NEW LEASE OF LIFE

Evening Post, Volume CXII, Issue 49, 26 August 1931, Page 9

NEW LEASE OF LIFE

FINANCIAL DEBATE

LAST NIGHT'S SPEECHES

WAR DEBT REPAYMENTS

The Financial Debate, which was interrupted last Friday in the House of Representatives through the introduction of the motion for sotting up the inter-party Committee to inquire into the economic position, took a new leaso of life last night, when the views of four speakers were hoard on various phases of national finance.

Mr. W. JCash (Labour, Hutt) said the position of the farmer was not as serious as that of the worker, as the farmer, was not faced with starvation and with the possibility of being thrown out of his homo. He suggested that the Government should give tenants protection such as was given to mortgagors. It was said that the farmer should have security of tenure, and the same thing applied to the worker. The relief workers should be put on standard rates of pay, at least. The Government should do something to assist the unemployed youths. Up to the present nothing had been. done.

The Minister of Labour (the Hon. S. G. Smith): "That is incorrect."

Mr. Nash criticised the efforts of the Unemployment Board to deal with the problem. Workers were being evicted from their homes every week in the, Hutt Valley, but the- Government was not taking any action. The Government should put into immediate effect the principles contained in tho Transport Licensing Bill. Ho instanced the traffic on the Hutt road, and said that at present they had trains, buses, and taxis running to the Hutt Valley. The earliest opportunity should be taken of remedying tho existing chaotic condition. USE OXJR OWN CREDITS. Colonel T. W. M'Donald (United, Wairarapa) said it was argued that inflation was the cause of tho present economic tronble, but he contested that view. He advocated rectifying our difficulties in New Zealand internally. Our troubles were due 75 per cent, to the crash in tho price of our produce overseas, and the remedy was to use our own credit instead of depending on overseas sources. . I Mr. A. M. Samuel (Reform, Thames): ] "Will you submit your scheme to the inter-party conference now sitting?". Colonel M'Donald: "Yes, and convince them of its feasibility." He referred to international finance, and said that the United States was exacting all she could from Britain in debt repayments. Mr. P. Fraser (Labour, Wellington Central): "Has not America been very generous to Britain in the last few months?" Colonel McDonald: "She has not been generous to Britain in any shape or form." Not only was she exacting every pcfund of war debts, but she had the audacity to endeavour to obtain from Britain a very heavy sum in coml pensatkm for American shipping affected by the war when the United States was neutral. Captain H. M. Rushworth (Country Party, Bay of Islands): "Was not that good business?" "It would have been for her," was the reply, *'but it didn't como off." Not satisfied- with exacting pound for pound, he went on, and insisting on the payment of war debts at the rate of. £100*000 a day, America fenced herself round with tariff walls to keep British goods out. She made Britain send gold in payment, and that was the principal cause of the trouble today; the gold reserves- in England had been reduced to such a low ebb that the ban.kjir)rere in" dire distress, because Am'eifica' would not allow Britain to pay\what she owed in goods, as Germanjjr!~was allowed to d 0.," A^voice: "What good is gold to America?",. .... , Colonel M'Dbnald: ".That is another matter, but it is not relieving her unemployment." A VICIOUS SYSTEM. America, he said, had created a world shortage of gold; 50 per cent, of the world's gold was lying in the American banks immobilised, and the result was the price of gold had gone up outside America and the price of goods had fallen. It was a vicious system of deflation. The recent step taken by President Hoover in respect to clebt repayment was a very fine one, but it was a selfish gesture really, although it suited us admirably.

. Mr. Speaker pointed out that Colonel M'Donald was speaking of a foreign Power whicjh was in friendly relations with Britain, and suggested that he should couch his language in such terms that no exception could be taken to his remarks by the representatives of U.S.A.

"I will say, then," said Colonel M'Donald, "that the :motive is solely for ths purpose of making certain that America gets all the money that is owing to her." He advocated the cancellation of all war debts. Mr. W. Nash (Labour, Hutt): "Would you cancel all war bonds?" Colonel M'Donald: "That is quite a different question, I am not prepared to give an answer to that offhand." He repeated that war debts should be repudiated. Mr. R. Semple (Labour, Wellington East): 'If you had said that at the end of the war they would have quartered you.'' Colonel M'Donald described the recent £ per cent, reduction in interest as a miserable pittance; it ought to be doubled right away. "It is the interest charges," he added, "that are worrying the people down." Mr. J. A. Nash (Beforrn, Palmerston): ""What action do you advocate?'.' Colonel M'Donald: "An internal conversion right away—call it repudiation if you like." Mr. Samuel: "Did you get your ideas from Professor Copland?" UNEMPLOYMENT AIDS. Mr. G. R. Sykos (Reform,' Masterton) said, he had intended to criticise the Government's acts of omission and commission, but seeing that a political armistice had been declared ho would refrain from criticism. Ho expressed the hope that the.Unemployment Board would continue the 4A and 4B schemes for another month or so, as there was still a lot of productive work that could bo done apart from seasonal occupations. .He refuted■ the suggestion that unrestricted immigration had been responsible for unemployment, Mr. Sykes urged the further development of the secondary industries, and dwelt on the possibilities of the cement industry. If local bodies could get together and decide to use cement in place of bitumen, he was sure the cement companies would be prepared to reduce the price by at least £1 per ton: The pulping industry was also capable of development. He expressed the belief that the national wealth had been reduced by about half in recent years. The economic difficulties of the country wore largely due to the wholesale importation and use of motor-cars and motor-lorries. Too much money liad been sunk in foreign motorvehicles. He defended the high expenditure on education, and said he did not see how it would bo possible to reduce tho vote for primary education,

at least. At the same time he -welcomed the proposal to set up a Commission to investigate avenues of economy. BIG WASTE OF MONEY. Mr. J. A. Nash (Reform, Palmerston) said New Zealand was faced with tremendous' opposition in the marketing of its produce, and little hope could be held ojtt for the prices the farmer would receive in the near future. The Government would have to increase the assistance .which was being given to the farmers. Mr. Nash referred to the South Island Main Trunk as a white elephant, and said that if the line were ever -completed it would eventually have to bo closed down. .It would be interesting to know how much money had already been spent on it. ' They could only hope that the E.iilway Board would recommend to Parliament that the work should be stopped. The line was resulting in a tremendous waste of money. The taxation proposals of the Government should be closely scrutinised with a view to ascertaining if every alternative had been considered. He favoured a special tax on the profits of the- big oil companies, which wore making huge profits. If such a tax were levied there would be no need for the taxes on tea and sugar. Money could be saved by cutting out the construction of new roads and bridges, and he suggested that the Government should approach the motorists to secure their co-operation. Mr. Nash advocated the placing of a duty on foreign cheese crates and butter boxes, and said that if that were done 1800 men could be employed in New Zealand the whole year round: Tremendous increases had taken place in taxation in recent years, and what drop thero had been in the cost of living had been at tho expense of the primary producer. Mr.' Nash stressed the need for more being clone to assist those who were unfortunate enough to be out of work. The debate was adjournc'l.