NEED TO ECONOMISE

Evening Post, Volume CXXVIII, Issue 26, 31 July 1939, Page 9

NEED TO ECONOMISE

NX GOVERNMENT "LIVING BEYOND HER MEANS" COUNSELS IN LONDON (By Telegraph—Press Association—Copyright.) LONDON, July 29. Most commentators consider that the market has at last turned the corner and that, barring political shocks, there should be a steady rise in prices accompanied by an expansion of business. The settlement of the New Zealand loan has removed one cause of weakness from the gilt-edged market. The "Investors' Chronicle" describes the terms of the New Zealand loan as an ingenious compromise necessitating economising on the part of the Dominion. Britain does not object to the Dominion seeking Utopia if she can affor-d it, but when she is living beyond her means Britain is entitled to suggest a curtailment of expenditure, specially where Britain's own business interests are affected. British exporting interests appear to have come out worst in the bargaining. The "Economist" similarly insists that while Britain does not wish to interfere with New Zealand's internal policy, Mr. Savage must associate it with the hard facts of the larger world. New Zealand is the least able of all countries to afford economic self-suffi-ciency, as the level of her internal costs is divorced from the trading position.