“WAY OUT OF MESS”

Gisborne Herald, Volume LXVI, Issue 20001, 28 July 1939, Page 5

“WAY OUT OF MESS”

CURRENCY DEVALUATION NEW ZEALAND’S PROBLEM FREEDOM OF EXCHANGE VIEW OF MR. H. G. DICKIE (Parliamentary Reporter.) WELLINGTON, this day. “To devalue our currency seems to be the only way out of the mess,” was the opinion expressed by Mr. H. G. Dickie (Nat., Patea), when he summed up the financial position during his speech in the Address-In-Re-ply debate in the House of Representatives yesterday. The Government, he pointed out, was paying £2,000,000 more for butter and cheese than it was realising this season. It was not really a guaranteed price, because this sum would remain as a debt against the dairy industry account in the Reserve Bank. The outlook for dairy produce next season was not as bright as last year and a further debit of £2,000,000 might result. .“Is” that to be a liability against the producers?” he asked. “I do not think that any Minister can tell me.” Account of the People

The Hon. P. Fraser: It is to the account of the people of the Dominion. The hon. gentleman knows the original proposal was that the debits of on e year would be set off against the credits of the other with a good living guaranteed to the dairy farmer.

Mr. Dickie: The dairy farmer will be told that he is indebted to the taxpayer for £2,000.000? Mr. Fraser: He will not be told that by the Government. Mr. Dickie contended that if the exchange was not pegged down instead of being allowed to rise to its proper level, there would be no debit in the dairy fund. One of the grievances expounded by Mr. J. A. Lee in his famous letter, added Mr. Dickie, was that he had a majority with him a n the caucus in favour of taking over the Bank of New Zealand and that the Minister of Finance, the Hon. W. Nash, declined to do so, while the Prime Minister, the Rt. Hon. M. J. Savage, threatened to resign if members of the party pushed the thing too hard. What advantage, asked the speaker, did the Left Wingers think they could get out of taking over the bank? Did they think it would lend more readily to the people on overdraft? He -had never heard anybody state exactly what the Left Wingers wanted, although the member for Dunedin North, Mr. J. W. Munro, had again advocated the purchase a few days ago.