DEFENCE PROPOSALS

Evening Post, Volume CXVI, Issue 106, 1 November 1933, Page 5

DEFENCE PROPOSALS

(To the Editor.)

Sir,—With New Zealand's credit sound, and an abundance of cheap money seeking investment in England, there should be 1)0 difficulty in raising a £2,000,000 loair for a contribution to the British Navy, and, ill my opinion, it would be one way of bringing fresh credit to the Dominion. Your correspondent, E. E. Young, in quoting how much the Dominion is.already paying towards the upkeep of the Navy, does not seem to realise that should that payment - -to England cease, New Zealand would be the heavier loser, by the slump in export prices, due to the further slackness of industry in England. Whereas, if the payments were increased, the Dominion would benefit considerably through export farmers' price levels rising, and, further, New Zealand could, with justice, demand preference, instead of receiving quotas. OE course, this loan method of finance makes for ever-increasing interest charges. The proper way to finance New Zealand's needs for armaments is to use the British Government's method, with which it met Mr. Lloyd George's demand for armaments and munitions to conduct the Great War. It issued new currency—Treasury notesf— to pay for armament production, and Mi> Young probably knows that Treasury notes carry no interest. Our Government could issue new currency, and with it buy the required amount of exportable primary products from oiit farmers, and hand over the purchase to the British Government in exchange for suitable armaments. This method hiis a twofold advantage: (1) It would supply the urgent need for new -money in circulation to keep our distribution system' in working order; (2) it would supply -tlie needs of the Dominion for adequate "defence protection without building up 'interest charges, and would not leave anything for posterity to pay. - One can hardly give the Government credit -for replacing the efficient Territorial Force, which it destroyed, with aerial defence of doubtful value. If an. assurance could be given that the defence proposals were on the advice of the Admiralty, *and not from the Air Ministry, one could rest content with their sound judgment. Long cruising range ships are not necessary for the defence of the Dominion, arid the greater speed of the destroyers gives them a distinct advantage. During my wartime naval service, to my knowledge no destroyer was ever weatherbound; in fact, destroyers were the only fighting ships constantly at sea. Both, Earl Jellicoe and Earl Beatty are warning the nation for its lack of cruisers, but not cruisers of the H.M.A.S. Canberra type!—l am, etc., > . G. H. WILKIN: [The greater part of Britain's wartime expenditure was financed by interest-bear-ing loans. Mr. Forbes, in announcing New Zealand's defence proposals, stated that there had been close consultation with British expert's in all arms of the service. -Ed.] ' [ ■" ' ■-.:

avenue of employment for a class for whom it has been difficult to find worJc It would also lend itself to the employment of small groups of men on a cooperative basis working ou say fiy» acm of land. • ■