GENERAL ELECTION

Ashburton Guardian, Volume 56, Issue 28, 14 November 1935, Page 3

GENERAL ELECTION

MID-CANTERBURY SEAT. MR woone AT Assaunron. - PLANsz m DEMOCRAT POLICY. ATTITUDE ON WHEAT QUESTION. There was an attendance of about .100 peeple .in St. Andrew’s Hall last BVening when the Democrat candidate .for the Mid-Canterbury seat (Mr \V. H. “’OOds) continued his campaign, The ..Very' wet weather undoubtedly greatly affected the attendance. - The Deputy-Mayor (Mr E. H. Orr) presided and introduced the candidate, who was received with applause when he stood up to Speak. Mr Woods was given an attentive hearing. Among his reasons for asking for support in this election, Mr Woods said, was that he felt from a close study of the affairs of the 'country that it was time that something was done to gainsome idea of where the country was going, to get a better perspective of the state of affairs for the future,: and to obtain security for anything} which the people attempted to per-J form; He considered that. the presentl Government had failed, and should be put" outgof-oflice, and. hthad pledged! hiniselfito‘mhatieffect and no further; He would not be tied hand and foot. The ideal was to have no party, but he realised that it was useless to attempt to do any good without being attached to a party in these days 3 to be otherwise, was to be like a yoice crying in the wilderness. _ Plan for, Security. The Democrats, he said, had a plan which could be summed up practically in the word “security.” Most people were living in an atmosphere of inse—curity, brought abOut by the trend of legislation. The Government was doing things now which it had been urged repeatedly to do in the past three years and had declined to do. He went on to refer to the work of the Government in the depression period and dcclared that the recovery of recent times was not due tothat work. The Goyernment’s intentions had been good, but he was not concerned with intentions, but with results. Mr Woods went on to refer to the creation of innumerable boards and commissions and said that in this the Government had shirked its duty. He also commented on the number of mom. bers of the Government and officials Who had gone abroad during the past few yea-rs and said the cost of these journeys could better have been spent in other directions. ‘ The candidate referred to the treatment by the Unemployment Board of the local unemployment committees, and said that at Ashburton the committee had designed because of the manner in which its representaions and suggestions for local administration had been over-ruled by the Board. '

Taxation had increased to an unpre—cedented extent in New Zealand, and the burden was being placed on everyone to assist the Government in its experimental legislation. Confidence had been shaken, there was no security of contract, and trade and industry were struggling 'alorig under heavy burdens. He added that there was a tendency in‘the Government to obtain control of business to an extent unprecedented in any country, and that the legislation of today was mainly prompted by -thrce academic gentlemen who, while (clever men, had no practical experience, .and who were frankly avowed socialists. Overcoming Unemployment. - Discussing unemployment, the candidate said that the number- of workless people had increased by 10,000 since 1932. There had been a slight reduction from last year, but the Government was finding the increase so much _that a new basis of showing the figures had been made. The Government contended that it was not fair that the subsidised workers should be included and would put them in a separate class. The speaker pointed out that only registered men. could obtain subsidised work and only unemployed men should be on the register. The Government admitted that it was unable to solve this problem. There had been four Ministers in charge, the chairman of the Board had been changed, and be (Mr Woods) contended that it was impossible for any Government _to' obtain a grip on problems with all these changes taking place. A plan for utilising capital works and by capitalising the unemployment fund, giving much better assistance to the unemployed than under the present system had been suggested by the De—mocrats, who had been assured ‘that this could be done by way of borrowing and that the scheme was based. on sound lines. The Government had been urged on a number of occasions to adopt a similar proposal. The capi—tal works, under "the Democrat scheme, would, before they received Government support, have to be sound, and show a good prospect of becomingreproductive or self-supporting. - The Administration em. The policy of borrowing must be; carefully guided at all times, Mr Woods 1 said, but the Democrats’ proposal had been subjected to close research and the opinion he had formed was that it was worth a'decent trial. He. quoted figures _to show that the cost of administration of the fund had increased from £55,000 to £133,000 in four years and he declared that there was no justification for that. He commented upon the fact that there was a. disparity in the allocations made for relief in the country and smaller towns, compared with those given in the cities, at least 68 a week per man, and in addition the city men received rations. It was suggested that rents were higher in the cities than in the country towns, but he had made inquiries and found that this was not so, at least so far as Ashburjt'on was concerned.

The result ,was that families a were migrating from the country to the cities in order _to obtain the benefit of the larger payments. Discussing the Unemployment Board balance-sheet, he said that the sum carried forward at the end of the 1933-34‘financial year was about £600,000, while that for the end of the 1934.05 year was £1,332,943. An item of £1287 appeared for interest on loans and he stated _that the Board ‘should not have money invested when 'it was needed for the relief‘of unemj ployment. ] The exchange rate problem-was dealt iwith at length by the candidate, who rquoted the opinion of the Prime Min}ister, expressed in 1931, that the rate, ithen 10 per cent, was a considerable {factor in the stagnation of trade, had iincreased the cost of living, and that lany temporary advantage was cancel;led by higher taxation and costs. Mr i‘Voods also quoted opinions given by \other' members of the Government to lthe effect that a high exchange rate iwas not of benefit to the country. iWhat was so when the exchange was ilO per cent wasy~just as forcible now, when the rate was 25 per cent, yet the Government had made the increase. The Government was coming round to the Democrats’ way of thinking, for the Hon. R. Masters, speaking at Wanganui, had said that any reduction would have to be made gradually. The Democrats were in favour of a' reduce tion, 'but they recqgnised that it would have to be done carefully and gradu—i ally, in close co-operation with. the reserve and; trading banks. The speaker added that the high :rate was uneconomic, \vas injuring New Zealand’sgood name in its only market, Great Britain, was a virtual breach of the OttaWa Agreement, and was increasing the amount of and cost of New Zeala-nd obligations and loans overseas. The interest on'State loans overseas had increased by £2,000,000, and if the rate were allowed to remain the national debt abroad would be increased by $340,000,000. The Government had reduced the debt by £2,100,000, but it had cost it another £500,000, which was taken from reserves to pay the exchange. While the rate of Interest . on internal loans had been reduced, the Government and local bodies were still paying anything up to. 6 per cent on, their overseas commitments. The exchange had been raised against the advice of the Treasury, the then Minister of Finance and most of the banks. Bounty on Produce.

Mr Woods went on to show that the} exchange rate did not benefit the far-i mer at the time when he needed it; most, when prices were low, and he e‘x-j plained that the Democrats’ bounty} Scheme, which, he said, was more suit—l able and would give the desired re-l suit without any of the adverse rc-; sults of the 'high exchange. . Mr Weeds advocated the removal of, many of fiche restrictions on privatei enterprise, and said that where State enterprises were in cdmpetition with: private concerns, they should pay 'the taxation. and be subject to the same restrictions as the private ones. There should be a reduction in the number of boards, which were expensive, and Parliament should govern the country. Mr Woods went on to quote figures showing that Government department expenses had increased during the depression 'years. The Government had accused the Democrats of touting for i‘rotes, but he did. not remember such an orgy of promises of expenditure made on the eve of an election as ‘was being made now. ' Mr Woods gave an assurance that ‘the Democrat Party would not inter—fere with the sliding scale of duties ‘on wheat, no matter what his opiponents might say to the contrary. i Mr Woods referred to the question 10f the reduction of interest on local ‘body loans . overseas and said that iwhile numerous representations had [been made to the Government to have ’the rates reduced in conformity with treductions made in the countries where ‘the loans were domiciled, no move had been made to rectify the position. Touching on the tourist trade, which had cost the Government over £IOO,OOO ‘in a year, Mr Woods. said that the fostering of New Zealand as a'torrl'ist resort should be handed over to private enterprise, which, he thought, could much more effectively handle it lthan the Government had shown itself 'capable of doing. ‘ i The candidate referred also to the Government Superannuation scheme, [the Democrat health and pensions pro- , pesals. He said that the. party advoicated the schools taking pupils fiat five years instead of at six i years. He concluded by quoting a long ilist of increases made recently in the isalalries of Government servants, apart lfrein salary cut restorations that had ‘becn brought in a few weeks ago. l in reply to a. question, Mr Woods isaid that the Democi'at Party would ;have to meet the national debt posi—ltion as it found it, but the burden ‘of taxation would be the first thing ito he reduced. Then the national debt icould be attended to. 3. At the close of the meeting'a mo‘tion of thanks to the speaker and conlfidence that he was a fit and prOper person to represent Mid-Canterbury was carried, on' the motion of Dr. J. R. Wells and Mr G. A. Gilchrist. . A vote of thanks was accorded the chairman for taking charge of the meeting. ' (Extend-ed report, published by arrangement.) MR CAR'R AT RAKAIA. There were about 100 people at the meeting at the Ralcaia. Town Hall last evening, when Mr J. Carr (Nationalist) spoke in furtherance of his candidature. Mr W. Strachan presided. At the close of his address Mr Carr was accorded a vote of thanks, which was moved by Mr J. S. Connolly. MR HERRING’S MEETINGS. Mr H. E. Herring, the Labour candidate, spoke at Scdgemnere last evening, when heavy rain fell, and there was an attentive audience of 20 people. er J. _TuParkin thanked Mr Herring

for all'izlstl'uetive address; Mr \V.’ J. Chambers gpre'si'ded. ' v - 5. {l’o a further meeting at the South. budge Town Hall 140 people attended 1501 been: Mr Herring. The meeting was enthusiastic. and a motion of thanks for the address was moyed by Mr“ J. P. McEved'y and seconded by Mr ‘H‘. Hubbard. Mr F. H. Greenwood preslded. . QUESTIONS FOR MR COATES. MR H'ISLOP ON GOLD RESERVES. HAWERA, This Day. Twelve hundred electors were addressed by the Leader of the Democrats (Mr T. C. A. Hislop) at L'Hlawera last night, when he criticised the methods of the Minister of Finance in preparing his ibudgets. He said that Mr Coates had either overspent or overtaxed When his job- was to balance income and expenditure and reduce VLX‘ 'ation.’ A‘Ccordingly in the last Budget 'Mr Coatesat first alloWed £200,000 for supplementary estimates, leaving a sur—}plusof £13,500, but in the dying :hours of the session he made extra ‘grants, bringing the amount to £648,487, so that he was £400,000 down. before the year started. The Democrat policy has been criticised ,in a spirit of destruction or in a, spirit of “It can’t be done; it is just a gambler’s throw ;' it is touting for votes.” “We have been accused of touting for votes,” said Mr Hislop, “but I leaveit to you to decide the significance of the Government’s last-minute rush of promises. Those are-promises; that are not going to, fool tlie‘peeple' any longer.” ‘ ’ Attacking the statement made by Mr Coates regarding the compulsory acquisition of gold held as security for payment of the trading banks, creditors, and note-holders, Mr Hislop chal—lenged Mr Coates to answer three questions:—— . (1) Did the Government of Canada or of any other country :pay mr gold taken in notes of a currency which that Government had already depreciated by political pressure. (2) Is it not a fact that in every other country gold taken from banks with its attendant profit was handed to a central bank as security for the banks’ obligations to the public and their deposit Ors, instead of being usedin a large measure, as was done by Mr Coates, to balance the Budget. As a result of Mr C'oates’s operations, what would the value of a reserve bank note be should England revert to the gold standard, which may occur any time? The last question, said Mr 1115101), was not an academic one, and the entire community and local bodies who had loans and interest to pay at London wcre entitled to an answer.