NATIONAL DEBT

Evening Post, Volume CVI, Issue 55, 13 September 1928, Page 7

NATIONAL DEBT

EFFECTS OF BORROWING GOVERNMENT CRITICISED (By Telegraph.—Press Association.) STRATFORD, 12th September. Mi-. AY. J. Poison, president of the New Zealand Farmers' Union, opened his Stratford campaign at Toko last night with a. strong attack on the land settlement policy of tho Government. He quoted from speeches of tho Hons. A. D. M'Lood and O. J. Hawken showing that tho chances of successful settlement uuder the existing economic conditions was very small and that settlement was at a standstill. This was due to the policy of the Government, whose expenditure on railways such as the Taupo and Gisborno Hues, and on hydro-eleetrieity, was unjustified. He claimed that .the burden of costs, including taxation, was creating general stagnation and criticised the fina'nee policy of the Government. Nearly seventy-nine millions of loans would .have to bo renewed in the next three years in addition to new loans, said Mr. Poison. He also stated that the last loan of five millions had been less than Mr. Stewart previously budgeted for because of London's nervousness. He characterised as absurd Mr. Stewart's claim that he, had got away from the five per cent, rate, quoting the Budget and the London "Times" financial column in proof of his contention. The fact was that the country was rapidly borrowing until the total Public Debt stood at 310 millions, including the local body debt. More money was going out of the country in payment of overseas interest and for imports than was being received for exports. Mr. Poison gave comparative figures for seven years in proof of this, and showed that even this year, when the balance of exports over imports was remarkably high, this was the case. The national expenditure was thus greater than the national income, and borrowed money was being use to keep up the appearance of prosperity. It was useless for the Government to attempt to camouflage the position. The question of laud settlement must be treated nationally, said Mr. Poison, and he indicated methods adopted elsewhere, and suggested that similar principles should be adopted in New Zealand. Ho also dealt with the rural credits legislation of the Government, accusing the Prime Minister of having broken his pledgo to the primary producers and traversing the weaknesses of the legislation. Mr. Poison concluded by urging town and country to wake up to the fact that the basis of prosperity was increased production and a greater flow of wealth into the country for the use of all. The Government's policy had, in spite of the huge expenditure of public money, failed to increase settlement by an acre in a country dependent on farming production for its exports.