CHAOTIC STATE

Waikato Times, Volume 124, Issue 20721, 3 February 1939, Page 8

CHAOTIC STATE

COUNTRY’S FINANCES FIQHT HON. J. G. OOATES CRITICAL . . *m i : u “AT MERCY OF THEORISTS” (Special to Times) AUCKLAND, Friday “The Labour Government has no one but itself to blame for the present difficulties,” stated the Right Hon. J. G. Coates, M.P. for Kaipara, in a statement yesterday on the Government’s trade control scheme. ‘‘Reckless mismanagement of the country’s finances has been responsible.’’ Mr Coates said he was not necessarily voicing the official views of the National Party. As a former Minister of Finance, and the immediate predecessor in that office of the Hon. W. Nash, he was concerned at the financial bungling that had taken place in an attempt to prove the efficacy of Socialist theories. Change In Three Years “It Is only fair,’’ said Mr Coates, “that I should re-direct the public attention to the statement on national finances which I issued on relinquishing office in November, 1935. In that statement, with a backing of Treasury figures, I showed how Labour was taking over the reins of Government with the finances of the country in first-class order; how all accounts and departmental balances were in credit; and how the budgetary position justified not only my earlier estimates, but also a general feeling of confidence in the future. “Now let us see how things have changed in three years. The finances of the country are no longer sound; departmental'balances, it seems, have been dissipated; the budgetary position is shaky; and nothing that the Government is doing can justify confidence in the future. After four or five years of unparalleled trade depression, the finances of the country were sound; now, after three years of prosperity, they are in chaos. Last Government Defended “The last Government has been blamed, I know, for accumulating excessive reserves of sterling exchange in London. The fact of the matter was that we were facing a financial and economic situation which was changing almost daily. In the natural course of events, sterling balances would have been reduced to some extent as trade conditions improved, but the last Government held that it was wise to keep adequate reserves in London. Those reserves have now’ been stupidly squandered, and we shall have to tighten our belts and save In London in order to get out of difficulties which originated not overseas, but in New Zealand. “The drift has been going from bad to worse. Toward the middle of last year, Mr Nash could have introduced a measure of exchange control, similar to that which the Coalition Government found necessary as a temporary safeguard for the Dominion’s finances. The whole thing could have been handled through the banks and within six months the position would have returned to normal. But now we are to be at the mercy of the theorists, perhaps indefinitely.” PEOPLE SATISFIED IMPORT REGULATIONS MR PARRY’S CONTENTION (By Telegraph—Prep* Association) HASTINGS, Thursday There are many who complain bitterly that the Government’s import regulations are cutting off livelihood,” said the Minister of Internal Affairs, the Hon. W. E. Parry. In an interview to-night. “I would like to reply to them that not long ago thousands of people had their livings cut off without apology or explanation, with scant ceremony. Yes about 70,000 of them, and there was no word about it. No outcry was published then; they just suffered in silence.” The import regulation* were one step toward preventing such wholesale destruction of rights to earn a livelihood among New Zealanders, said Mr Parry. Import control was agreeable and satisfactory to the vast majority of the people and it was for the good of the people generally that the Government was working all the time. "Our home industries must be protected.” the Minister continued. “The arts and crafts of New' Zealand must receive primary consideration, and we must develop industries and create employment for our own people.” In the matter of home defence, the development of these industries was important. To be self-reliant was an important matter when defence was under consideration. The stimulation of New Zealand enterprise attendant on the regulations was a feature which should be appreciated. “The import control regulations will be a success,” said the Minister. “There are a few’ who are raising violent objections, but the mass of the people like it. That Is what counts. The Government works for the good of the majority.” IMPORTED LITERATURE LITTLE LIMITATION IMPOSED (By TPl # *o^r» r *h —Asportation) WELLINGTON. Thursday Booksellers In Wellington seem fairly well satisfied with their treatment under the Import control regulations. Imports of books and periodicals from the United Kingdom and Australia are in practically all cases being allowed up to the'full amount imported during the first half of last year. It Is reported that, imports from the United States are being reduced 75 per cent. The restriction of American imports is not considered serious except where it afreets periodicals. It is understood that the final decision has not yet been made Rbout these. One bookseller said to-day that the most notable curreni literature published in the United States could be obtained from London .-purees.