"ARBITRARY MEASURE"

Evening Post, Volume CXXVI, Issue 137, 7 December 1938, Page 14

"ARBITRARY MEASURE"

IMPORTERS' COMMENT

EXPLANATION REQUIRED

"We are not prepared to agree with the Minister of Finance in his repeated statements that excessive general importations are the cause of the present position and low amount of London funds," said Mr. G. W. Guthrie, of Wellington, president of the New Zealand Importers' Federation. "We contend that the higher standard of wages paid to the people of this country has created an increased demand for all classes of goods, whether imported or locally manufactured. The position still requires explaining and disclosing how much of the London funds have been used directly and indirectly by the Government for equipment and supplies for their various Departments.

"The Minister, in his explanatory note, repeatedly refers to the facilities to be provided for the purchase of capital equipment and raw material. Does equipment mean machinery for local manufacturers, or loes it include requirements for public works, etc.?

"We consider chat any definite refusal of import licences because certain goods could be made in New Zealand would be looked on with decided disfavour by overseas manufacturers, particularly those in the United Kingdom whose trading relations with this country extend over many years. These manufacturers are already trading under the restriction of the present tariff and exchange.

"We presume these new regulations have been framed for the general importer, and would ask what measures, if any, are proposed to control Government importations.

"We think we are correct in stating that New Zealand is the first British country to adopt such an arbitrary measure as the one how in force, and it is hoped for the standing of the country in a Commonwealth of Dominions that this regulation will be set aside as soon as London funds are restored to normal position.

"We recognise tiiat any new regulation such as this will cause a certain amount of alarm, and we trust the administration of it will be conducted in such a manner, as to obviate any hardship on any section ol the community."

"BREAKING POINT IN SIGHT"

BONDS MARKED DOWN

(By Telegraph—Press Association—Copyright.) (Received December 7, 1.15 p.m.)

LONDON, December 6.

Prices of New Zealand Government bonds were marked down sharply as a result of the latest measures in the Dominion. Most issues lost Ito l£ points, and 3 per cent, stocks, 1952-55, quoted at £75, have lost 10 points within a month. The "Daily Mail" in a leader headed "Day of Reckoning" says: —These drastic measures will not cure the disease from which the country is suffering;. That disease is Socialism. The Savage Government has wrought havoc with the national finances, and only increasing exports, the result of the rise in world prosperity, have enabled the Dominion to keep its head above water, but exports for 1938 are already down by £8,000,000 and breaking point is in sight. The Socialists are preparing an unparalleled programme of prodigal spending in a lavish scheme which it is quite beyond New Zealand's capacity to bear."

Recent quotations for New Zealand 3 per cent. Stock (1952-55), ex" interest, were £76 15s December 1, and £77 16s 3d, November 24.

The City editor of "The Times" states that, in effect, the measures are indistinguishable from exchange control, which hitherto has been firmly rejected and disowned by Government spokesmen.

The City editor of the "Daily Herald" says that New Zealand has given France and Britain a significant example by resolutely stopping a Bight of capital at the outset, so preserving the freedom of the people and enabling the Socialist prosperity programme to be continued without interference from a financial clique.