LABOUR POLICY

Dominion, Volume 30, Issue 264, 4 August 1937, Page 10

LABOUR POLICY

Philosophy of Present Government PEOPLE SAVING MORE Prime Minister’s Reply To Mr. Hamilton “I have to thank the Hon. Adam Hamilton, Leader of the National Party, for his tribute to the achievements of the Labour Government and the new conditions of prosperity largely brought about by its policy,” said the Prime Minister, lit. Hon. M. J. Savage, when commenting last evening on the Opposition Leader’s speech ab Palmerston North on Monday night. ‘lt. is quite true, as Mr. Hamilton has said,” continued Mr. Savage, ‘‘that ‘we are living in a favoured land and our generation is more favoured than at any time of our history.’ One has only to look at any community in New Zealand to-day and, contrasting conditions against the bleak circumstances a few years ago, when neither the old nor the young generation was favoured, to see how much the people are appreciating the results promoted by the Labour Government. Bub still Mr. Hamilton is not satisfied, and shows some anxiety about what he calls the new philosophy that spending is better than saving. ‘Spending is very nice,’ the Nationalists’ leader says, “but we should have a little for old age.’ “The only difference between the National Party and the Labour Government as far as both old and new philosophy is concerned, is that the Government believes in helping the people as a whole to spend more and to save more, and also have a little more for old age. And that is not a dream; it is an actuality. People Now Saving More. “When Mr. Hamilton was Post-master-General in the Coalition Government it was believed and declared that savings represented a barometer of economic conditions. It was unfortunate, of course, tihat during a considerable portion of his administrative period ttiat barometer was always falling. What has it recorded ■ since the Labour Government assumed office and made an end to depression? It has shown, and still shows, that the people have saved and are saving more than at any.time in the past eight years. “In the Post Office Savings Bank alone 'the number of new depositors in 1937 was 40,186—0 r 34 times as many as the number of new depositors in 1934. Since the dismissal of the Coalition Government in November, 1935, the gain in numbers has been progressive, almost doubling in. the. first year of the Labour Government. A similar increase in proportion -to the extent of business has been recorded by the Trustee Savings Banks. “The total savings in all the savings banks have increased from £52,498,159 in 1933, up to £70,545,663 this year. Since the restoration of the cuts in salaries and wages .and. the employment of at least 20,000 more workers, the gain in the peopled savings has been close on £10,000,000. “Now look at the contrast in deposits,” continued the Prime Minister. “In 1933 the deposits for the year in the Post Office Savings Bank aggregated £16,933,176; .in 1937, the annual total was £30,676,967, an increase of £13,743,791. “At no period since the Labour Government came into office have withdrawals exceeded deposits. In fact, the excess of deposits over withdrawals this year was £3,634,966. And the savings bank barometer this financial year is steadily rising to a record level. These results should give Mr. Hamilton a newer philosophy to ponder over. One might have thought that with so many new depositors the average amount credited to each depositor might have been less, but actually it has increased from £52/14/7 in 1933 to £65/18/4 in 1937. Life Insurance Expansion. “A complete record of life insurance business up to date is not yet available, but here again the expansion of this form of the people’s .saving has been substantial Seven of the largest ) companies have recorded the issue of 31,021 new policies in 1936, as against 24.716 in 1935, this being an increase of 30.33 per cent, in the amount insured. “There is no end to the evidence of better times and increased savings, as well as increased spending, and, inci- , dentally, increased profits. As for the necessity of ‘having a little for our old age, the Government’s proposed national supperannuation fund will not only promote that end, but will encourage the people to save. “I agree with Mr. Hamilton that ‘politics' is a serious business,’ ” the Prime Minister added. “The Leader of the National Party and his friends know exactly how serious politics can be, and. particularly for any Government that does not take serious heed of the needs of all the people.”