PUBLIC CREDIT.

Auckland Star, Volume LXVII, Issue 186, 7 August 1936, Page 9

PUBLIC CREDIT.

USE IN NEW ZEALAND.

JUSTIFIED BY MR. SAVAGE.

I HOUSES AND "RAILWAYS.

(By Telegraph.—Parliamentary Reporter.) WELLINGTON, Thursday. The money problem and public credit were referred to by the Prime Minister, Mr. Savage, in the financial debate to-night. 'T am not thinking about running a printing press," said Mr. Savage. "I am not thinking about smashing the financial system, but I am thinking about transforming the system so that it will be the servant of mankind rather than the master of mankind." Sir Alfred Ransom (National, Fahiatua): -Explain the details. The Prime Minister: Explain the details! I think there won't be much left out by the time I get through. We have made a substantial beginning on the road I have been travelling. We have reduced the hours of labour and we have restored the cuts in salaries and wages made by our friends opposite. That was a curious way of solving the depression. The depression in every j country was due to the fact that we I had not sufficient buyers for the things that were being produced. It was the same in New Zealand as in other countries, -but" the Government of that day sought to solve the problem by giving the people still less money with which to buy. That was a curious way of solving a depression. Surely, however, we have altered that." "I'm Not Running Away." ■ Mr. Savage added that Mr. Coates had said the Government was going in for some form of social credit. "Well," he continued, "I am not running away from social credit. The whole of the money system to-day is built on social credit. Without social credit where would we be ? We want to use the public credit all right. We are going to build houses for the people by using the public credit. I would like to see the member for Kaipara going up and down the country trying to' convince people that we shouldn't do it and see how he gets on."

Mr. Coates: I probably will if you are going to use social credit. Mr. Savage: I will be delighted to accompany my friend. Perhaps we will be able to draw an audience between the two of us. I haven't met anyone who can tell me why we shouldn't build lines of railways if we want railways, or complete public buildings if we want to do so. We pledge the public credit in any case, even if we borrow in Timbuctoo. We ought to be able to do it here without going abroad. Broadcasting Station.

Mr. Savage said that if, for instance, the Government wanted to build a broadcasting station there was no reason why it should not do so on the public credit. The State controlled credit to-day. It had always had the [lower to do so, but the people in power in bygone days left it solely in the hands of private banking corporations. The present Government was not going to do that, and it was not going to smash anything.