STATE BORROWING
LIMITS ON EXPANSION OF CREDIT
SHORTAGE OF WHAT MONEY WILL BUY.
SCHEME OF SMALL SCALE INVESTMENT.
(By Telegraph.) (Special to “Times-Age.”) WELLINGTON. This Day.
The money for housing and most of the borrowing for public works and other purposes were obtained from the Reserve Bank, the Prime Minister (Mr Savage) observes in the Budget. This method of finance has the effect of increasing internal purchasing power, and its usefulness is conditioned by the volume of production. In present circumstances, when sterling funds are short and imports have to be restricted this type of finance, while justifiable and beneficial in certain circumstances, has obvious limitations during the current year. In fact, it must be clear to anybody who studies the position that we are not suffering from a shortage of money in New Zealand, but from a shortage of what money will buy.
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Bibliographic details
Wairarapa Times-Age, 2 August 1939, Page 5
Word Count
144STATE BORROWING Wairarapa Times-Age, 2 August 1939, Page 5
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