THE POLICY OF SAFETY

Press, Volume LXIX, Issue 20956, 9 September 1933, Page 14

THE POLICY OF SAFETY

WORK OF COALITION DEBTS AND TRADE ISSUES Major policy measures carried out by the Government during the last two years in an effort to combat the depression, were reviewed by Mr A. E. Ansell, M.P. for Chalmers, in entering the Lyttelton by-election campaign on behalf of Mr F. W. Freeman at the Sumner Town Hall last evening. The Mayor of Sumner, Mr \V. H. Nicholson, presided over an audience of about 70, which gave the speaker an uninterrupted hearing and accorded him frequent applause. Mr Ansell, in opening, expressed his regret at the necessity for the by-elec-tion, stating that he wished to pay a tribute to the work of the late Mr McCombs, who had been an untiring worker for his cause. Discussing the economic situation, Mr Ansell said it could not be said that the Government was in any way to blame for the present position. Economists differed as to the causes of the depression, but it was true that conditions overseas were in many instances worse than they were in New Zealand. The depression was one manifestation of the aftermath of the war, and the millstone of debts round the neck of Europe was a definite barrier to recovery. Europe was in pawn to America, a country which had not spent anything like the amount of money during the war that the other belligerents had spent, nor made so many sacrifices. War Debts Burden. Until there was a scaling down of war debts or a thorough revision there could be no real recovery. Great Britain had to-day to pay America about one and three-quarter dollars for every dollar borrowed. America should realise that she could not persist in extracting debt payments from Europe and keep European goods out of the country. Actually, of course, everyone had to accept part of the blame for the present situation. Money had been spent lavishly by the State and private persons in times of prosperity, and this had made the essential process of recovery more difficult to enforce. There had been much criticism of the Government's economies during recent years. But the fact remained that the national income had fallen greatly, and there was no alternative but to reduce spending. Had the Government not cut down its spending, it would have been responsible for a state of national insolvency. There were some who advocated borrowing to tide the country . over its difficulties, but it would be suicidal to sanction any more borrowing at present. The Government had adopted the only sound course to keep expenditure within its income. Discussing the exchange rate, Mr Ansell said the arguments for and against high exchange were very evenly balanced. The high rate was fixed to assist primary producers for debtor countries—such as New Zealand—could only meet their overseas loan obligations by maintaining a favourable trade balance. The evidence from Australia was that the high exchange had benefited that country, it was admitted, of course, that the position of the two countries was not identical. However, the high exchange bad definitely saved the primary producers in Australia. It should not be overlooked that New Zealand recently suffered because of Australia's high exchange, for when there was a disparity of up to 20 per cent, between the rates in the two countries, New Zealand exporters were suffering on the London market in competing with Commonwealth exporters. Secondary Industries. Referring to secondary industries, Mr Ansell'said he had been engaged i in secondary industry all his life, and he was anxious to see that it received "a fair deal" on all occasions. Ke believed that was the policy of the Government. Many were inclined to minimise the importance of secondary industries, but the figures for 1931-32 showed quite definitely that they could not be ignored as a factor in the organised economic life of the country. In 1931-32 persons employed in secondary industries in New Zealand numbered 61,790. The wages paid totalled £11,643,000, and the value of products was £39,000,000. There had been much comment on the question of tariffs, but he believed firmly that secondary producers had nothing to fear from any adjustment that might be made to the Dominion's tariff schedule. He believed also that sound secondary industries could not be harmed if it were desired to improve the country's position. Turning to unemployment, Mr Ansell recalled that he and Mr S. G. Smith, M.P., had investigated the problem of workless youths for the Government A great deal of help had been given by various organisations, which had given much attention to "vocational guidance." This involved finding suitable positions for boys. He thought the Government would yet have to do more in this direction Many boys were growing up without work, and if boys were allowed to De drawn into the vortex of Bolshevism it would be a disgrace to the country and a danger for the future. He believed much relief could be secured by placing boys on the land. Some parents were positively hurt when it was suggested their sons should go on the land. One woman had told him her son could not be expected to go farming for he had matriculated. But he believed a boy would be a better farmer in proportion to the excellence of his education. The need to-day was for even higher scientific and technical education, for farmers, and parents should not dissuade their sons from farming merely because, as they thought, they had been educated for "white collar jobs." Transport co-ordination was an important policy point of the Government, Mr Ansell added. He said about £60,000,000 was invested in motor transport, and the Government was wise in attempting to curb the present wasteful expenditure on uneconomic competition. The railways should carry the "wholesale" or major portion of the transport services, and motor traffic the "retail" or subsidiary transport. Widespread duplication of services could not be allowed to continue, and the Government was working to eliminate it wherever possible. Mr Ansell concluded by stating that there ,was a definite prospect of brighter days. Recent increases in wool and butter prices contained an element of permanence. Even if the rises continued, the country would not be out of its troubles completely. But with the lesson of the depression, which had taught the necessity of prudent administration and which had reduced costs, when prosperity did return the country would be able to avail itself of the better days to greater advantage. After answering questions, Mr Ansell was accorded a vote of thanks for his speech.

Because some persons in Canterbury have been poisoned by the blossoms or plants of the primula family a statement is sometimes made that all hothouse and glasshouse varieties of primula will poison human beings. The statement is incorrect. Only one variety of the primula family—primula obconica—poisons human beings and that only those whose constitution is not strong. There are hundreds of varieties of primula and obconica is one grown in a glasshouse in Canterbury. The poison, held in the tiny hairs on the stems of the plant and flowers, is intended to provide natural protection against herb-eating animals.