“NOT SHIRKED”

Ashburton Guardian, Volume 56, Issue 17, 1 November 1935, Page 3

“NOT SHIRKED”

GOVERNMENT’S RESPONSIBILITY.

MAJOR DIFFICULTIES FACED.

(Per Press Association). INVERCARGILL, October 31. “It is well to recall some of the major difficulties that faced the Coalition Government at the beginning of the present Parliament, nearly four years ago,” said the Hon. Adam Hamilton, in an address at Thornbury. “When the electors are fully seized witir the magnitude of these problems they should realise the difficulty of the task before the Government. Most people are so keenly interested in their own difficulties that they seldom realise the problems with which public men generally have to grapple.” The first great problem the Government had to’ face was a prospective budget deficit in 1932 of more than £8,000,000. The elector should readily realise the difficulty of bridging this gap. The second difficulty was. that in one year more than £6,000,000 was withdrawn from the Post Office Savings Bank, and in three years more than £12,000,000. The finding of. this money was a huge task, and every depositor got his money when lie wanted it. The third problem was the huge army of unemployed, which had then mounted to about 50,000. The fourth and greatest problem of all was the adjustment of internal costs to prices. Because of the phenomenal drop in the export prices of primary products, unless costs were brought down or export prices raised, our great basic industry of farming would he faced with ruin.

“The adjustment of these problems called for severe and drastic measures, and it will be readily admitted that the Government did not shirk responsibility in this matter,” said Mr Hamilton. “To-day the good results are evidence of the wisdom of the course adopted by the Government.” Pursuing its policy to get internal costs down to meet lower world pricelevels the Government took fairly drastic steps to reduce New Zealand s interest bill, said Mr Hamilton. Even the propriety of some of the measuies adopted was questioned by some of the Government’s critics. To-day, however, although most of those critics’ interest receipts were'reduced, their capital remained intact and was even saleable at a premium. One of the most severe consequences of the depression was the inability of debtors to meet their full obligations to creditors, or mortgagors their obligations to mortgagees. It was essential that this situation should be corrected as far as possible. The following figures showed Die annual saving in New Zealand’s inteiest bill:

National debt (internal) ... i.J.JJJ National debt (London) ... 300,000 Public bodies 300,000 Mortgage debt i’oOOOOO Bank overdrafts 1,000,000 Total £5',000,000