COMMON-SENSE

Evening Post, Volume CXII, Issue 122, 19 November 1931, Page 12

COMMON-SENSE

"There is only one way to carry on this country, and that is to carry on as an individual, and that I shall endeavour to see done." The statement quoted is the essence of the Prime Minister's policy for lifting the country from the depression. Many people, having made their first acquaintance with political economy when the depression Jut New Zealand, are hypnotised by vague terms and formulas which they do not fully understand. The Labour Party is quite willing to help in the process of hypnotism. But when we get facts down to bedrock the principles which apply to the business of an individual apply also to the business of society. "Credit," says Labour, "is needed," and proposes to make it available by tampering with security. What individual would be so senseless as to go to a lender and say: "I am in debt because I have been spending too much. I cannot pay interest on what I owe, so I am going to refuse. Now I want you to lend me more, so that I can go on spending." Surely the best way to re-establish credit is to give certain proof that the debts now incurred, will be met and to reduce expenditure so that this may be done. "We will honour our obligations to the letter," said Mr. Forbes. No one would dispute that this is the honest course for an individual—and the safe course—and it is the honest and safe course for the individuals who collectively make up the State.