The waikato Times SATURDAY, DECEMBER 21, 1935. NATIONAL FINANCE

Waikato Times, Volume 118, Issue 19765, 21 December 1935, Page 6

The waikato Times SATURDAY, DECEMBER 21, 1935. NATIONAL FINANCE

The statements made by the Prime Minister and the Minister of Public Works regarding the financial policy of the ox ■will, if they do nothing else, create widespread interest in e » lation that is to be brought down. Mr Savage, as usua. > as cautious in his references asserting that there is no nee or anj to be apprehensive. No one, he said, was being thieatene } _ Administration. His colleague, speaking at Napier, pie 1C e the financial proposals would he something new in t e ie a m 0 national finance. That certainly is interesting for new methods wi require a new technique, and experts in these matteis iaAC s a c that even the State control of a central hank and of the flow o investments / would require a special knowledge that ew posse "■ In fact some have admitted that there would, of necessity, have be a reversion to the old order of trial and error, involving the ns of substantial loss. . ■ There would, of course, be nothing new in the State issuing paper money. That has been done time and again, and always wi disturbing results. The prevalent idea in the Dominion appears o be that money wiil he issued against production, although the actual basis and the methods have not yet been disclosed. In France years ago they issued State notes—assignats—against the land claimed that “they represented real property, tbife most secure o possessions.” The advocates said that the notes would he reabsorbed progressively and that “ the paper money could never become redundant.” When the issues reached 8,000,000,000 francs-the papei was practically worthless, trade paralysed and industry at'a standstill. Having this rather costly lesson before them doubtless our Government will take every precaution, but apparently they c o not intend to accept the advice of Mr J. M. Keynes and place the control of these things as far away from politics as possible. The development of the plans will, naturally, depend upon the technical ability of those in control and there has been no indication yet where these experts are to be found. The Hon. W. Nash, Minister of Finance, when speaking here, expressed his confidence that the State had at its command men fully capable of putting the Labour policy into operation, hut, if it is to he something new, as Mr Semple has claimed, then these officials will have no precedent to guide them and probably little experience of financial matteis of any kind. The opportunity for obtaining the detailed knowledge required has not been presented/ in New Zealand, It is a matter worthy of note that the leading economists agree that the technical side will be exceptionally difficult, hut that aspect seems to- he given little attention here.- However, the Dominion must wait and see, and nothing will exceed in interest and importance the financial experiments that have been promised for the coming year.