Walter Nash - Minister of Finance

Minister of Finance

When Labour, led by Michael Joseph Savage, won the 1935 elections Nash was appointed to Cabinet as Minister of Finance, although he also held a number of more minor positions. He was ranked third in the First Labour Government, with only Savage and Peter Fraser above him.

New Zealand's economy was in poor shape at the time of Nash's appointment as Finance Minister and he was very busy for the early part of his ministerial career. Nash introduced a number of substantial changes, in an attempt to improve the situation, including the nationalisation of the Reserve Bank of New Zealand. In 1936 Nash departed for England to conduct trade negotiations. He also visited Berlin and Moscow.

Nash resisted the immigration of Jewish refugees to New Zealand, citing a concern that "anti-Semitism, never far from the surface, was very apt to emerge in the case of the talented race whose members can often beat us at our own game, especially the game of money making."

After returning to New Zealand he became involved in disputes within the Labour Party about economic policy. In particular he was heavily criticised by supporters of the social credit movement who wanted their views adopted as Labour Party policy. Nash was also attacked by the more radical socialists in the party who saw Nash's pragmatic economic policies as too moderate. Nash, however, was supported by both Savage] and Fraser and emerged relatively unscathed. He gained the additional responsibility of implementing Labour's social security plan.

With Savage seriously ill the first years of World War II were difficult for the Labour Party. Further problems were caused by John A. Lee a Labour Party member who launched strong attacks on its economic policy. Lee was particularly vicious towards Savage and Nash. Peter Fraser became Prime Minister after Savage's death and Lee was expelled. Nash, himself, reluctantly abandoned his earlier pacifism, deeming the war a necessary one. For a time Nash served as New Zealand's diplomatic representative in the United States. At the end of the war Nash attended the conferences to create the United Nations and also recommended that New Zealand join the International Monetary Fund.

As the 1949 election approached, however, the Labour government was becoming increasingly unpopular. Industrial strife and inflation] were major causes. In the election the opposition National Party, led by Sidney Holland, won power. Nash, however, retained his seat.