POLICY OF RIGID DEFLATION

Press, Volume LXX, Issue 21123, 26 March 1934, Page 13

POLICY OF RIGID DEFLATION

i . « JMR M. J. SAVAGE CRITICISES ! GOVERNMENT i • j MORTC.UiH SYSTEM OF THK ! DOMINION i | | iPBUSS ASSOCIATION' TF.r.illiEAM.) 1 INVERCARGILL. Marcli 25. ! The leader of the Opposition, Mr M. j .T. Savage, addressed a large audience j in the Victoria Hall last evening, and at the conclusion of his remarks a ' vote of thanks and confidence was unj animously carried. Referring to the i mortgage system, Mr Savage said that if the present mortgage system wth its high rates of interest was allowed to continue, a big crash in the near future was inevitable. The position in which thousands of farmers and others found themselves to-day made it imperative that immediate action should be taken by the Government to prevent the unnecessary sacrifice of producers who, through no fault of their own, were on the j verge of losing thei.- holdings. The j savings of lifetimes were in the melting j pot through the ill-advised actions of those who have had the responsibihtv of government during recent years. Instead of uimirr* at a policv of stabilisation of internal prices" and conditions, the Coalition Government had insisted upon carrying on a policv ot ng:d deflation which had landed thousands into a position which was little short of serfdom. State must lace the responsibilitv of complete control of the mortgage I and a readjustment of mortgages on a basis which would allow production to be carried on. Any piecemeal policy of helping a section of the producers would not meet the situation The need of the moment was complete control of the Dominion's monetary and mortgage system, wifh the object of saving large numbers of producers from bankruptcy . (Guaranteed Prices. "Guaranteed priors fur products sufficient to enable producers to meet j their obligations on a new basis is the | only logical way out of the difficulty," i said Air Savage. "The only problem I to be solved is how to distribute the I national income on an equitable basis. I External influence should not be allowed 1o play any part. The apphcaj tion of a quota system to New Zc-a- ---; land export.; means, in effect, the re- ■ strietion of Dominion production tniI less an alternative policy can be de- ■ vised. There can be no serious i thought ot restriction of production ; wltile a large number of peoule are ! gelling less than a fair standard of ' living. Labour asks for a minimum nclnw which no wage earner should ! be asked to work, and is prepared to carry the same principle into effect : by guaranteeing prices to producers , by a conscious planning of national activities. A guarantee nf a standard j oC living for the people in keeping with the pro-iucivity of Dominion industries is the prcrogaiivc of New Zealand citizens, and if given a rnan- '■ dale by Ihc electors a Labour Government wnuld I'iso i:o time in put Liv such a policy into operation.