INSULATION POLICY
LONDON FINANCIAL PAPER’S COMMENT ADVICE Tp MR SAVAGE. FRIENDLY WARNING OFFERED. By Telegrapn—press Association—Copyright. LONDON, December 9. “Mr Savage’s latest utterances show that the import restrictions are not an emergency device to protect sterling funds till the danger of over-importing is removed, but a permanent expression of the Government’s insulation plan,” states the “Financial News.” “Nevertheless, insulation is impossible, specially in New Zealand, which is a specialised producer selling its output abroad. If incomes are kept up by lavish spending, depreciation of the currency is inevitable when external assets are used up, while an endeavour to postpone the evil day by subsidisation of exports will be an enormous strain on the national finances which ultimately will be likely to produce monetary inflation accentuating the depreciation of the currency and reducing the standard of living by making imports dearer and increasing the internal burden of the external debi charges. “This is elementary economics which is not a disservice to point out to Mr Savage. We trust Mr Savage will not insulate himself from friendly warnings.”
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Wairarapa Times-Age, 10 December 1938, Page 7
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176INSULATION POLICY Wairarapa Times-Age, 10 December 1938, Page 7
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