MR THEODORE'S VIEWS

Daily Telegraph (Napier), Volume 59, Issue 229, 30 October 1930, Page 5

MR THEODORE'S VIEWS

United Press Assn. Electric Cable. Copyright

BANKS' POLICY OF DEELA= TION BLAMED. Caucus At Canberra.

CANBERRA, Oct. 29. Mr T'heodore, who is taking part in the caucus discussious and wlio is prepared to rejoin the Ministry if invited, declared in an interview that the acuteness of the economic depression was due to the banks' policy of deflation, which he described as a growing menace, The time had come when they should call an immediate halt to deflation and by reversing ihe monetary policy should travel on the other road for some time. A judicious extensioh of credit would. lead to increased puroiiasing power and a revival of internal trade and would give secondary industries a chance of availing themselves of the recent tariff protection. The hanks' . policy of endeavouring to restore tlie Australian sterling to par value with English sterling should be abandoned, as it is threatening the progress of all businesses and mdustries. "We shall have to accommodate ourselves to a depreciated pound as compared with English sterling. This depreciation may go to the extent of tventy per cent," he added._ "I think it virtually impossible to avoid a heavy deficit in this year's Conimonwealth accounts." I