STILL POLITICAL

Evening Post, Volume CXIV, Issue 130, 29 November 1932, Page 6

STILL POLITICAL

• Labour battalions have entered the Motueka by-election fight in the political party spirit which Labour lias shown throughout the crisis. This is no cause for surprise. Indeed,, it would be, surprising if Labour were to do anything else. Having directed its greatest efforts toward discrediting the Government it is not to be expected that the party will now do anything else than make a' great effort—not to save the Dominion but to register, popular discontent in a by-election victory.'. Mr. Holland's campaign in support; of Mr. Webb is in keeping with! this spirit. There is no suggestion of any .willingness to co-operate with the Government. Mr. Holland has published his plan and if the Government does not adopt it he will not help. The plan is unsound because it takes no account of the fact that our troubles are chiefly due to the reduction of national income by the fall in value of that part of our produce which is sold overseas. "To increase the amount of money in circulation and to keep on increasing it in ratio .with any increase in production" is Labour's idea; based on the hypothesis that purchasing power must keep pace with production. But how is this to be applied when we depend so largely upon the purchasing power of people .in overseas markets? By internal manipulation of currency we can raise the local price of butter arid meat; but we cannot compel buyers overseas to accept our own ideas of value. Until Labour /can explain away this basic weakness of its plan its schemes are impracticable and dangerous.