GLUT OF PRODUCTS

Dominion, Volume 25, Issue 169, 13 April 1932, Page 10

GLUT OF PRODUCTS

Problems of the Day CURRENCY’ REFORMS Some Tasks for Ottawa Phases of the problems facing the country were dealt with by various members who continued the second reading debate on the National Expenditure Adjustment Bill in the House yesterday afternoon and evening. The adjournment was taken shortly before midnight until this afternoon. Captain H. M. Rushworth (C., Bay of Islands) said the Bill could be described as "deplorable inevitability,” and he was afraid that it was to be the forerunner of many other measures of a similar nature. He had an almost passionate belief in the sanctity of contracts, and the cutting down of monetary supplies to all sections of the community must inevitably weaken and finally destroy the whole social order. There was a world-wide glut of products, and New Zealand was no exception to the rule. Not a single industry was working full time, and there was ample evidence to show that the whole system was wrong. The problem confronting the world would have to be faced or there would be world-wide If the Dominion had set out to study the position and grappled with it a year ago she could have led the world, but she had lost the chance. The currency problem was the one requiring most attention, but New Zealand had let other countries get ahead of her in this respect.’ i Mr. W. J. Polson (Govt., Stratford) said he believed that a managed currency was possible? The question would be one of the great problems for discussion at Ottawa. Although an Empire-manag-ed currency might be possible, it was not possible to devise a scheme to operate within the Dominion. Export parity determined our local prices. The whole world would have to be convinced before they could adopt a plan that would be a benefit to humanity. Ottawa could not devise a plan that would meet the conditions of the whole world, even if the British Empire decided upon some plan of managed currency. Class Feeling Aroused. 'The Labour Party advocated higher wages and shorter hours, but how could Labour reconcile such talk with the facts in Australia and in other parts of the world? The stirring-up of class feeling would not help in the present crisis. Labour had no constructive plan to offer, and failed to offer anything but abuse and misrepresentation. He regret-ted-that Labour had not followed the course pursued by Labour leaders in other countries. . . The reduction in the soldiers’ pensions was criticised by Mr. J. A. Lee (Lab., Grey Lynn). The returned soldier, he said, would feel the maximum, effect of the Government's policy. Pensions were to be reduced for all time, but the reduction in interest rates was only till 1935. The Government’s policy, was causing wholesale private repudiation. The policy pursued by the Government would multiply the army of unemployed. Revenue From Bookmakers. “I do not think anyone in or out of the Government likes the Bill,” said Mr. K. S. Williams (Government,. Bay of Plenty). Mr. Williams suggested to the Prime Minister that he should give consideration to the question of securing revenue by the licensing of bookmakers. By legalising bookmakers the Government would only be legalising and bringing to the light o£-day what was already going on behind closed doors. He was not prepared to say what could be raised, but it had been suggested to him that £1,000,000 could be collected. Of course, reduced incomes had curtailed betting, ’but even if £250,000 could be raised it would be worth considering. After pointing out that the local bodies collected the fees from the licensing of hotels, Mr. Williams suggested it would be of assistance to them if its Licensing Act were amended to enable the location of hotels to be altered to where they were most needed. New roads had been constructed nt a considerable distance from the old settlements where hotels were located. As a result hotels were away from the main thoroughfares, and consequently lost the benefit of the custom of passing traffic. Fees could be fixed in accordance with the location of the hotels. Mr. C. L. Carr (Lab.? Timaru) said there was no need for the Government’s policy of destruction and despair.