QUESTIONS OF FINANCE

Hawke's Bay Herald-Tribune, Issue 180, 17 August 1937, Page 6

QUESTIONS OF FINANCE

Since it was mainly in his capacity as Minister of Marketing that the Hon. Walter Nash undertook his mission to the Old Country there was perhaps 110 great call upon him, wheli speaking at Auckland on Saturday' last, to deal at any great length with matters of national finance. Still, the portfolio of finance is by niuch the most important of those he holds, so that it may be worth while to note what he had to §ay, even if only incidentally, on the subject. In the first place, he gave a scarcely needed assurance that New Zealand' s credit on tlie London money market still stands high. As a matter of fact, British investors in State securities of any of the oversea dominions do not concern themselves very much with the colour of its Government of the moment, unless it shows itself plainly as running absolute riot with the country' s finances. Their reliance is upon the productive and consequent taxable capacity of the country and its people. Anyway, Mr. Nash says there is no intention to test the question by asking for' any' fresh London loan money. Mr, Nash then went on to say that- with the financial magnates he met he had "discussed in full our financial policy and its implications." What most of his own people will ask is> • why he has never done the same with them. So far they have been vouchsafed only the very .vaguest and sketchy outlines of what that policy is, while as to its many possible implications practicaily nothing whatever has been said. We have, in fact never had a Finance Minister who has taken the people so little into his confidence as has the one now holding office. Some more definite disclosure of his party's financial and monetary policy and plans for carrying it into effect was .expected when he presented his first Budget a little more than twelve months ago. Those expectations were badly disapp'ointed, for the whole Budg et was cast on the old lines of taxing, borrowing and spending, with the general tax-collec-tion— outside a big increase in' unemployment tax — for the year put up by something lik e We are therefore sadly in need of some fuller and more intelligible exposition of what this so mysterious and carefully guarded financial and monetary policy really is and the manner in which it is to be brought into practical operation. Mr Nash is frank enough to indicate that what he had to tell these oversea financiers was received by them with some show of doubt and misgiving, and this can only whet the naktral anxiety of the people most directly concerned to learn what it is he told them and so gain some better knowledge of what they have to expect for the future. Our Minister found himself at Auckland able to say "quife definitely" that what his Government is doing is being watehed with the greatest interest overseas. This may well be the case, though perhaps "curiosity" rather than "interest" would be the more apl word. These big folk on the other side of the world are doubtless, when they have time to spare to think about us at all> a good deal intrigued with the idea of an entirely inexpert and inexperienced band of enthusiasts getting out on what we have been led to under stand in a hazy way will be an entirely new experiment. They are good enough to say that "the realisation of the theories advanced may be accomplished much more easily in a small country such as this," and they evidently regard its people, and its taxpayers in particular, as the white mice and the white rabbits upon which like risky experiments are conducted in the realms of medicine and surgery. The great trouble for us, however, is that it is quite impossible for us in this little country to isolate ourselves in any such way, especialiv when we are almost entirely dependent for our prosperity on trade \yith countries that will have nothing tc do with such theories. However, our Minister of Finance will within the next few weeks have opportunity to fulfil his chiefs frequently repeated promise of "laying the cards upon the table" and it is to be hoped that it will be fhce upwards for all to see, Hitherto they have been kept well up the cpnjurer's sleeve. Mr Nash has had a very busy and exacting ten months of it awayfrom home and may well be left in peace to gather up the financial reins again and formulatetlie Budget for which all are so anxiously waiting. Jpon it hc sHuld be able to oring to bear many valuable lessons he has bad opportunity of learning durinsr his lengthy sojourn anroad.