FRUJTS OF BORROWING.

Auckland Star, Volume LXIII, Issue 136, 10 June 1932, Page 6

FRUJTS OF BORROWING.

CHAPTERS OF NEW ZEALAND HISTORY,

(To the Editor.)

I was rather interested in a letter in your Saturday's issue signed "Unity Is Strength." Although in theory his proposal might appear practicable, in practice it would be a gigantic failure. W T e have only got to go back to past history to prove that when the Stout-Vogel Government was in power it borrowed very largo sums of money, and although a good amount of work was done during that time— railways, roads, etc. —most of it was expended in the South Island, The end of it was that the country was left in a bankrupt condition, so bad that many people thought we should revert to a Crown colony. Then what was called the "Skinflint Ministry" under Major Atkinson cleaned up the deck, got rid of a great number of civil servants who were not required, a7id once more got the country on its feet again. When th? Ballance Government came into power Mr. Ballance was most emphatic in stating that borrowing must cease, ■He 'had seen the effects of the last borrowing policy and did not intend 1o have any more of it. Unfortunately Mr. Ballance only lived about twelve months. Then the Seddon Government came- into power and started the old game, borrowing a million at first, but it soon got to be live or six every year. That was the start of l our present troubles. Money was borrowed to buy large estates at high prices when there were millions of a-eres lying waste all over the country. Money was borrowed to lend to settlers ill large sums, which was quite unnecessary, as it could be got from private lenders jiu-t as cheaply, but not in such large, sums, and great loss has been proved by that transaction. Then I need hardly mention the advances to workers —it is before our eyes to-day —one of the biggest pieces of folly ever initiated by any Government. When the war was over everything should have been brought down; there would not be a, quarter of the unemployed that there is to-day; and yet your correspondent proposes another period of inflation. ' W. EDGERLEY.