TRADE CONTROL

Wairarapa Times-Age, 25 January 1939, Page 6

TRADE CONTROL

THE GOVERNMENT’S POLICY DEFENDED BY MR NASH. ADDRESS AT NATIONAL CONFERENCE. /By Telegraph—Press Association.) WELLINGTON, This Day. The origin and procedure of the Government’s policy of control of exchange and selection of commodities for importation into New Zealand were dealt with in detail by the Hon W. Nash (Minister of Finance) this morning, when he addressed the national conference convened by the Associated Chambers of Commerce, in conjunction with the New Zealand Importers’ Federation. Mr Nash said one thing which made exchange control imperative was the decline in the London funds. This' was due, he continued, to three factors: — (1) Repatriation of funds left in New Zealand subsequent to the original imposition of an arbitrary exchange fund. (2) A concerted effort by people to send money to other countries in order to obtain higher rates of interest.

(3) Over-importation. Defending the Government’s policy, Mr Nash reiterated that the Government’s intention was not to reduce the standard of living. Referring to the sources of the drain on the London funds. Mr Nash said there were five classes of expenditure which should be given preference. These were:— (1) Interest payments on national and local body debt. (2) Interest on private investments. (3) Overseas charges such as salaries, concessions, insurance policies, etc. (4) Travelling expenses. (5) Accelerated expenditure on New Zealand’s defence. There was also the necessity to augment New Zealand’s funds in London. All this, the Minister added, meant a fairly drastic cut in imports into the Dominion and the Government’s procedure was to select the imported commodities which were most desired. It was essential that New Zealand must make more goods within the Dominion, and therefore the selection of imports should be applied to that purpose. At the same time, New Zealand desired to help the United Kingdom to the utmost. The objects of the Government’s policy were threefold —to meet New Zealand’s commitments in London, to reduce imports and to maintain living standards in the Dominion. Mr Nash, assured the meeting he would do all that was humanly possible to remove any injustices or anomalies that might arise. Concluding, he ex- . pressed an opinion that the abolition of booms and depressions could be secured. A determination to do so was in the mind of the Government, and, said the Minister, “I would love to try to co-operate with you to do it.” Mr Nash was cordially thanked for his address, after which the meeting went into committee.