Mr. Fraser On Nationalist Money Policy

Chronicle (Levin), 3 November 1949, Page 8

Mr. Fraser On Nationalist Money Policy

Press Association )

(Per

NEW PLYMOUTH, Nov. 2. "Mr Holland vvould not answer my questions, and I have a shrewd suspicion that he cannot, " said the Prime Minister (Mr Fraser) at Hawera tonight when referring to Mr Holland 's refusal to answer the ' ' most elementary questions" about the monetary systein proposed by the Nationai Party. It wa? elear evidenee, he said, that it was ouly a tacade of empty words. ' ' In not one particular is Mr Holland able or willing to give answers whieh ,t is neeessary for the people to ltnow if thev are to understand whether the pro posed system will work, ' ' said Mi Fraser. ' ' There are considerable mis givings about the Nationai Party's view of the monetary system because of Mr Holland 's ingenuous diagnosis oi ' inflation in which the value of serviee.of all kinds such as retailers' services, professional services, transport services, education and the services oi armed forces are not taken into aecount as matters that have to be paiu for. "Mr Holland 's apparent lack of un de\standing of this simple fact make? it all the more neeessary that he is not ignorant of where the new monetary system would lead him and the country. The fact that Mr Hollanu runs for cover w.hen I ask question? which he should be readv to answer en titles everyone to be suspieious of his policy and to deinand an answer. "A new monetary system is a matter which is so fraught with good or evil ffor the people and so complex that the countrv should be left in no doubt tha: d sound workable mechanism is pro posed. At the moment all that is elear from the Nationai Partv spokesman is that the volume of money is to be reduced. " Although Mr Holland will not teli us what method is to be used to reduce the money supplv and which people will receive less money, the proposed reduction in the money supply spells deflation. No matter" what soft-sounding words the Nationai Party mav use dellation under the Nationai Party is a thing people dread. Of all the evidelice the Nationai Par ty's finaneial policy is a policy of deflation, but beyond this there is no evidenee that any teclmique exists or can exist to create the new monetary system proposed by the Nationai Party. "Now we have a new element of eonfusion in Mr Clifton Webb s. prediction made at Brooklyn on Monday tnat there will be an alleged non-politieal control of currency and credit by the setting up of a controller of finance. The proposed controller will have power of deunder the Nationai Party's policy of deflation would result in permanent damage to the welfare of the people, their jobs, businesses, fa,rms and homes. This is the meaning of what the Nationai Party has said. So far as it means anvthing else let Mr Holland say so and answer the straight questions I have put to him."