SYDNEY QUESTIONS

Wanganui Chronicle, Volume 79, Issue 281, 30 November 1935, Page 10

SYDNEY QUESTIONS

MR. SAVAGE’S REPLIES KOT TOUCHING THE BANKS *’O CONNECTION WITH LANG. [ Per Press Association. ] AUCKLAND, Nov. 29. The Sydney Daily Telegraph telephoned Mr. M. J. Savage this morning, asking many questions. His replies included an assurance that the Government was unlikely to do anything to affect the trade agreement between Australia and New Zealand. He also could not see nay reason for doing anything at the moment to deal with the trading banks. Labour’s police was the control of credit and currency, and that could be done through the Reserve Bank. Mr. Savage said that universal superannuation would be attempted, based on New Zealand’s power to produce. He declared that there was no connection whatever between Labour and Mr. Lang’s policy. Mr. Savage has received hundreds of telegrams and other messages from all parts of the Dominion and overseas. Major Attlee. British Labour Leader, cabled: “Congratulations on splendid victory,’’ and one from Sir Alexander Young, but none from the other Ministers of the Crown.

NO MERE PLATITUDE COMMUNITY’S CO OPERATION. SYDNEY, Nov. 29. The .Sydney Telegraph, which publishes at length a radiophone interview with Mr. M. J. Savage, comments: “The new Prime Minister made a significant statement, which is mor.* than a platitude in the circumstances. He says that he hopes to have the cooperation of the community in his legislation. It is safe to assume that ne means that. A Government whose declared policy is to ‘begin where Seddon *<lt off will not dismay New Zealand.” CONTROL OF CREDIT THE PLANK THAT WON. TASMANIAN PREMIER S OPINION. HOBART, Nov. 29. “The magnificent swing to Labour in the New Zealand elections is the reMilt of the inclusion in the platform of that party of the plank of control of credit, and there is no question that there are going to 1 e some mighty and far reaching changes in the monetarv svstem of that Dominion,’’ said tne Premier (Mr. Ogilvie'.

BRITISH COMMENTS FEAR OF INFLATION LONDON, Nov. 28. The Daily Mail, in a leader on the Sew Zealand elections, says that the *esult will undoubtedly encourage the •xtreme Labour Party in Australia and aia< induce them to adopt the sam* programme of lavi.-h promises. In the background is the peril of inflation. The Scotsman says that lhe New Zealand Government’s record wis good, and better, for instance, than Mr. R. B. Bennett’s in Canada. The fate af the Democrat Partv, like the ReconUructionists in Canada or even the Liberals in Britain seems to .lemonstrdate a certain general impatience with middle parties which are known to be too weak to obtain office independently. The Labour programme abounds with obscurities and will possibly lead to inflati »n. New Zealand is on the brink of a hazardous experiment. The Government programme gave hope of steady, if not spectacular improvement. The country, however, has elected to follow a spectacular anl possibly a disastrous course, undeterred bv the historv of Socialist finance »ii Australia. While the C-fy awaits clarification of the situation, apprehension exists regarding the possibility of an increase in the New Zealand exchange rate with an unfavourable reaction-in Australia, possible embarrassing Mr. Lyons and prejudicing Dominion conversions. The Dailv Mail refers to the possibilitv of the New South Wales conversion being affected, and says that the election was a severe blow to the London Stork Exrhar Tl - res lit ••. is received in the City with considerable apprehension.

DAILY MAILS FEARS. MR. SAVAGE’S REPLY. ( Fer Press A’-ociation. ) AUCKLAND. Nov. 29. *‘l do not know why they should lose any sleep. There will be no increase in the rate of exchange.” said Mr. Savage. “Our policy is to remove the barriers between Britain and New Zealand caused by the high rate of exchange. I cannot see how our election can affect Australia’s rotversion proposals. There should be more cooperation with Australia concerning lew?, trade, and legislation.’’

LABOUR PROGRAMME COMMENT IN BRITAIN Received Nov. 29, 7.30 p.m. LONDON. Nov. 29. The Time?’ < i;y editor, commenting On the weakness of the New Zealand Government and municinal securities, rang'ng from H to 41 points, says: ‘‘Now Zealand, even in the most difficult moments, enjoyed a high reputation: hence the l-abour victory was a shock to investors, causing a fair a mount of selling, chiefly in small amounts. Holders of New Zealand securities, however, will be reassured by Mr. Savage’s statement. At present it is impossible, owing to the vagueness of the Labour proposals, to say whether they are dangerous, but it would appear to involve the inflation of the currency. Nevertheless, the supping industry >huuld welcome the i( return of Labour owing to the promise, to act against lureign subsidised shipp