Untitled

Hokitika Guardian, 17 May 1932, Page 4

Mb Neville Chamberlain, Chancellor to the Exchequer, recently in the course of an address to the bankers in England, referring to the, depression said that tariffs were not a panacea-; they must-be combined' with the Government’s monetary policy. Even that was not enough for, if the plan to raise sterling prices by a policy of reflation were to suceeed, there must be international co-opera-tion. Mr Chamberlain also hinted tliat further drastic reductions in expenditure might be necessary. Tlius it is clear that the rehabilitation P r °- cess is complex; it is not a case of doing this one thing, or that other, to secure economic salvation. A number of things must be dene at one and l the same time if a good recovery is to be made. That should be obvious, of course, when we remember ‘that the thing we are trying to cure was not caused alone by monetary policy, or tariffs, or War reparations ,and debts, but by the combination of thei’e and other factors created by War waste, and post-War folly of economic nationalism. Tn Non- Zealand, the policy of the Coalition Government - lia,s followed much on the lines set down by Air Chamberlain. The chief objective m far, pursued because it was with'n the Dominion's reach, has been to reduce costs and so attempt to pro,o;\rve the productive power of indnstrv, and particularly primary industry on which New Zealand is so largely dependent. The Government hrs hesitated i<"* initiate monetary reforms alone and its caution seems wise uhon we hear the Chancellor of the Exchequer declaring that Britain herself could not, proceed alone but •must 'sec”Te /iniomatinnal cn-opera-lion. The New Zealand Government hr seeking to have the whole question of banking, Mirrcney and prre 'stabilisation pin.-’ (1 on the agenda naper at Ottawa, and there won 1:1 undonh*'ally he much more goner:: 1 accetd.anee of such tslopn taken n, s part of an Imperial or intern;.tinnal sterling bloe, than if taken sol.). Now Zealand Is

also seeking to improve trade through Imperial reciprocity and there is no ■need to speak of her drive for economy. Thus, it is seen that the British aind New 'Zealand Clovernmenes are pursuing the same general lines ot policy, seeking to reduce costs ard raise prices, and so .end the maladjustment which makes the depression.