SOCIALISM THE GOAL

Ashburton Guardian, Volume 58, Issue 301, 1 October 1938, Page 9

SOCIALISM THE GOAL

MR LEE’S BOOK

FRANK EXPOSITION. LABOUR A 3 THE AGENT. HOW DOUGLAS CREDIT HELPED. NEW VIEW OF PUBLIC TRUST. “Socialism in New Zealand,” is the title chosen by Ml’ J. A. Lee. M.P., Parliamentary Under-Secretary to the Minister of Finance, for his new book (says the “New Zealand Herald”), hi it he seeks to show that New Zealand is already far gone in socialism and destined to go the whole way. The Hon. D.- Cr. Sullivan recently accused the National party of “raising the bogey of socialism,” but Mr Lee in his book accepts socialism as a partly realised fact and makes its complete realisation his political objective. “New Zealand during the next few years,” he writes, “should tell to what extent a State can speed toward socialism along the democratic road, for s'peed to socialism we will.” Henco Mr Sullivan’s “bogey” is Mr Lee’s goal. Mr Attlee’s Blessing. If other Labour leaders besides Mr Sulliyan are shy of coming out in their true colours, the Rt. Hon. C. R. Attlee, leader of the British Parliamentary Labour Party, does not mince matters. In an introduction to the book Mr Attlee writes: “Labour men and women especially have watched with admiration the vigorous way in which the New Zealand Labour Party, having received an emphatic mandate from the people for a clear and definite udvance toward socialism, has proceeded to implement its election pledges. They have been heartened by the great success achieved. Mr Lee in this book describes these achievements and surveys the great advances which have been made toward the Socialist Commonwealth.” Reliance on Destiny. That is how Mr Attlee sees it, and how any plain man will view the Labour Party’s trend. To save those in his party who prefer camouflage, Mr Lee opens with the statement: “This bpok is not an official interpretation of the tendencies inherent in Labour policy, but merely one man’s opinion.” But that man stands on the fringe of the Cabinet, is the reputed leader of the largo Left wing of the party, and is often discussed as likely to fall heir to Mr Savage’s mantle. What he has to say should therefore be heeded. Mr Lee declares again and again that socialism is not a religion with him. He is no .doctrinaire. Yet his book shows socialism to be his cherished political faith, a faith advertised with messianic fervour. “It is good,” he writes, “for socialism to bo preached as richer life,” and the prophet’s pose is taken in speaking of “the inevitable change to socialism.” This reliance on destiny rather than dogma is dangerous, suggesting the fanaticism and somnambulism of Hitlerism. Socialist Destiny at Hand. Listen, for instance, to the defiant certainty of the following: “To-day the issue is not socialism or no socialism. Socialist destiny is at hand for machine production. In this machine age, with its mass-production technique constantly and miraculously accelerating production, the issue is democratic socialism or socialism dictated [ believe there is no alternative to socialism, and soon we must either socialise or destroy the machine, and there is no likelihood of the machine' being destroyed.” Such is Mr Lee’s “credo” as published in London for the world to read. The world will read, also, and perhaps form misconceptions concerning tho forebears of New Zealand by the account Mr Lee gives of them. “One hundred years ago,” he writes “ships were coming down out of the north to engage in whaling and sealing, and beautiful clippers were coming down the Pacific to get tall kauri spars. Runaway convicts and runaway jailors were so numerous at one of his ports of call as to provoke Charles Darwin into recording that that port seemed to harbour the scum of the earth. Settlers arrived later, but the discovery of gold brought further hoards of adventurers and vagabonds, and, although a host of these departed with the collapse of the gold boom, they must have left their mark on New Zealand character. For years New Zealand has been at too great pains to suggest respectable origins, whereas even the missionaries were rare land jobbers.” Majority Depend on State. After this, ho one should resent Mr Lee’s later reference to “the legal profession, which is no more crooked than any other group of people in New Zealand society.” If New Zealanders are ready to accept tliis account of the stock ftom which they sprang, they may not demur at Mr Lee’s next theme. Ho finds that “socialism in New Zealand is extended into production, into distribution and exchange, into health and education, is already the major part of New Zealand’s material way of life. The population sustained by socialist activity is a. complete majority of all the people.” • . . After demonstrating this proposition to his own satisfaction, Mr Lee triumphantly concludes: — s ‘New Zea- • land is on tho high road to socialism .... New Zealand has more socialism democratically installed than any democracy on earth . . . socialism must

continue to build in New Zealand or New Zealand lies in ruins.” Mr Leo has already published a book giving his views on socialistic finance, currency and credit, and his further references to tho subject, although ominous for the future, may be passed over. But the part played by the Douglas credit movement in putting Labour in power may prove painfully interesting to many people. Douglas Credit and Votes “Tho Douglas Credit Party was also, at that time (in 1933), interesting the people of New Zealand in credit and currency reform, Douglas Credit agitation swooping New Zealand like a religious revival”, Mr Leo recalls. “Whilo no one could outline any Douglas Credit constructive proposals, nearly everyono was able to understand and agree with the Douglas Credit movement’s criticism of the orthodox financial machine. The very difficulty of understanding Douglas and his algebraic symbols and theorems rendered Conservatives more willing to listen to tho Douglas movement’s critical and able analysis of capitalist finance. Thousands who because of past political hostility found tho Labour Party altogether too vulgar an organisation, rallied to tho Douglas Credit movement, which in a few months reached extraordinary proportions and sold a huge amount of literature. “These thousands', after being won to a position of scepticism in regard to capitalist finance, could not rest in the Douglas movement, but started to study the practical and positive proposals of the New Zealand Labour Party. And although the Douglas Credit movement withered away almost as rapidly as it had blossomed, nevertheless it can be said finally that the Douglas Credit movement’s activities were the corridor through which tens of thousands of voters entered the Labour Party. Douglas Credit agitation must have a big share of the credit of any Labour success, although the Labour Party is thoroughly socialist in its policy.” But tho Douglas Credit Party would scarcely approve Mr Leo’s ideas of financing. Boiled down, these amount to issuing paper to pay off old loans and finance new works. Anyone who tried to export their capital to save what value was left in their New Zealand pounds would be stopped, Mr Loo points out, by tho Government’s control of exchange. Nor does Mr Lee baulk when it comes to the people’s savings. He says: “The old political bogey associated with Post Office Savings Banks that the financial policy of a Labour Government would provoke a run on such institutions—is no longer existent, the Labour Government being now able to order the Reserve Bank of New Zealand to supply currency to- the value of existing deposits on demand.” Paper Notes for Savings. But Mr Leo dose nob stato how much value there would bo in tho £60,000,000 o[ paper issued in such a case. The fact is ho hates capital and would destroy it. Tho people’s savings are the most awkward repositories of capital to deal with in a democracy, but Mr Lee says frankly what he would do'and does not stop to reckon the ruinous result. This dilemma crops up with another £60,000,000, the funds controlled by the Public Trust. Again Mr Lee is not dismayed and indeed finds the situation humorous, a humour that may not be appreciated by tho widows and orphans dependent on the Public Trust. He says “To-day, the socialist Minister in charge of the Public Trust is the largest capitalist in New Zealand, responsible for the careful control of over £60,000,000. When the Minister is Miniser of Finance, and as at present a socialist Minister of Finance, he is caught between a, variety of loyalties. As Trustee he is interested in maintaining a high rate of interest for his beneficiaries; as Minister of Financo in control of a Central Reserve Bank and possessed of unlimited financial powers, he should be interested in bringing about a progressive reduction in interest payments on funds required by the State and municipalities, for all tho people are his beneficiaries.”

Finance Minister’s Dliemma Elaborating the dilemma, Mr Lee goes on:—“The liquid funds and realisable securities at credit of estates and accounts to-day amount to £36,500,511, and on this amount the Minister has the duty of earning the highest rate of interest while giving effect to socialist monetary policy. If not careful, a socialist Minister might end like the Lady of Riga. For here is surely the greatest contradiction in politics—a socialist Finance Minister who is New Zealand’s greatestNcapitalist. . . Can a socialist trustee conserve large-scale capitalism in perpetuity.” Before confiding in Mr Lee and his Labour Party further, a great many people would wisluto hear the answer. Mr Lee offers to substitute “social security” for the definite security enjoyed by those looking to tho Public Trust. “With national superannuation for sickness, disability and age assured out of New Zealand’s annual production by making such services a charge on our annual accounts, the necessity for a deal of the investment will go, for much of the funds are superannuation balances. The Minister will cease to bo so much concerned about maintaining the highest rate of interest for £30,000,000 of funds. Such private accumulation and socialism are contraries. In a world where widow and orphan are assured of better and more regular provision, capital sums in the form of finance capital may be liquidated more rapidly to aid the beneficiaries instead of being saved more carefully to invest. . . . Inheritance a Dying System. “To-day, the Public Trustee guarantees tho principal. To-morrow a really socialist Trustee will guarantee income, not to a few widows, a few

or phans, a few weaklings, but to all through superannuation, invalidity and old age pensions, etc. Large-scale private accumulation and private investment, bequeathed in trust to the unfit descendant of a capitalist entrepreneur, arc a concomitant of a dying system.” So Mr Lee cheerfully contemplates the end of the system of inheritance of that combination of providence and duty and affection that causes husbands to provide wives against widowhood and fathers to protect children against orphanhood. Mr Lee would consign all widows and orphans to the tender mercies of an impersonal State and a materialistic socialism; they would have nothing to call their own. What Mr Lee would do with the farmers, the industrialists, tho workers, the church, tho coal ‘mines, tho banks, the insurance companies, housing, radio, land; liow lie would reform tho outlook of trades unions secretaries—all this and much more can bo found in the book. According to the. disposition ot the reader, the book can bo regarded as an inspiration or as a warning. At a moment when a fresh tenure of office is 'being sought by the Labour Party, in which Mr Lee counts us a major influence and driving force, it can also lie taken as an instructive guide indicating, in Mr Lee’s words, “from whence and to whither New Zealand is moving.” “Socialism in New Zealand,” by John A. Lee, M.P. (T. Werner Laurie. London).