BALANCED ECONOMY

Wairarapa Times-Age, 19 June 1939, Page 5

BALANCED ECONOMY

MR NASH DEFENDS LABOUR POLICY

TALK OF BLACKMAIL

Address to London Chamber of Commerce

NEED OF BUILDING UP POPULATION AND INDUSTRIES

FULL. PART IN ECONOMICS AND DEFENCE OF EMPIRE

By Telegraph.—Press Association - -Copyright. (Received This Day, 9.35 a.m.) LONDON, June 18. The address of the New Zealand Finance Minister (Mr W. Nash) to Hie London Chamber of Commerce was mainly an historical account nl events leading up to the import restrictions, which he said were forced on the Government by the loss, within a- little over a year, of sterling funds amounting to .121,000,000. This was partly due to an abnormal rate of importation and partly to the withdrawal of funds. The Government could have reduced expenditure and made a ent in wages, as oeenrred. in 1931. This would have achieved Hie desired result at a eosl of cruel hardship to the mass of the people. 'l'he Government's policy was the best alternative. Though it meant a breach of the letter of the Ottawa Agreement it had not broken the spirit thereof, for the Government had no other choice if it was resolved to meet, debt obligations. Mr Nash added that some people in England felt that New Zealand should remain agricultural, but this would mean widespread unemployment and depopulation. The Government aimed at building up a balanced economy, based on better living conditions, with a rising population playing their full part in the economics and the defence of Hie Empire. AH marriage, health, and business statistics showed that the Government was succeeding.

The “Financial News” states that Mr Nash is clearly pressing for a trade agreement, giving New Zealand a share in the British market while providing for increased New Zealand ? purchases of United Kingdom goods.

“REYNOLD’S NEWS” ATTACKS CITY FINANCIERS SORDID INTRIGUE THAT MUST BE DEFEATED. NEW ZEALAND BRITAIN'S BEST CUSTOMER. By Telegraph—Press Association —Copyright. (Received This Day, 10.20 a.m.) LONDON, June 18. “Reynold’s News” says the New Zealand Government is being told that it must continue to over-im-port, further reducing the favourable trade balance, simultaneously purchasing the financiers' help by agreeing to their terms.

•■The city,” the newspaper adds, “is blackmailing a Government whose only fault is that it is Socialist. Despite the fact that New Zealand is already Britain’s be,st customer, the conversion at present has not the slightest chance of success. Bankers intend to demand their full pound of flesh. Not a penny will be lent, and the British Government is refusing to sanction long-term credits while Labour rules. The nation is being held to ransom in the interests of the British moneyed and trading . classes. It is necessary to reveal ,the full facts in order to defeat a sordid intrigue. “Parliament,” it is added, “can force Sir John Simon (Chancellor of the Exchequer) and Mr Montagu Norman (Governor of the Bank of England), to give New Zealand a, square deal. The Dominion has shown that it is whole-heartedly behind its Government, for which reason it is wrong for the British Cabinet to step in between a self-governing Dominion and its leaders.”