HINT OF A LOAN

Ashburton Guardian, Volume 54, Issue 190, 25 May 1934, Page 3

HINT OF A LOAN

RELIEF OF UNEMPLOYMENT, REMARKS BY THE MINISTER. iPer Press Association). AUCKLAND, May 24. The possibility of the Government raising a loan to assist in the reduction of unemployment was mentioned guardedly by the Minister of Employment (the Hon. Adam 'Hamilton), when replying to an Auckland deputation. "A lot of suggestions are made to us for dealing with the unemployment problem," said the Minister. , "It is our job to see whether w© can fit the,m in in a practical manner with the funds available. After all, we may have to find further funds. We may decide to ask the Government to find us some loan money to assist us with some of our problems. "You say some of our systems have failed," continued Mr Hamilton. "It does look a bit as if some of our economic systems, some of our monetary systems and some of our unemployment schemes are on trial. The unemployment problem is pretty sticky and has given evidence that we cannot get rid of it quickly.

"We are here to meet you people, and to see if we can better the position of the unemployed. We have to take all the relevant facts into consideration. We have a big responsibility in handling the unemployment fund. We have practically spent a year's income, and we do not feel like recommending an increase in the tax."

The Minister said he was interested in a suggestion regarding the provision of money free of interest. "We could get money free of interest," said Mr Hamilton, "but we would have to watch the result. The scheme might have in it a 'back kick' you do not anticipate. I know a scheme was worked with Bradburys during the war, but even then it had unexpected results. Such a scheme might discount all the money in existence, in our country at least." The Minister' said the Unemployment Board was doing all it could to get money into circulation. The No. 10 building subsidy scheme, by an expenclituro of £400,000 or £500,000, had stimulated the circulation of about £5,000,000. "It is said that the No. 5 scheme has been a failure, and there is an element of truth in.'that," continued the Minister. "If we can get men on fulltime work at standard rates, that is what we want. We will endeavour to do that if we can. .Nearly half our men have gone off the No. 5 scheme: