OUR MONEY SYSTEM

Taranaki Central Press, Volume IV, Issue 445, 29 May 1937, Page 7

OUR MONEY SYSTEM

GOVERNMENT’S OBJECTIVE Basis On Production London, May 20. Questions concerning New Zealand's internal policy were put to the Prime Minister, Mr Savage, wnen he was interviewed by press represent.atives upon'his arrival in London. “Ne\y'Zealand, like mojt countries, :e capable of producing almost without end,” said Mr Savage 'Production is not enough. We want distribution as well. It is no use increasing production unless,, at the same .ame, we can increase buying power, and that needs considerable negotiation before it can be brought about. Whatever is in the way has got to get out of the way.” "And what,” he was asked, “is in -he way?” “A multitude of things,” replied Mr Savage, “including the interest of i.he few against the interest of the many. Our ambition is to see that science and invention are used for the benefit of the rank and file of the people. •New Zealand is entitled to have an equitable distribution of its own production. It is not going to be harnessed to the chariot wheels of any country. Our objective is to have our own money system built upon our own production. There is no reason why the money system of New Zealand —andi it does belong to New Zealand—should know the arguments about inflation and deflation, but as long as you stick to reality, and build j money on goods and services, you are I going to stray far from the narrow path.” "WJiat answer do you give to those ’ who assert that the policy of your Government is driving cash out of New Zealand into Australia,’ was another question. "Well,’ replied Mr Savage. “We have something left. That story is getting worn. I have heard it many times. If you refer to the stock exchange ot New Zealand—and there is no better way of getting at it—you w ill soon find out that money is not Laving New Zealand ” "Are you in favour of the modification or the continuance of the Ottawa agreements ” was the next query. Mr Savage replied übat, in vie w of the approaching Imperial-Conference, he preferred not to say much on that subject. “But,” he added, “I do not. j know of any agreements in existence | to-day that are satisfactory. I ihink. I it is possible to make agreements be- | tween nations and particularly be_ 1 tween the Commonweal! h of Nations and to. have be tter agreements than I before. I would not’say that the Ot- i tawa agreements are ideal”