DEFLATION DANGER

Dominion, Volume 37, Issue 239, 6 July 1944, Page 4

DEFLATION DANGER

New Zealand Problem (By Telegraph -Press -'ssoeiation ,~ AUCKLAND. July k warning against the possibility of deflation and a resultant depression mor. disastrous than the last »a» „nenII Mr JI J. Kelliher, managing diiectot of Dominion Breweries, in addressing the annual meeting of shareholders Mr. Kelliher pointed out that a Mtaii. important period of and reeonsiruetion must be faced belote lon,, and iaid it was reasonable to presume (bat with the war entering its final 'h.i,<the peak of the iiillatiomirs period hid been reached, and a formidable cm tiKtion of purchasing power would besom. inevitable unless definite steps were taken lo avoid deflation of values and proven undue credit contraction. will a I u attendant evils experienced dal ill, th depression after the last war. New Zealand's economic and hnaiicial polie.i dini,‘.v (be coming rears would, tlierelore. lie of'tlie utmost importance to the weltaie of the people. . ... , It was essential to stain liz< the national economy at a lust mid euuitnluo point, that was mst and eq ni la> e both hi producer and consumer. J .ns emiiit he done only by effectively controlling both credit and currency. b abbitt of Ibe Dominion's internal price level must be made the aim and main objective of monetary eon t r 01.