BANISH SLUMPS.

Auckland Star, Volume LXIX, Issue 224, 22 September 1938, Page 13

BANISH SLUMPS.

LABOUR'S CLAIM. TRADE CYCLES MAN-MADE MB. PETRIE AT HOWICK. "We have been taught that trade cycles and slumps 'were an act of God. They are nothing of the kind. They are caused by man and they can be cured by man. And Labour can cure them." This statement was made by Mr. C. R. Petrie, Labour candidate for Hauraki, in opening his campaign in the Howick Town Hall last night. The hall was packed, principally with Labour sup-

porters, and there was a large majority for the concluding motion for a vote of thanks to the speaker and of confidence in Mr. Savage and the Labour party. Mr. E. Walsh was chairman. "We can retain prosperity here if we adopt the proper policy,"" Mr. Petrie said. A Voice: What k that policyT Mr. Petrie: I will tell you. The depression was aggravated by weak government. A Voice: Oh! Rot. Other Voices: Hear, hear! The speaker continued that a wrong banking system had allowed six banks to dictate a policy. "If we had used credit wisely and expanded it carefully," he said, "prices never would have fallen."

Speaking of the difficulties of the depression years, Mr. Tetrie said that fortunately, through a change in Government an economic balance had been restored, and the country had been made safe for democracy. Anything that suggested that democracy was imperilled by the Labour Government was nonsense, the speaker added. "We have saved this country for democracy." (Laughter). He claimed that by Labour's policy of increased purchasing power for everv section of the community, the Government had done more than any other to has been carried out," he proceeded, "and

we have put the people where we said we would —in condition* of prosperity."

Mr. Petrie quoted figures to show that production value had risen during Labour's regime. He said that £25,500,000 extra income for farmers and £34,000.000 extra in wages for workers was not a bad dividend. In 1935 the country's income was £152.000.000; three years later it was £220,000.000. "An increase of £t'»8,000,000 is not bad, is it!" he asked.

"They said, too, that we were going to destroy the savings of the people," Mr. Petrie added. "We were going to teach thriftlessness. Yet." he proceeded, "the number of depositors had risen by 103,188. while the additional amount of deposits in the Post Office alone was £13.750,000."

He turned then to the manifesto recently issued by the National party. He said he proposed to say little about the document, except to quote an old savin", "Will you come into my parlour, said the spider to the fly."

Government to Increase Production. No, the Government was going to increase production.

A Voice: How? By taking men off our farms ?

Mr. Petrie: The farmers cannot absorb labour unless they get it for very little.

A Voice: You run down Nazi-ism and other "isms." Aren't you running for Socialism?

Mr. Petrie: I will say a little about that, too.

Later on he did. By traininjr, education and conviction, he was a Socialist, because he had seen the poverty of the big cities, and for no other reason. "Production," he said, "is for the people, and we must distribute it for the people." If Socialism was taken further, and if State Socialism was talked of, he was not perturbed. It had been introduced by the Opposition and their predecessors. He mentioned State services which had been conducted by past Governments. Without them, the country's development would have been retarded. "And," he continued, "if we are going to make ammunition, the State will make It." (Applause.)

A Voice: We hope that some of your members will use it this time.

Touching a variety of topics, the speaker came to the farmers, who, he restore prosperity. "Every pledge made said, were a liability when the Government came into office.

A Voice: We were about your only asset.

The guaranteed price, he maintained, had saved the farmers of New Zealand. The principle of that guarantee had been ridiculed by the National party. It was in operation to-day, and had not raised taxation one penny..

A Voice: How can you call it a guaranteed price when it can be changed overnight.

Mr. Petrie: A jruarantee to raise the price, not to lower it.

The farmers were satisfied, too, he maintained, but effort was needed to maintain production. For one thing, overseas prices might fall.

A Voice: When they do fall, what will you do then ?

Mr. Petrie: We are going to main tain the price.

The Same Voice: How? Mr. Petrie: Out of collective produc tion.

With the conclusion of the address, a variety of questions was asked.