MONEY PROBLEM.

Auckland Star, Volume LXVI, Issue 260, 2 November 1935, Page 13

MONEY PROBLEM.

"UTOPIA" QUOTATIONS. ECONOMY CUTS CONDEMNED. MB. H. G. B. MASON'S CAMPAIGN Birkenhead electors who attended the opening address at the Buffalo Hall last night by the Labour candidate for Auckland Suburbs, Mr. H. G. R. Mason, M.P., heard something unusual in an election campaign—a candidate quoting a classic. Mr. Mason was speaking about money and credit and quoted several passages from More's "Utopia," including the one in which More says "so easily men get their living" if money "did not alone stop up the

way." Four years ago the Coalition Government asked for a blank cheque, which was an expression that was then much used. What had the Government done with it? One of the first things it did was to reduce wages and pensions. First of all there was a general reduction of 10 per cent in wages through the Arbitration Court, which was authorised to break all existing agreements. Usually agreements were considered binding, but the Government had broken them all. The authority given to the Arbitration Court was in terms that amounted to an instruction and was so interpreted by the Court. The immediate effect was a reduction in the purchasing power of the people. "It would be hard to find a shopkeeper with a good word to say for thai policy to-day," remarked the candidate.

Workers' Protection. v The Government followed up its wagecutting policy .by, in effect, abolishing the Arbitration Court and substituting voluntary arbitration. Whatever imperfections there were in the arbitration system it had been the protection of the ">workers for 40 years and it was instituted in difficult times like the present. * By reducing purchasing power and abolishing the Arbitration Court, in spite of warnings, the Government had reversed everything that experience had taught, yet the people were now asked to support it.

Mr. Mason enumerated other cuts which the Government had made, and said that they had been supported by Mr. R, A- Wright, who had once been Minister of Education, and Mr. Veitch, who was the only leader the Democrats had at present in Parliament. Referring to unemployment,'' Mr. Mason said: "My experience, as a member of Parliament, of the Government's attitude'has been depressing in the most extreme degree. It may be said that there were many things that could not he done, hut I am referring to things that were done. ■ The Government seems always very slow to give any relief which is within its power. How much should an unemployed man be allowed to earn "before his relief under the No. 5 scheme is cut down? It took about 18 months' hard agitation to get a definite answer. It seems to be the policy to give the tihemplbyed no jest from" incessant pinpricks/' ... ::' ( ~ The Money Problem. - It was not enough merely to criticise. The night before Mr. Savage had mentioned the money problem, 'and they would have noticed how the newspapers at once began adversely commenting on it. But the ..Labour partjrwas not alone in this. He could quote such men as the deputy-governor of the Bank of England, Mr. R. G. Hawtry, a high official of the British Treasury, and Mr. Reginald McKenna, a former chancellor and head of the Midland Bank, who said that banks did create money; and, in fact, they knew that from the experience of the war. But whether the banks used this power or not depended on the chance of their making a profit out of doing so.

"Surely," said Mr. .Mason, "we can supply as much as will buy the goods we produce without any harm. According to the Reserve Bank Act money is 'manufactured.-" And whom should it be manufactured by? Why, for the use of their own credit, should the people become indebted to a third party? Under Labour's plan it -would be controlled by the State, instead of being left to chance as now, and would accord with the people's needs. The long and the short of it is, money has become master, and why should it be so? The Government speaks of an economic blizzard, but money is man-made, and this depression is man-made because it is based on monetary failure." (Applause.) Quoting Dr: Kagawa as reported in the "Star," to the effect there was no unemployment in Japan and that alterations in the money system had made for a greater export trade, Mi - . Mason added, "So you see they did some- v thing to the monetary system and abolished 3,500,000 unemployed."- - What Labour Would Do. , The Labour party would first, as an immediate and emergency measure,. increase payments to the unemployed by 10/ all round, and it would institute useful public works; but the thing he would like to see New Zealand lead the world in would be the retirement of wage earners at 60 without any fear as to their future sustenance and without any means test. "New Zealand need not wait for the rest of the world," he concluded, recalling legislative reforms of pioneer days. "I believe that the pioneer spirit is not dead and that New Zealand can save itself and give a lead to the world. There is a great opportunity to get out of this ridiculous depression —ridiculous because it is an unnatural thing." (Loud applause.)

Broadcasting Questions. Mr. Mason was asked if he would allow B stations to be revenue producing and if he "would not allow the Broadcasting Board to have a inan to check everything said from the Friendly Bond station." In reply he said: "I think the B stations should have some support, but I do no.t know if it is risht to commit oneself to the form which it should take. As to the censorship, it seems to me a miserable business and I hate censorship in any. form." Asked how B stations would fare under State control, Mr. Mason said the policy of the Labour party was that State enterprise was preferable 'to private enterprise in many cases, but where private enterprise provided good service it was not the policy of the Labour party to take up.a destructive attitude to it. ... A motion expressing appreciation of Mr. Mason's work during the past four years, and confidence in him and in tllc Labour party, was carried with acclamation.