VITAL NECESSITY

Gisborne Herald, Volume LXX, Issue 21112, 4 June 1943, Page 4

VITAL NECESSITY

STABILISATION SCHEME MINISTER’S REFERENCES (P.R.) WELLINGTON, June 4. “It is essential that the value of stabilisation should be understood by all our people,” said the Minister of Finance, the Hon. W. Nash, in the House of Representatives last evening. 51 “To the extent that the sum distributed in wages, salaries, and other income exceeds (he total value of goods and services available for civilian consumption wo run into a dangerous position unless the surplus of income is either taken-out of circulation by taxation or is invested by the recipient in war loans. “If surplus moneys are invested in war loans the Government is enabled not only to moot alj its accounts for war services and equipment, but to hold price levels ;it. points that will be good foundations for the post-war period. The transfer of productive activities into goods and services for civilian coitsipuption and the use of war savings in the post-war period ,-.vill stimulate demand, whilst the, stabilisation procedure will ensure a continuance of evefi prices.

“To 1 ho-listen't; that we consume less of our own production the more there will he available' for those in need in Britain and.the other United- Nations. To the extent we save pur shillings and pounds wo will hold up the demand for imported products and ease the load on shipping and the pressure on production in the United-Kingdom, releasing more workers there for a 100 per cent war effort. “The need is so great, the advantages so real, that- I- make no apology for again emphasising the imperatives of stabilisation, mid the consequent necessity for' all sections of the com inanity to invest to the. limit in the war loan and national savings.”