THE MAIN ISSUE.

Auckland Star, Volume LXII, Issue 119, 22 May 1931, Page 5

THE MAIN ISSUE.

FUSION OF MODERATES.

TO RESTORE CONFIDENCE.

MR. RANSOM'S ADVOCACY. Evidence tlmt the Government is definitely fighting the Hauraki byelection on the National Administration issue was provided in the speeches delivered last night by the Hon. E. A. Ransom, Minister of Land*, the Hon. S. G. Smith, Minister of Labour, and Mr. E. Allan, the United candidate for the seat. Speaking at Papatoetoe, Mr. Ransom made a vigorous plea for unity and suggested that New Zealand could by this means set an example for the rest of the Empire, and at the same time restore the confidence of those with money for investment in industry. Placing country before party and recognising the difficulty of putting the national house in order with a minority Government in office, the Prime Minister had offered all members an opportunity of forming a strong national party to carry on the affairs of the Dominion during the present crisis, said Mr. Ransom. In his references to fusion, the Reform candidate had stated that, "not knowing what lies underneath," he was prepared to follow the advice given by Mr. Coates.

"There was nothing lying underneath," the Minister declared with emphasis. "There was no 'nigger in the woodpile' as far as I know, and I should be in a position to speak, since I attended all the Cabinet meetings at which the question was considered. There was absolutely nothing hidden behind the Prime Minister's offer for the formation of a new party. Mr. Forbes offered to wipe the political slate clean and let the new party write thereon its own policy. The Prime Minister was perfectly sincere. Those who say there is anything insinccro about* him, do not know the man. What ho says he means, and he does not hesitate to say it."-

New Zealand's Chance. Mr. Ransom said the experiences in other parts of the Empire had shown that the three-party system was not in the best interests of the country concerned. "New Zealand has led the Empire in humanitarian and social legislation," he added, "and I ask why she should not set an example to the other parts of that commonwealth of nations by sinking party differences and coming together as one solid party for the government of this fine Dominion. (Applause.) I am proud enough of New Zealand to believe that when we set such an example it may be followed in other parts of the Empire. The existence of solidarity of government in the Dominion would, I am sure, go a long way towards helping in tliat direction."

Confidence Wanted. Developing his argument further, the Minister touched on the lowering to 2A per cent of the Bank of England discount rate, and pointed out that while apparently there was ample capital available for short-term investment, money "was not flowing into the channels of industry, or for loans overseas, with the result that ordinary business enterprise had become stagnant. Such investments would not be made because of the lack of confidence of the man with the capital in the administration of the affairs of the Dominions, and it was that lack of confidence which was to a larpe extent tying; up the world to-day. He did not think there was a lack of money in New Zcr.land, but there was a lack of confidence by those in possession of wealth, and that confidence had only to he restored to enable money to again find its way into industry. The Prime Minister had embarked on a stabilisation process, and the formation of a national Government would be the first step towards the restoration of that essential confidence.

Support From Reform. Mr. Allan declared that the writing was on tlic wall and that Reformers were coming over to the United cause gradually, hut none the less surely. At Ngatea yesterday he had been informed that there was a How of Reformers to United because they recognised in Mr. Forbes a statesman who was determined to balance the Budget and to stand for the honour and integrity of New Zealand. "New Zcalanders are going to back Mr. Forbes up in that," declared the candidate amidst applause.

Those who had the best interests of New Zealand at heart, said Mr. Allan, would regret Mr. Coates' rejection of the Prime Minister's offer. He thought business men in Auckland looked upon the reply of the Leader of the Opposition with dismay. There was, however, still. hope for the formation of a National Government, and in his view the time was not far distant when the pressure of public opinion would compel Mr. Coates not to think so much of party when the country called. The pressure would come from business interests, as tlicy believed still further economies would be required if the national bill were to be met.

The mover of the vote of confidence in the United party, Mr. A. Jeffs, declared that unless Mr. Allan were returned for liauraki the people would have not fusion, but confusion. Mr. J. Boss, the seconder, said that at least 90 per cent of the people wanted a National Government, and that oil Wednesday they would have an opportunity of recording their protest against those who had rejected the proposal.