MR. SEMPLE'S THEORY.

Hawke's Bay Herald-Tribune, Issue 172, 7 August 1937, Page 4

MR. SEMPLE'S THEORY.

No doubt Au&tralian trade-vmion officials aiid Labdur ieaders wero ltnpressed when tiae Hon. R. Semple informed them that control ot finance is the kay to the prosperity which New Zealand is now enjoying. But Mr Semple did not mention that N^w Zealaiid's exports for the production year «nded June 30 reached the record vaiue of £64,621,000, or appi'Oxiniately £41 per head of population. Nor did he state that experts for the lirst six months of 1037 were £8,000,000 greater than tor the same period of. 1036 and £15,000,000 greater than tor the first half of 1935. Lt is obvious that New Zealand's prosperity is dtie to her record exports and to no other cause. Mr Semple's theory of how to cause prosperity by monetary control is not likely to wxn many eonverts in Australia, Whicli was enjoying good times before New Zealand turned the corner. Unemployment in Australia has fallen from the peak of 30 per cent. 111 June, 1932, to 8.4 per cent., which is practically normal. In Western Australia it is now as.low as 5.4 per cent. Deposits in the ten Austraiian leading banks have reached a record total well above £300,000,000 and dre in excess ot advances by about £50,000,000. London funds - to meet debt and other commitments havt mcreased iu the last year by approximately £10,000,000, and this figure c, will be further increased by the expected favourable trade balance of morb than £30,000,000 this year. TbeSe facts are sufhcient proof that Australia is enjoying a high degree ol: prosperity and that Mr Semplo's political advice is unnecessary.