ECONOMIC COMPLICATIONS

Bay of Plenty Beacon, Volume 15, Issue 55, 12 June 1950, Page 4

ECONOMIC COMPLICATIONS

Sir, —From the New Zealand Herald March 4, 1950, price stabilisation “Existing system to continue.” Stabilisation can only be sustained by a dictatorship! Stabilisation on a free market can only be sustained by high taxation (i.e. subsidies). Stabilisation of prices if I know the words meaning is not to raise prices, but to hold them. Quoting from Hansard Mr Bodkin and Mr Bowden stated to this effect: That every country must establish its own currency according to its “internal value”; if this was carried out free of foreign influence, it would stem the tide of taxation and inflation. Taking the subsidies off at the present juncture is like Stalin cutting down the rouble by half over night. (Deflation). Hansard July 6, 1949, reports Mr Holland saying that he could hand over the power to control credit and currency to an outside body! As the power of control has been and still is in the hands of foreign finance this' statement needs explaining as to who that body might be. So while our administration is controlled by foreign finance we will continue to have a vicious spiral of inflation, and/or deflation; with no industrial peace with prospects of poverty midst staring us in the face. Yours etc., W. BRADSHAW. Ohope, June 11.