“TURNING THE CORNER”

Dominion, Volume 21, Issue 240, 11 July 1928, Page 10

“TURNING THE CORNER”

DISAPPEARANCE OF UNEMPLOYMENT THRIFT POLICY PAYS MINISTER’S HOPEFUL PREDICTION A bright picture of New Zealand twelve months hence, with unemployment a negligible .quantity, was painted by the Minister of Agriculture (Hon. O. J. Hawken) in the course of his Address-in-Reply speech in the House of Representatives yesterday. The Minister’s hopeful predictions were based on tho maintenance of the present policy of seeing that income exceeds expenditure.

Once politics were allowed to enter into the affairs of the banking institutions, it must be fatal to the success of the finances of the country, said the Minister. The Labour Party bad tried to blame the Government for the policy of the banks in increasing the fate of interest. He presumed that party would give the banks credit for the reduction announced at the week-end.

The Leader of the Opposition (Mr. H. E. Holland): Did not the Government interfere—with the- moratorium? The Minister replied that that was quite a different matter. In a national crisis' the Government had a right to interfere. "The Government gave them the lead to increase the rate of interest,” interjected Mr. E. J. Howard (Christchurch South). . A member: Rot!

Mr. Speaker: Order! Continuing, Mr. Hawken said that if revenue continued to exceed expenditure the. bank rate must fall again. The best thing that could happen for New Zealand would be a fall in the rate of interest for mortgages. That would, no doubt, have a tremendous effect.

The Leader of the Opposition: Could not the State Advances Office give a lead there? “Jf money falls and the bank rate becomes less, there is no doubt that industry will be encouraged,” continued the Minister. “One of the first results will be that unemployment will cease.

If Hie balances remain as they are to-day, I think that within twelve months there, will be no uilemployment in this country.

A good many people who are now neglecting certain work that could be proceeded with will then not be able to get the labour to do it. Before very long, if the/pebple of New Zealand stick to their present intention, as shown by the excess t>f income over expenditure, money will be • cheaper, and the increase in production and the evident determination of the people to keen down their expenditure are to me very good signs that before very long this country will have generally turned the corner, not in the way we experienced a few years back, but, as the figures go to prove, the volume of production thft time has so increased that the basis rests on a sounder footing than before. This time it is not only good prices, but added production.”