MR NASH’S NEGOTIATIONS

Waikato Times, Volume 124, Issue 20853, 11 July 1939, Page 6

MR NASH’S NEGOTIATIONS

Anxious waiting for definite information regarding what Mr Nash has achieved in London has led to a great deal of speculation, much of which is probably wide of the mark. Mr Savage has given an assurance that nothing definite had then been decided, but he said “things looked all right.” The Prime Minister denied reports that Mr Nash was awaiting instructions whether the New Zealand Cabinet approved the suggested export credits arrangement, and indicated that the Minister of Finance had full power to make the best bargain possible in the circumstances. London opinion is that the extension of export credits would obviate the danger of “commercial default” which is otherwise alleged to be possible within the next few months. It is pointed out that in the normal course of the seasons the trade balance will shortly swing against New Zealand—when shipments of primary produce begin to slacken. In those circumstances, will London sterling balances hold out until the new export season begins ? It is unfortunately true that the imports control system has had little effect on overseas funds even after several of the best months for produce exports. But until Mr Nash has completed his negotiations within the next few days there will be little profit in anticipating events

The suggestion by Mr Maynard Keynes, an eminent economist, that Britain should expend £100,000,000 in amassing vital reserves against the possibility of war, holds particular interest for New Zealand. “Why not assist New Zealand,” he asks, “by offering to purchase forthwith whatever quantity ol* goods she can ship ? Even if the gold is lost, gold so spent will go twice as far as during an emergency.” If such a proposal were adopted promptly it might be the means of rescuing the Dominion, at least temporarily, from the difficulty caused by the shortage of sterling exchange. Considerable quantities of surplus meat and other products are available for shipment. No doubt Mr Nash will make prompt inquiry into that aspect of the position.