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CONTENTS. Section I. —The Basis of Past Prosperity in New Zealand. Para. Page 1. Influence of Export Prices „. .. .. .. ..(5 2. Influence of Overseas Borrowing .. .. .. .. .. .. 6 3. The Post-war Period .. .. .. .. ~ _ .. 6 Section II. —Causes of Depression in New Zealand. Para. 4. Economic Conditions, 1928-29 .. .. .. .. .. ~ 6 5. Capital Expenditure .. .. .. .. .. ~ .. 6 ft-7. Lack of Balance .. .. ... .. ~ ..7 8. Fall in Prices ~ .. .. . ~ ~ ~ .. 7 9-10. Price Disparities .. .. .. .. ~ ~ .. 7 11. Changed Purchasing-power of Exports .. .. .. .. .. S 12. Farm Costs and Prices of Farm Products .. .. .. .. .. 9 13. Fall in Net Farm Income .. .. .. .. .. .. .. 9 14-15. Indirect Effects .. .. .. .. .. .. ..9 Section 111. —The Loss of National Income. Para. 16. National Income .. ... .. .. „ .. ~ 9 17. Direct Loss of Money Income .. .. .. .. ~ .. 9 18. Total Loss of Money Income .. .. .. .. .. .. 10 19-20. Loss of Real Income .. .. .. .. .. ~ .. 10 21-23. Present Loss of Money Income .. .. .. .. ~ .. 10 24. Summary .. .. .. .. .. .. .. .. 12 Section IV.—The Distribution of the Loss of Income, Money and Real. Para. 25. Export Producers' Loss of Real Income .. .. .. .. .. 12 26. The Unemployed .. .. .. . „ .. ~ . , ..12 27. Wage-earners and Salaried Workers .. .. .. .. .. 12 28. Recipients of Fixed Incomes .. .. .. .. .. .. 12 29. Necessity of Speedy Adjustment .. ~ .. ... .. .12 Section V.—General Effects of the Depression on Public Finance. Para. 30. Post-war Movement on Public Finance .. .. .. .. .. 13 31. Increases in Debt, Expenditure, and Taxation .. .. .. ..13 32. Analysis of Expenditure and Revenue .. .. .. .. .. 13 33. Revenue and National Income .. .. .. .. ..13 34-35. Burden of Fixed Charges .. ~ .. .. .. .. 14 36. Local-body Finance .. .. .. .. .. .. .. 14 37. Position of the Taxpayer .. .. .. .. .. .. ..14 Section Vl.—The Budget Deficit. Para. 38. The Budgetary Problem .. .. .. .. .. .. ..14 39. Decline in Revenue .. .. .. ; .. .. .. 15 40. Expenditure .. .. .. .. .. .. .. .. 15 41. The Deficit . „ .. .. ~ .. „ .. ..15 42. Hoover Moratorium .. .. .. .. .. .. .. 15 Section Vll.—The General Problem of Readjustment. Para. 43. Fall in the Standard of Living .. .. .. .. .. .. 16 44. Level oi World Prices .. .. .. .. .. .. .. 16 45. Overseas Borrowing .. .. .. .. .. .. .. 16 46. Summary of Assumptions .. .. .. .. .. .. .. 16 47. The Fundamental Problem ... .. .. .. .. .. 16 48. Absorbing the Unemployed .. .. .. .. .. .. 17 49. Spreading the Loss .. .. .. .. .. .. .. 17 50. Equality of Sacrifice .. .. .. .. .. .. .. 17 51. Inadequacy of Adjustments already made .. .. .. ..17 Section Vlll.—Exchange and Economic Adjustment. (A) The Mechanism, of Exchange in New Zealand and its Working. Para. 52. The New Zealand Exchange System .. .. .. .. 18 53. Dealings in Exchange .. .. .. .. .. .. 18 54. How Money is transferred .. .. .. .. .. .. 18 55. Changes in Bank Funds .. .. .. .. .. .. 18 56. Balance of Payments .. .. .. .. .. .. 18 57. Exchange Funds Overseas... .. .. .. .. .. 18 58. Determinants of Exchange Rate .. .. .. .. .. 19 59-61. Periodic Changes in Funds .. .. .. .. .. 19 62-63. Other Influences on Rate .. .. .. .. v . 19

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