden, who contended that there should be no State interference in banking matters.