INFLATION DANGERS

Wairarapa Times-Age, 2 March 1939, Page 7

INFLATION DANGERS

POSITION OF THE STATE FINANCES + HON A. HAMILTON WARNS TAXPAYERS. RESERVE BANK RESOURCES STRAINED. (By Telegraph—Press Association.) NEW PLYMOUTH, March 1. "In a Government principally distinguished for lack of responsibility and unfairness it is not surprising that the Prime Minister should be so consistently unfair in his criticism of past Governments,” said the Leader of the Opposition, Mr Hamilton, in New. Plymouth tonight. “The Prime Minister has assumed credit for a host of benefits not of the making of his party. It is easy to be abusive in seeking popular and passing notoriety, but the people of New Zealand since the election have had the truth forced upon them by drastic Government action, and the sincerity of my statements will soon, be more generally realised. “The financial outlook for the taxpayers is anything but happy,” said Mr Hamilton? “The full strength of the Reserve Bank, intended for use in times of stress, already appears exploited, the Government having strained its resources with advances amounting to £17,000,000 and with further, investments at £3,500,000, making the immense total of more than £20,000,000. Since this is so, it will not be surprising if in its embarrassment the Government decides to write up the assets of the bank in some undesirable way. “This situation has been brought about by the unsound policy of the Labour Government and by that alone. Even capital that might have assisted has been hunted out of the Dominion deliberately. Industry and thrift have been discouraged and idleness has been placed almost at a premium. Such a state of affairs deserves the sober reflection of every taxpayer. “The whole trend of the situation must force everyone to the conclusion that, even if accentuated inflation is not yet .with.us,, it has already begun and cannot be wholly staved off much longer.”