DOMINION TOPICS

Dominion, Volume 33, Issue 147, 16 March 1940, Page 15

DOMINION TOPICS

Reserve Bank Credits. While Mr. Nash admitted that taxation would not fully meet the requirements- of war, he- would only say that borrowing will “probably” be necessary, would only suggest that, “under certain circumstances,” an internal loan might bo “desirable and beneficial,” and declined to commit himself on the relative advantages of such a loan and of Reserve Bank credit: “The use of the credits of the Reserve Bank is not necessarily a bad thing, any more than is the raising of a loan by public subscription.” This is far too oracular. The Minister might have let it be seen that he has grasped the connexion between financial policy and price policy; but he refused the opportunity. He ought not to have spoken so warily of internal borrowing, which is unavoidable and can be as salutary as it is necessary; he ought not to have exposed bis addiction, even in general theory, to the exploitation of Reserve Bank credits, the abuse of which has brought the country to anxious disillusion. In general, therefore, while saying little to illuminate financial policy, Mr. Nash said much to create fears both of heavy tax increases and of an inflationary credit policy. They may prove to have been immoderate; but the point is that he should, if they are, have guarded against them. They are depressive and dangerous; and they deter the voluntary help for which he appealed.—“ The Press,” Christchurch. “The Time Not Ripe.”

The population problem, concerning which grave words were spoken at the Rotary Conference this week, is like the weather—there is, from time- to time, considerable talk about it, but no one does anything about it. Political and other loaders occasionally draw attention to the low birth rate, and declare that if that rate does not rise, or even if it does, the population of the Dominion must be increased by immigration. Such declarations meet with the concurrence of those who think about the matter at all, but they are not followed by action. Usually someone discovers that “the time is not ripe.” It was not ripe when the Dominion was in the throes of an economic depression, nor has it ripened perceptibly during the subsequent years of relative prosperity. And it is quite certain that someone presently will assert that it is impossible for the ripening to take place in wartime. The conclusion to be drawn from this is that New Zealanders do not admit that (here is a population problem, or, if tliev do admit it, that they are resolved to ignore it. As to the existence of the problem there can be no doubt. New Zealand is facing at only a few years’ distance the possibility of . a stationary and even of a declining white population.—“ Auckland Star.”

Friendly Society Fears. The grave fears that were entertained by the friendly societies' about the damaging influence of Social Security legislation on the movement have been fully realized. A report from the management committee of the Ashley district Oddfellows’ conference shows that in 193 S the now entrants fell to G2, compared with 124 in 1937, and that the figure slumped in 1939 to a mere 11 new members. Meanwhile the secessions or resignations increased from 21 to 53 in the first year of Social Security, and to 70 in the second year. Such results were confidently predicted from the beginning, and it was one of the tragedies of the Social Security scheme that it provided for no cooperation with a great and beneficent organization whose machinery certainly did not require duplication or deserve dismantling. It would not be true to say that tilie societies today are superfluous, for Social Security does not give -anything like the advantages obtained by the societies or even what it set out to give. But no working man can pay heavy 7 taxation for Social Security and lodge dues as well, and it would not be unreasonable to repeat the prediction that a decade may see the end of the friendly society movement.—“ Christchurch Star-Sun.”

Lending For Defence. £1,010,000 is required to square the War Expenses Account at the close of the year three weeks hence. Mr. Nash expressed the hope 'that this deficit would be covered by further gifts and interest-free loans before the expiry of the period. To judge by the voluntary assistance already given to the Treasury, the objective can be reached—and it should be reached. Next financial year, beginning on April 1 Mr. Nash roughly estimates war expenditure at £33,000,000, the British Government finding £20,000,000 by loan for overseas purposes, leaving £13,000,000 to be raised internally, or over £1,000,000 a month. However the money is found —Mr. Nash spoke of taxes, borrowing and State economies—a heavy strain will be placed on the national economy. Sacrifices will be required of everyone, but all should accept them with cheerful resolution as part of the debt owed to the young men serving in the forces. Mr. Nash especially calls on those with the means, large or small, to volunteer the use of their savings free of interest for the same reasons and the same ends as others are risking their lives. There need be no question that his call will be heard and it will evoke the stronger response as the people see that tlie Government itself is equally bent on saving for the paramount business by eliminating waste, stopping spending on non-essentials, and diverting labour and resources to productive ends. State must co-operate with citizen to obtain that maximum result which is imperative.—“ New Zetaland Herald.”

Bureaucratized Waterfront. It was not only impossible that work on a normally busy waaterfront could wait upon the convenience of the Arbitration Court, but it was also unreasonable to expect the employers to make concession off hand when these might later be used to bolster a case for a new agreement. The Government had no option but to take a most serious view of the Auckland union’s attempt to force its demands on the industry by even a partial resort to the strike weapon. specially in a time of grave national emergency. when anything in the nature of go-slow tactics must, seriously hamper the war effort, here as well as in Great Britain. What passed :’.t the meeting at which Mr. M ebb and Mr. Sullivan addressed tlie men lias not been 'divulged, but it will have been well if, as reported, tlie Ministers examined the situation frankly and as frankly defined the Government’s attitude. How the control that is to be exercised is to operate is not yet clearly indicated, except: that present award rates are to remain in force pending arrangements for Hie introduction of “co-op-erative principles” with guaranteed minimum rates of payment. The test of bureaucratic control will occur soon enough, in the working of whatever scheme the Government has in mind. In tlie meantime it may be hoped that there will bo an eu'd to interference with the vital functions of shipping at all porta.—“Otago Daily Tinies.”

Buying British. The war has not reduced, but increased, New Zealand's willingness to “buy British,” but it is notorious that the ability to buy abroad is severely restricted by the import licensing system. The prime question for importers now is not where to buy. or what to buy, but how to get a licence to buy at all. It is a position which appears likely to continue. Sterling funds are mounting again—the Reserve Bank now has £lO,B-12,600—but the duration of a rise which is normal at this season is uncertain and a payment of £2,000,000 sterling in debt redemption this year, with four payments of £3,500,000 each to follow, can, unless there should be a great increase in export production, have only one effect. Money used for debt redemption in the United Kingdom cannot be spent, by New Zealand, on United Kingdom goods. On the other hand, in the Government’s order of preference in granting import licences the United Kingdom is placed second only to New Zealand, and Government leaders on several occasions have forcibly emphasized the necessity of “buying British,” for New Zealand's sake as well as for the United Kingdom’s. But the wherewithal to buy can come only from maintained and increased production, and in its efforts to achieve that object the Government still has much to do. —“Auckland Star.” A Concession to Labour?

In appointing his successor in tha Arbitration Court the Government has made an important departure from precedent. It has selected a man who, though he is qualified in law, is not a practising barrister and has established his reputation in an entirely different field —the public service. Mr. A. W. Tyndall has had an unusually varied career. He ha s studied law, engineering and ’accountancy, and has had long experience as a civil engineer, both in New Zealand and overseas. For the last six years he has been permanent head of the Mines Department and latterly he has in addition directed the Housing Construction branch of the State Advances Corporation. Since the outbreak of war he has acted as Controller of Building and Controller of Mining Production. In a review of Mr. Tyndall’s career, printed recently, the Minister of Labour referred to his “practical outlook,” “knowledge of how to handle men,” “executive capacity” and “breadth of outlook” in a way which suggested that these qualifications have weighed more heavily with the Government than legal training. Thus while the Government has not altogether accepted the recommendation of the Federation of Labour and other influential Labour bodies that the judge of the Arbitration Court should be a layman, it appears to have gone some considerable way toward meeting .their wishes. —“Southland Times.”

“Pay-As-You-Go” Financing. Mr. Nash insisted that the Government contributed to the pay-as-you-go policy of financing the war. Actually, of course, this would involve the rejection of all loans and financing the whole cost out of revenue. ' This is neither practicable nor desirable, but it is essential that the cost, whether by way of revenue or by loan, should come out of current production. The Minister appreciates this point, and indeed emphasized it, for he made it clear that the use of Reserve Bank credit—which has been advocated in some quarters—would only lead to an even more dangerously inflationary situation than that which has already been created. ... It must be

clear that a small country like New Zealand cannot possibly face an additional expenditure of £33,000,000 a year without some dislocation of its economy and without some sacrifice. The questions that remain are how the economy is to be readjusted to wartime conditions and how equality of sacrifice is to be secured. So far, the Government, preoccupied with more immediate problems, has had little opportunity of dealing with these aspects, but Mr. Nash’s broadcast may be taken as an indication that there is to be no further .delay and that in the not-far-distant future the public will be told what is expected of it.— “Gisborne Herald.”

Censored War News. A few weeks ago complaints were made in Australia that -information about the extent' and nature of Britain’s aid to Finland had been censored in spite of its free publication in London. Most’of these details were later released; but in the meantime an unfortunate precedent had been established. There is no- : reason why information of this kind should be withheld from the Dominions, where the freedom of speech and discussion is quite equal to that of Britain. Indeed, it is increasingly important that public opinion should remain enlightened. Events which might be surprising and dismaying if they came suddenly, are easier to accept and understand it they can be recognized as the result of a process which has been watched through all its stages. The safest method under present conditions would be to allow the transit of all news items which appear in the British Press. Empire correspondents- are sufficiently experienced to lie entrusted with the work of selection. They understand the outlook of tlie Dominions and are trained to discriminate between authoritative and irresponsible news items. Officials are inevitably cautious, and once they begin to decide between discretion and news value they are certain to interfere in eases which later appear trivial or suspicious.—“Southland Tinies.”

State Control of Fish. Lack of co-operation is evident as being the prime factor in the disputes in which tlie fishing industry is at. present involved, but so many are thy ramifications of tlie argument that it seems difficult at first sight to place the blame on any one section. The main figures in tlie rather sorry tragedy are the Government, the Fish Advisory Committee, the Seamen’s Union, the retailers, tlie wholesalers, and the producers. 'Within the past three weeks the last three, at the request of the first two, had found a way to work in perfect, amity, at least in Dunedin, that seemed satisfactory. The public benefited by cheaper prices, and the Seamen’s Union, except in the opinion of a few interested, had little right to intervene. But now this system has been overthrown, this time by the Director of Marketing, Mr. F. Picot, to whom Hie Advisory Committee forwards its recommendations. He intends to replace it with another, the details of which: are not yet decided upon. The only reason that could account for this action, in so far as it represents the wishes of tlie Government, is to lie found in the oftrepeated statement that Labour is going ahead with its policy of socialization, and it is to lie surmised that fishing. the first licensed industry, has been chosen as the “white rabbit fot the experiment.—Dunedin "Evening Star."