ALWAYS WRONG?

Evening Post, Volume CXVI, Issue 131, 30 November 1933, Page 12

ALWAYS WRONG?

The line of criticism taken by the Leader of the Opposition last night in his references to interest reduction was surprising. The Labour Party was formerly in the habit of inveighing" against the investor, the lender, the mortgagee, and everyone 'who received interest- Its last election platform contained provision for reduction of interest, by voluntary means if possible and if not by compulsion. Last night Mr. Savage declared "that the Local Authorities Interest Reduction and Loans Conversion Amendment Bill was not a solution of anything. It was no use helping anyone to reduce interest rates and leave others where they were before. If all were not dealt with in equal proportion, one party to the deal must be at a disadvantage.

The Bill was part of a fairly substantial line of legislation in the ■■ wrong direction. When the Government reversed gear and drove for all it was worth* in the opposite direction jt might get somewhere. • :

But what of Labour's advocacy of interest reduction? Was that all wrong, too? We are not defending the Government's policy. When Labour said that compulsory interest reduction by breaking contracts was right we disagreed. We were no£ convinced when the Government decided to adopt a similar policy. But it is strange that the Labour Party should say that the policy is wrong just when the Government has come to the conclusion that it is right. Possibly Mr. Savage has it in mind that if the' Government can be persuaded to reverse gear again and drive for all it is worth in another direction the Labour Party may get somewhere, and the Government get somewhere else.