INFLATION CHECKS

Auckland Star, Volume LXXIII, Issue 172, 23 July 1942, Page 3

INFLATION CHECKS

SEEDED IX _\ECONOMY

thl" t 8 r ® view 01 New Zealand's financial position, the London Financial Times points out that ai inl to ,° h „ i' , Reserve Bank advances outstanci- ?■ }° the State stood at £25.5 million'! n' ol thp a MoV'iie» OVer r> £6 milhon£ were for acc'ouni 91 the Marketing Department — advances thai lar sely connected with the exporting o' P A?I J7„,P roauct! h The balance. claisiSed u Other advances, stood at £19 s miiiinnc TY,ii o a f tte £ r !3 fi f U^n, haS incr ,f ase<l * roin a 1939 "average th» p9i !« an ? at tunes approached j|VL ™ llllo ns mark. While a certain proporadvances are liquidated as export* to thiS can scarcely be denied that reson snmmSJ financing, at a time when consumption goods are in short supply and when productive resources are. on the whole, approachmg maximum utilisation, is to court the danger ?L? r V nflatlonary Ixl P fic es. adds the paper. This danger is well understood in New Zealand and recently measures have been taken to stabilise p l lce °* a . wid ® of essential commodities Qn«t,^. e^f en the scope of war-time control. Questions of uage rates are. of course, inseparable connected with the price problem. . . . The BudgS figures underline the necessity of maintain*nc careful check on expansionary factors. . The S? S ce ° f Ncw Zealand on certain" iinportec LS? % equipment makes it inevitable that th* demands of war should fall heavily on her overs®fs funds No scale of internal borrowiLi cm thou ? h J economy in imported consumpcannot be greatly extended — releases overseas funds for other purposes.