MR MASSEY'S VISIT.

Press, Volume LX, Issue 17997, 14 February 1924, Page 14

MR MASSEY'S VISIT.

CIVIC. RECEPTION.

MR MASSEY ON IMPERIAL CONFERENCE.

The attendance of citizens at the civic reception accorded Mr Massey was one of tho largest and most representative seen at any similar gathering in tlic City Council Chambers. Tho Prime Minister was accorded a most hearty welcome, and when ho roso to reply to tho Mayoral address of welcome, tiiose present roso and applauded him heartily.

Tho Mayoral Address,

The Mayor (Mr J. A. Flesher) said it afforded him the greatest pleasure to prcsido at (lie civic welcome the people of Christchurch were tendering to the Kt. Hon. W. I' 1 . Massey, Prime Minister of New Zealand. "I am sure you will bo pleased to see him looking so well and fit upon hia return from the Imperial Conference," said the Mayor. (Applause.) "When ho left on that trip ho was far from well,but he has benefited by the rest he had on tho voyago both going and coming. It gives rnc more than usual pleasure to preside at this function, for it is the first occasion the citizens have extended a civic welcome to the Prime Minister, and I count it an honour to be here. This function has no political significance; politics are taboo. "We are met to do honour to the head of tho Dominion —the Dominion to which we, like our guest, are proud to belong. (Applause.) "Wo aro pleased to welcome Mr Massey upon his roturn from the Imperial Conference, where he so ably represented tho Dominion, as ho has done on previous occasions. (Applause.) Wo know that Mr Massey is & great Imperialist, but ho is not an internationalist —whatever some people might mean by that term. There is no one more proud of the Empire than tho Prime Minister of New Zealand—(applause)—and wo aro proud of the leaders who uphold tho best traditions of the Empire. Mr Massey holds hia present position by dint of hard work. All hia lifo he has been a hard worker. * Tho public, sooner or later, recogniso tho hard work put upon men in positions of trust, and socner or latex the reward is made. As the head of the country Mr Massey has a, great load of responsibility to carry—greater than can be expected of any ordinary man. Public service is always wearing and sometimes wearying, but it jb never bo wearing as when one has to put up with pin-pricking by smaller people. There is too much pin-prick-ing. If the peoplo only appreciated at its true value the worth of the work done there would be less pin-pricking and captious criticism. (Applause.) The load on the Prime Minister is so great that one often wonders why there should not be a more even distribution of the work, I know I am treading on dangerous ground, but as it is with the State, so it is with the individual — too much centralisation is not for the best, and I hope it will be not regarded as presumption if I suggest that the time has arrived when the Premier should relieve himself of some of his responsibilities and placo them on tho shoulders of others. Perhaps his experience in this way will lead him to do something similar in regard to public affairs. It has often been said, 'Trust the people,' and if this is done iu the administration of public affairs it will lead to better results. "In his zeal for the public weal, Mr Massey is always actuated by the highest motives, and whether wo agree with him on all questions or not, we all agreo that as our representative ho is a great success. He has never betrayed a trust. (Applause.) In shorter form, ho has never let us down. (Applause.) Perhaps tho most satisfactory feature in tho public lifo of the Dominion is that there has never been tho slightest suggestion of graft among our leaders. (Applause.) During the Hi years tho Premier has occupied hi** present position there has never been tho slightest suggestion of anything crooked. (Applause.) For that reason we are proud, and so long as our public men, from the Prime Minister down, livo up to that standard, we need never have any fear of the conduct of our public affairs," Mr riesher went on to say that Christchurch was the second city in the Dominion from the point of view of population, and tho citizens believed it was tho chief industrial centre. 'lu conclusion, ho welcomed Mr Massey,. and expressed regret thai Mrs Massey's health had not been good iur some time, lie asked tlia Prime Minister to eoiiM'y their best wishes to Mrs Massey. "Oil behalf of thi.' citizens 01 Christchurch 1 welcome you upon your relurn ironi your arduous duties us ear representative at the greatest council of Die Empire—-ihe imperial Conference," concluded the M:iyor. (Prolonged applause.) Hie Mayor read a leiter from Mr E. 11. Wyics, presiucnt o£ tho Canterbury CiiatuLier or Commerce, apologising ior Mr Wyks hud Leon invited to speuit, supplementing the Mayor 's worua ot wckoiuu, but had been prevented trow attending. i n u, Q uoura( . Of hia letter ho paid a. high tribute to ktlio Prime Minister and his work at the """

CORDIAL CIVIC WELCOME.

REFORM PARTY'S LUNCHEON. The Prime Minister, tlie Kt. Hon. W. F. Massey, arrived in Christchnrcli yesterday morning on his first, visit to tlic city since liis return from tho Imperial Conference. The civic welcome extended by the Mayor (Mr J. A. Flesher), on behalf of the citizens, was attended by a large number of prominent and representative citizens, and the gathering was marked by much enthusiasm. At one o'clock Mr Massey was the guest at luncheon in the Caledonian Hall of the Canterbury Branch of tho New Zealand Reform Party. The function was attended by large numbers of friends and supporters of Mr Massey, and was highly successful. Mr Massey was in good form when responding to the toast of Ms health, and his interesting speech, dealing chiefly with Dominion affairs, was frequently punctuated by hearty applause.

PRIME MINISTER'S REPLY,

"In tho first place," said Mr Massey, replying to the Mayor, "I wish to thank you for your very kind remarks regarding myself, and for the kindly thought which prompted this reception. I look upon it as a great honour to me. I thank you for your kindly message to Mrs Massey, and I don't need to tell you that it will be appreciated to the full." "I want to say," he continued, "how glad I am to hear that Christchurch is progressing as a manufacturing centre. I hope the Mayor's prediction that it will beeomo the largest manufacturing centre in the Dominion will be realised. I thank the citizens who have como to greet me. I come back more impressed than ever with tho realisation that we don't know how well oil wo are. Ono has only to go to the other sido of the world to find out. I hope that many residents of New Zealand will visit Europe, but I will never again suggest that they should do so during winter. (Laughter.) We landed in New York on Christmas Eve. We left that night, and arrived nex£, afternoon at Quebec, It was snowing when we arrived at New York, and it was still snowing when we arrived at Quebec. All tho traffic was off the streets except horsesledges." Mr Massey went on to say that he addressed a meeting at Quebec on Boxing Day, when he was suffering from a cold and had difficulty with his voice. He went on to Toronto, Montreal, Ottawa, and Vancouver, travelling a distance of 4000 miles, and there was snow every inch of the wav. (Laughter.) On two occasions the temperature was 40 below zero. He mentioned theso things so they could establish a comparison between the climate of New Zealand and other countries. "When I went away the outlook was not good from ;l climatic point of view. I said beforo I left I had never seen a winter like the one before I left which was not followed by a droughty summer. We havo had a droughty season, but it has not been so bad as it might have been. If wo aro snort in our exports it will not he very serious. Imperial Conference. Turning to the Imperial Conference, Mr Massey said: "I believe if tlie Empire is to bo kept together and I am confident it will be —the political leaders must meet periodically in the heart of the Empire or elsewhere.. It is necessary that representative men must come together and express their opinions, and so arrive at definite conclusions on matters of Empiie importance. I have seen men come together holding widely different opinions, but after 3 few hours round the oak table in Downing street they axe able to arrive at a unanimous conclusion—that is the benefit of coming together. I have been told repeatedly that there is a danger of the autonomy of the Dominions being interfered with by the Conference. I have attended the Conference five times, and I have never heard tho slightest suggestion of any interference with the rights and liberties of the Dominions. The position is perfectly plain and simple. Hore we are, a number of nations, each arranging its own affairs and making its own laws. We havo an instance of this during tho war —each indicates what it is prepared to do in tho case of war. Over it all is the King, tho Constitutional monarch, who governs by the advice of his Ministers. I am very strongly of tho opinion that tho Empire Government is tho freest the world has, even seen. (Applause.) Tho last conference discussed the question of Empire preference —not a new subject. In 1917 I brought it before the' Imperial Conference myself. I drafted a resolution, and got it before the Imperial War Cabinet and the Imperial Conference, both agrccd to it. About that time an organisation was formed to give effect to Imperial preference. I am very strongly of the opinion that we can show our loyalty in commercial undertakings as in war. (Applause.) This Conference expressed itself in favour of the resolution. It was agreed to by tho Government —which was a Coalition Government —and submitted to a committee. It was passed into law, and is the law of the land to-day. Mind you, it is only a principle, but at that time all tho representative men of Britain were in favour of it, and I don't think there has been any change. Here is one point: I am not advocating trade within the Empire because of self-inter, est, but because every undertaking becomes an additional tie to keep tho Empire together. (Applause.) Protection and Freetrade. "Mr Baldwin, who is one of the straightest men I ever canio across in my life, never intended, and said so plainly, that protection should apply to foodstuffs —wheat, flour, meat, and dairy produce. It was intended to apply to certain minor industries which required a little assistance —dried currants, peaches, raw apples, honey, canned fish were a few of the lines. If those proposals had got to the length of Parliament they would have been adopted. I am glad to see that the Government in power intends to bring them up and give them a run. It is to be decided not as a party question, but 011 a free vote. It may turn out all right, and it may not. Serious Condition of Britain,. "The condition of England, industrially and financially, is very serious," continued Mr Massey. There were nearly 11 million unemployed, and to meet the unemployment problem the Imperial Conference agreed that those overseas Dominions which could go on with development works should do so. Such countries would get money at a low rate of interest for five years. The financial position had changed during the last few weeks, and he did not know whether the Government would go on with the proposal. "There is depression in Britain," said Mr Massey, "but London does not

show it. If is there, however, and ill is is how; it is working out. The unemployed pet a dole to allow them to exist until employment, offers, but employment does not offer, mid the position is getting worse. Thousands of boys 'who have left school since the war, and who ought to be at work, are getting tlic dole, or their parents are (Inuring it for them. Up to the present no attempt has been made to get over that difficulty. 1 can't, help thinking the result, of (he election will be a set-back; but I hope the people in power will rise to the occasion. Germany Must Pay. "Britain's position is partly owing to Iho fact that an enormous load of debt "was left as a legacy ot: the war. Britain is not getting back the nioney she borrowed for the other European nations. She lent large sums to France and Italv and to Tiussia before that country went through tlic .Revolution. Then there, is the reparations from Germany, from which little is forthcoming. It would be a tremendous help to Britain if those other countries would stand up to their debt as she has stood up to hers. \\ e have reason to be proud. (Applause.) "I am not anxious to jump on a fallen foe." continued the l'rinic Minister, "but no one can say that Germany has attempted to pay her debt. (Hear, hear, and applause.) Germany is piling up a huge quantity of raw materials, and as soon as an agreement is signed, Britain will have a stronger commercial competitor than ever. Itmay be the same witli Kussia. lam not very keen on Britain associating itself with Soviet. Kus.sia.

"As regards the. situation between France and Germany, I can understand the position, and I might ns well say my sympathies are with France." (Ap plause.) Mr Massey went on to say that he had seen the devastated areas of France, and he knew something of the misery and ruin caused there liy Germany. He w T ould not touch 011 the Ruhr question, he said —he did not think it conformed with the terms of the Treaty. "I was 011 the Causes of War Committee, and was chairman of that committee for several weeks," said Mr Massey, and I have no doubts as to Germany's responsibility for the war. If I live to 1000 years I shall never forget the atrocities Germany committed. I feel strongly about this, and I think I have reason to. (Applause.) Germany caused the war and lost the war, ami by every law r , Divine and 1 human, Germany should pay." (Applause.) ''We have lost our industrial supremacy. and in my opinion it will not he regained—not at present, anyway. Wo must look at this from a selfish point of view. Britain is our best customer. If the depression is going to continue it will affect her purchasing power, and if the purchasing power of Britain is affected, it will be felt by the people of tho overseas Dominions. It is our duty to do everything to help the Mother Country." (Applause.) New Zealanders at Home.

Ho harl been immensely interested, said Mr Massey, in meeting New Zealanders at Home. "You know,' ho said, with a smile, "when New Zoalanders net Homo they loolc upon it all as 'ours.' (Laughter.) Everything in London is curs' —the Tower of London and Buckingham Palace. (laughter.) It is a very fine feeling. Honestly, 1 believe the most popular people of the Empire with those at Home ar© New Zealanders. I have known people get into crowded halls, without any assistance from me, by telling the peoplo thev are New Zealanders." (Laughter.) Mr Massey went on to sketch briefly and graphically the invpressiveuess of Armistice Day, 1919, <vnd the orderliness of "tho 11u' r o crowds. Ho related how two New Zealand ladies had got into one of the closely-guarded spaces in order to photograph the New Zealand party by telling the constable that "that was their Prime Minister, and they wanted to see him." (Laughter.) The people of England were well disciplined wlien in crowds, and he believed that so long as they had a people liko that they need never fear for the future of the Empire. Air Massey touched briefly upon tho forthcoming Empire Exhibition, and said that it presented a great opportunity for New Zealand to tell and show England what she could do in the matter of exports. New Zealand had sent Home last year more mutton and lamb than all the other countries put togther, and £18,000.000 worth of butter and cheese.

He again thanked them from the bottom of his heart for their kindness and courtesy. (Prolonged applause.)

The function concluded with tho National Anthem.

THE LUNCHEON.,

MR MASSEY'S SPEECH.

At' the luncheon tendered by tho Canterbury Branch of the New Zealand Reform Party to Mr Massey in the Caledonian Hall, there was a large attendance of representative citizens and of friends and supporters of tho Befonn Party. The proceedings were of tho heartiest character, the distinguished guest being received with applause on entering the hall accompanied by Mr H. D. Acland, president of the Canterbury Branch of tho Reform Party, who occupied tho chair at tho luncheon. Tho chairman had on his

right the guest, Mr Massey, and the Hon. Sir E. Heaton Bhodes, Minister of Defence, and 011 his left the Mayor of ChristchuTch (Mr J. A. Flesher). The toast of "The King" was loyally honoured. Chairman's Remarks. Tho chairman in a brief speech proposed tho health of the Prime Minister.

The ■ toast was musically honoured, and cheers were given for Mr Massey and also three cheers for Mrs Massey and family. MR MASSEY'S RESPONSE. Mr Massey tharnked the chairman for his complimentary remarks, and thanked all those present for their enthusiastic reception and for their kindly reference to his wifo and family. Continuing, he said he had dealt with the

Imperial Conference at a previous meeting that day, and he wished to say a few words regarding tho position of our own country. He looked back with pleasnre on tire counbrv's record of exports up to December 31st last. It was in their exports and imports they lived and had their prosperity, and it was their business to increase that prosperity/ at every opportunity. He looked upon Britain as their best market, aud they should do everything to help it. The exports for 1923 amounted to £45,967,11!). Their imports were also high—some peoplo said they were too high, but he had to look upon it from the point of_ view of Minister of Finance and the revenue he derived through the Customs. (Laughter.) They amounted last year to £.4i>,4t>6,544. The total imports and exports were £.89,453,663, an increase of £11,721,974 over 1922. He doubted whether another country in the world did as well as this country did last season, and he believed it would, still improve.

Britain's Fiscal Problem. They were having difficulty in Britain with fiscal matters, he continued. The United States of America—a. friendly nation —liad a his; balance ot' trade in its favour, amounting to :C 1-15,006, That was to say, Britain £ot that much more from the United States than the United States got from Britain. That was not, New Zealand's matter, but the Dominion was concerned in all that concerned Britain. The balance of trade in favour of the Argentine was £33,156,302, and Denmark £20,609,972. The total balance against Britain in respect to those three countries was £20i>,102.52-1. lie wondered how any country could bo prosperous under

those conditions. It was impossible to go on, year after year, with the balance against it like that, lie took the opportunity while in Britain of looking into those matters, with the object, of improving the conditions, so far as the export trade of this country was concerned. He had found that for one year the United States had sent £'20.000.000 worth of bacon int.") Britain and nearly £7,000,000 worth of ham. New Zealand was supposed to be a producing country—it was a producing country, and for the life of him he could not see any reason why the Dominion could not produce bacon and ham and lard. He had been to Smithtield and he did not say no bacon came from New Zealand. There was a little, but certain freezing companies bought pigs up to 2001b and sent thcni Home as pork, where it was converted into bacon and ham. He was not finding fault with the companies, but it seemed to him to be a round-about way. The figures he had quoted proved there was an unlimited market at Home. Ho hoped the chairman of the Meat Board, the Farmers' Union, and other agricultural associations would see that something was done to increase our exports in this respect. Freetrade and Protection. Referring to Freetrade in its relation to English politics and the conditions existing at Home, Mr Massey said lie meant to speak about the unfortunate impression that existed regarding those questions. He did not suppose that all would agree with him, but he did not mind that so long as lie was right. (Applause.) He had said on one occasion at Home that he would like to see less party and more politics, and he had been told that he should not have said that. He remarked that he felt, during the progress of the English elections, something like the war-horso in Scripture —he was sorry he was not in it. It was thought at Homo that the then Government wanted to apply Protection to all kinds of imports. He believed it was tho right thing at the time. It was not the intention to apply Protection to all classes of imports, but only in respect to certain lines which he had enumerated at a previous meeting that day. There was a good deal of foreign influence felt at Homo which the people there did not realise. At one time Britain was tho workshop of the world. America, which was doing so well now, had not commenced to manufacture. The times had now changed. Instead of other countries coming to Britain for their manufactured goods, they were manufacturing themselves, and sending their surplus to Britain. That would be all right if there was a reciprocal Freetrade, but there was not. To take a supposititious case, said Mr Massey: supposing New Zealand and Australia entered into an agreement by which there was Freetrade between the countries. If New Zealand stuck to the agreement and allowed Australia to enter free, but found that her exports had to pay a 20 per cent. Customs duty before they entered -Australia, tow long would tho people of this country be satisfied? Not very long. That was what was happening to-day in Britain. Britain was free to import, but when she sent her goods to foreign countries she found they were met by heavy duty. This, together with depreciation in currency, was having its effect on Britain. No country in the world could compete with that. There was a tremendous demand for good workmen in America to-day, and the best were leaving England. They eould not be blamed for that. Self-Supported Empire. "Don't forget this Empire of ours can produce everything required for its own population, not only now, but for centuries to come," said the Prime Minister. "ifbw are we going to bring tho waste lands of this country and of Australia, Canada, South Africa, and the possessions in the tropics into production? There is nothing which is

not prodticed in the Empire except mineral oils, and they will probably be found yet. All this land is lying idle, but Britain is * over-populated, while we cannot get a sufficient number of people to develop, it. We are going to America for foodstuffs. Farmers know that those who go to their neighbours for supplies for their own households do not last long. That is what we are doing to-day. Until a change takes place with fiscal matters I see no chance of the prosperity of Britain being restored. This did not come up at the Conference. Mr Baldwin has got tho idea all right. He wanted the home industries protected, but he could not get it done. I don't

suppose it will come on later. I only hope for the best. I see no chance of any improvement in the near future. Dominion's Financial Position. "Turning to the financial position of our own country, it is satisfactory to see that the revenue for the 10 months is £19,851,833, an increase of £756,163 over the corresponding period last year. The expenditure was £20,690,582, a decrease of £617,355 over the corresponding period last year. I remember tlmt a lot of people, when I said that after

the war I would cut down expenditure, said that that was only camouflage, but it lias been cut down, and has produced prosperity for the country. I don't know what tho surplus will be at March 31s t. That there will be a surplus I don't doubt. We havo to remember that there is £1,600,000 to be paid back to tho Treasury. There won't be millions, but the surplus will be satisfactory. We owe an immense amount of money. No one denies it. I know it wants careful handling. Our policy is: There is a debt; build up assets against is as quickly as possible, and lighten the burden for tho taxpayer. (Applause.) Our gross debt is £2lB 953,324, of which almost half is held in New Zealand, and the net debt is £207,000,000. Tho interest-bearing assets cannot be taken out accurately till the cud of the financial year. Many of them are increasing; some are decreasing, but not many. Our interestbearing assets on March 31st last were £144,000,000. In one asset, the State Advances Department, we had a capital of £14,000,000 at March 31st last. Since then that has been increased by six or seven millions, so that to come anywhere near the correct total that amount ought to be added. That is only approximate. Deducting 144 millions interest-bearing assets from 218 millions gross debt, we have £74,000,000 of the debt not covered by interestbearing assets. I have not gone fully into the question, as it is impossible to take out the correct figures till the cud of the financial year. Some of the papers have had a shot at it, and they all arrived at different conclusions. I left it alone. That is what we have got to face. Against that we have huge assets which are not all interest-bear-ing. Public buildings represent a large Bum. They are not interest-bearing it is true, but we save rei}t by them. Our State forests, which are worth

£35.000,000, are other big assets. 1 don't say they arc interest-bearing, but the asset is tlierc. "Don't Decry tho Country." "Wc have pot so many people in this country I don't understand. They docrv the country for wretclied party iiurposes. They" want to get at me. I don't mind, they can get at me as much as they like, but for Heaven |s sake don't let them damage the credit

of tho country. (Applause.) ''The war cost £ 50,570,229 out of loans and £32,323,257 out of revenue. The total cost of the war to this countrv was £113,073,034, including contributions from tho public amounting to £ 171,U5. We have to pay interest on the cost of tho war, and pensions, and unless things go seriously wrong we are going to be able to meet our liabilities -without much trouble, and pnv cverv penny of the money \vc promised to pay in pensions to the incapacitated and to dependants. ''The economies for the period 19-1-23 totalled £3,735,000 and for tho year 1922-23, the net saving was £2^oo,U/». "There is no use going before the public and saving we are going to do io and so, and not being able to carry it out.. When I want to do something, I place it before my colleagues, and when they have agreed we go ahead and do it, and tell the public after. (Applause and laughter.) The Recovery of America. Referring to his visit to America, Mr Massey said he had interviewed President Coolidge, and had had a long talk with him. There wero points upon which they disagreed with the Americans, but he believed that in President Coolidge America had a nian wfao would make good, and prove a good friend of ours. He quoted tho following extract from President Coolidge's address to Congress on December 6th, 1923: "A very great service could be rendered through immediate enactment of legislation relieving the peoplo of some of the burden of taxation. lo reduce war taxes is to give every home a better chance. For seven years the people have borne with uncomplaining courage the tremendous burden of national and locai taxation. These must both be reduced. Tho taxes of the nation must be reduced now as much as prudence will permit, and expenditure must bo reduced accordingly. High taxes reach everywhere, and burden everybody. They bear most heavily upon the' poor.' They dimini. 'i industry and commerce. They make agriculture unprofitable. They increase tho rates on transportation. They are a charge on every necessary expenditure of life. Of all services which the Congress can render to the country, I have no hesitation in declaring this one to bo paramount. To neglect it, to postpone it, to obstruct it by unsound proposals, is to become unworthy of public confidence, and untrue to public trust. The country wants this measure to have the,,, right-of-way over all others." The present tariff law has accomplished its two main objects. It has secured prosperity. Under it the country lias had a very large export and import trade." "I went through the States about three years ago," continued Mr Massey. "Thc'y were then suffering from depression brought about by the same causes as ours—the expense of the war, its legacy of deb-, and unemployment. They were then going through the form of selling a man's labour by auction, as in the old slavery days. It was only to draw attention to the conditions, of course. They got over that, and if there is one country in the world whose prosperity equals ours, it i 3 tho United States." The President had said that "the present tariff law has brought prosperity,'' and it bad. Their tariff law was against our interests, but every country had the right to make its own laws. New Zealand had the greatest trouble to get its products into the State's. They came to New Zealand for butter in the winter, when their supplies were short, and the Dominion gave it to them at a price "We must take every opportunity of

increasing the markets for our produce that oilers. We must not' let any chance slip, aa we did with Argentine beef. We will never recover the ground we lost there." Remissions of Taxation. Turning to the remissions made 'in taxation by the Government, Mr Massey, in quoting approximate figures, said that the abolition of the super

land tax represented about £.136,000, and the abolition of the assessment of tax on income from land represented, approximately, £200,000. That tax, he said, was a war tax on land—he wished to make that perfectly clear. Some had objected to its removal, but when it was imposed he told the public, and his colleagues had told the public over and over again, that when the war came to an end, and it was at all possible to do away withit, this tax would be removed. If it were proposed to substitute income tax for tho land tax he would support it—(applause)—but they could not ask the producers of New Zealand, on whom the prosperity of the Dominion depended, to pay double tax, If they analysed what had brought about tho country's prosperity they would find that, though wool prices were now high,

tho woolgrowers had had two very bad seasons, from the effect of which they had scarcely recovered—seasons in which, in addition to low prices, there had been a diminished quantity of wool. Dairy Industry to the Rescua. What had eome to their assistance was the dairy industry. The poll for tho election of members of the Dairy

Pool Board had disclosed that there we're 56,000 people engaged in the industry, and it was these people, who did not work oight or six hours a day, but who started at C o'clock —four o'clock —in the morning, who had worked in a maimer beyond all praise, and produced huge quantities of butter and cheese that brought money into the country. He did not disparage what had been done by other classes of producers, but tho dairy producers of the country had done more to restore the prosperity of the Dominion than any other class ho could think of. (Applause.) By the substitution of 5 per cent, on the "capital value for 5 per cent, on tho unimproved value, with depreciation of premises, £IOO,OOO had been remitted; and the remission of rates

of income tax represented closo upon £740,000. This made a total remission of land ana income tax amounting to £1,176,000. He could have asked Parliament to go a little further, but, at the time, he was somewhat afraid of a less 3 uccessful season than was experienced subsequently. Other Remissions. The amount remitted in respect of amusement tax was estimated at £25,000. There had been some little reduction promised to the racing people, which Parliament did not approve of, but which worked itself out on March

31st. He had told the racing people that ho intended increasing the stakes tax t.o o per cent., and they made what he considered was a very generous offer. "Make it 10 per cent.," they had said, "and limit it to two year 3." He had got that on the Statute Book, and had wanted to put it back to 5 per cent, last year, but tho House was not willing to agree. The remission of duty on tea represented £112,590, and the reinstatement of penny postage was costing £250,000. Now, that was a pretty good record for one session's work, and he would like to think that they would do as well next time, but he "did not quite like the outlook. Tho

total estimated remissions was £1.503,590. Referring to arrears of taxation to date, Mr Massey gave tho following figures: — Land tax .. .. 373,<529 Income tai .. 313, Ba9 Total .. .. £(387,188 Bank of New Zealand Shares. Before he left, for England ho was approached by the Bank of New Zealand authorities on the subject of increasing the capital of the bank; in accordance with the law his consent, ns Minister of Finance, lind to bo obtained. It was desired to increase the capital by £1,125,000, and had told tho bank authorities that he saw no objection, but, as representing the peoplo of tho Dominion, who were partners in the bank, he wanted his shaTe of the new stock. They demurred, but consented to the Government securing jmethird of the issue, equalling 375,000 shares at £1 each. The last time ho Faw the quotations for those shares they were quoted at £2 10s 6d. That was twenty thousand times better than attempting to build up a new bank to help to ruin the Bank of New Zealand, of which the people of New Zealand now owned one-third. The State's total holding of "A" and "B" shares equalled £1,500.000, but. in his opinion, they were worth another million on top of that, and tliey were a very fine property. State Advances.

.He desired to call attention to the financial position they were getting into. He had no fault to find with the financial position; the country had done nothing to get into a serious condition, and he did not think it would get into such a position. He had asked Parliament, which had agreed, to make alterations in the amount to be advanced to farmers, and in the method of making advances to workers for dwellings. He wanted to help every man, as far as he could, to become the owner he and his family—of the house he occupied. (Applause.) If they could do so they would hear less of tho Bolshevistic nonsense. There had been a tremendous outlay in the matter of State advances for dwellings. Ho did not go back on it, but applications were still pouring in, and lie had to look at the finance position. Tho following table showed the loans authorised and monevs paid over (loans for all purposes) from April Ist, 1923, to Febrnary 11th, 1924: Authorised. Paid. No. Amount. Ho. Amount. £ . £ Aptril to Jan. BS&3 7,283,277 6531 4,521,782 FelS. Ito 11 447 471,3G5 251 260,625 Totals .. &S4O £7,754,642 5782 £4,782,407 Financial Outlook. As he had said, he had to look at the financial' position. The Commonwealth Government wanted £20,000,000, and was offering 6 per cent., with the condition that it would be free of income-tax —a very big thing. When expenses were added, this loan would be an expensive one. New South Wales was"doing exactly the same' thing; he did not know exactly what they were asking. Queensland was doing tho same thing—he thought that State was offering a little more. Japan wanted £25,000,000, and was offering 6 per cent, at 87-5 —that meant paying £B7| for £IOO, and getting £IOO on due date of repayment. They could imagine what that meant. All these flotations were going to affect New Zealand, and he, as Minister of Finance, could not go on without a loan —he was not going for one in a month, or for some months to come, for the credit of New Zealand was so good, that ho could got money and could get it without much difficulty. But for a loan with a currency of twenty or thirty years he would have to pay something liko other people — not so much, perhaps, but not far behind. There were other methods of financing which he was using—methods that were perfectly sound and legitimate, but which could not go on for ever. The time was coming, if they were to continue theso thing?, and if the development of the country was to continue, when these temporary methods would be insufficient. There would be a very good balance-sheet, and one that he would not be ashamed of when he brought it down. But there was the position—they wero going to

have a scarcity of money. There was no money available in England. They had talked of giving loan moneys to the Dominions for development purposes, and he hoped that they would do so, because he would be there for a. few millions on behalf of New landPrecautionary Words. "I want to tell the public of this country,'' Mr Massey went on, "if this thing comes on —and I think it will the people of this country will have to

shorten sail, and will have to go slower. I know that it has come_ at a very awkward time with the winter coming on. I hope ifr won't do harm—personally, I don't think that it will. I know that wo have a good country, an industrious people, and that there is demand for our produce. If I, as Minister of Finance, have to pay 6 per cent., which, with brokerage and other charges, means 6} per cent. —well* then, I cannot lend it at 4A per cent." In concluding, Mr Massey expressed his thanks to those present for attending. What he had told them, he said, was exceedingly important to the producer, to the businessman, and to the worker. Ho urged them to have the same confidence in tho Government that they had reposed in it in past years, but the time would probably come when the Government would have to shorten sail as far th« expenditure •was concerned. (Continued applause.) "Three cheers for the Prime Minister" were called for and were heartily given, and the function ended.