“WELL-PLANNED RUSH”

Wairarapa Times-Age, 18 October 1938, Page 5

“WELL-PLANNED RUSH”

N.Z. LABOUR’S ELECTORAL SUCCESS LONDON PRESS COMMENT. SOME RATHER DIVERGENT VIEWS. By Telegraph—Press Association—Copyright. LONDON, October 16. The “Daily Herald” (Labour), in a leading article today, says that Nev/ Zealand Labour largely owes its success to “the deliberate, confident, and broad-mined spirit in which it has governed from the start. “It knew what it wanted and was able to get down and work with a wellplanned rush. Its tolerance, understanding, moderation, and good humour dispelled fears that Labour might decrease individual freedom and encourage national disunity.” The “News Chronicle” (Liberal), in an editorial, says: “Mr Savage’s success has heartened progressives throughout the world, the swing of the pendulum has been checked by the prosperity, vigour and competence of a Government which, quite unlike the British Labour Ministry which faltered when it should have stood firm, without delay carried out its social legislation, thus cementing its hold on the loyalty of the mass of the people.” FINANCIAL POLICY. Admitting that “nobody wants to kill Santa Claus at Christmas time,” an editorial in “The Times” (Independent Conservative) expresses the opinion that it has not yet been proved that the critics of the New Zealand Government’s financial policy were wrong. “The test will come when the upward movement, now apparently at its peak, is followed by the inevitable reaction. Few students of the position share the Government’s confidence that they have found a way of insulating New Zealand from an outside depression. Even those most sympathetic with the Government’s aspirations feel that the advance has been too fast and too far in the past three years. "No doubts are cast on Mr Savage’s desire to promote welfare irrespective of class or party, but it is hoped that, in the difficult years ahead, the Government will temper its Socialist zeal with prudence and circumspection and at this time the Opposition should not withhold its goodwill solely on account of differences of economic doctrine.” OPINION IN THE CITY. The city editor of the “News Chronicle” says: “Labour’s success is bound to raise a hue and cry in the city where many regard the event as a portent of the Dominion’s economic collapse. “It is to be hoped that no one will thereby be led to panic and the selling of New Zealand securities. The city is not the place to obtain a really unbiased view of politics or their economic implications. “The weak point is the substantial decline of New Zealand’s London funds. This is partly the result of the guaranteed export prices, payment of which tends to maintain internal consuming power and consequently a level of imports at a figure which the export yield might not justify. “However, the point has far from been reached at which resort must be made to further exchange depreciation. The fact that loans of nearly £40,000,000 are maturing in the next three years must be a strong inducement in favour of the continuation of a reasonable policy.” The “Financial News,” in a leader, says: “It is to be feared that the Labour victory in New Zealand will not be hailed with enthusiasm by New Zealand’s creditors. The Government has admittedly carried out valuable constructive and social work.

“There is no question that Mr Savage has hitherto been batting on an easy wicket regarding internal finance, but external finances are less satisfactory. The Dominion’s sterling resources despite the prosperous period, have been dissipated because of the deteriorating trade balance. The banks already seem to be practising a kind of informal exchange rationing. “There is no immediate danger, unless Mr Savage is encouraged to go to extremes, but the outlook would be brighter if, instead of talking vaguely about insulating the country against depression, Mr Savage showed some awareness that he had the maturity of a £17,500,000 loan to meet at the end of 1939.”