PUBLIC CREDIT ADVOCATED

Press, Volume LXXII, Issue 21858, 11 August 1936, Page 17

PUBLIC CREDIT ADVOCATED

LETTER TO THE PRIME MINISTER

election promises recalled

The Government’s action in raising revenue by increased taxation instead of by the use of public credit was criticised at a largely attended public meeting last evening, over which Mr H. Bruce presided. In a letter addressed to the Prime Minister (the Rt Hon. M. J. Savage) it is stated: “This public meeting of electors now call upon you to honour your election pledge as under: Not to increase taxation; the use of the public credit in the tetter and spirit in which you promised.”

The letter opens by quoting a statement made in a leaflet published by Mr Savage: “The money system should be based on goods and services. This would enable payment from the public credit to be made to farmers and others in equitable relationship to services rendered, and without increasing taxation.”

“You have stated from the public platform that there are three ways of obtaining money for the purpose of implementing Labour’s policy—borrowing, taxation, or the use of public credit,” the letter continuer. “You stated definitely that Labour intended to use the public credit. The sequence in which this statement was made leaves no room for doubt that you regarded the use of the public credit as something different from borrowing. Your statements throughout New Zealand support this contention, and amount to the election pledge on which you obtained power.” „ The letter will be forwarded to Mr Savage.