GUARANTEED PRICES. EXCHANGE RATE A HIGH STANDARD

Evening Post, Volume CXX, Issue 116, 12 November 1935, Page 6

GUARANTEED PRICES.

EXCHANGE RATE

A HIGH STANDARD

Dealing with the Labour Party's guaranteed prices proposals, Mr. Nash said the proposal had been carefully worked out. It was essential that every man, woman, and child should have the necessaries of life; after they had that it would not matter if some did get a surplus. Every person able and willing to work should be guaranteed an income sufficient to provide him and his dependants with everything necessary to make a home and home life in the best sense of the terms. The quickest route to such objectives was guaranteed prices to farmers for the supply of primary products to satisfy the internal and external requirements of the Dominion, and a statutory minimum wage or salary based on the sum required to provide everything necessary to an adequate standard of living. It might be asked: Why should they have guaranteed prices? The farmer had to be placed in a position where he could produce the things that were necessary to the country. In 1929 butter had reached 184s on the London market; in 1934 it had fallen to 66s 6d,

and no one could say that the primary producers could carry on with such a drop in their returns. Mr. Nash discussed how the farmers' income had gone down, although their production had increased, and advanced several arguments in favour of orderly marketing. He outlined schemes that had been tried to restrict production, and said that while food was being destroyed people were starving. The Labour Party proposed to work for one year on a guaranteed price for what was produced, and after that production would be according to the reciprocal agreements that would be arranged. If the price received overseas was below that paid to the producer there would be a debit against the Reserve Bank. That would mean that the Government would have to take over the Reserve Bank, but ttiat would not be difficult, because twothirds of the capital was already owned by the Government, and the Labour Party would purchase the other third at the market rate. In conclusion, Mr. Nash dealt with the need for national superannuation and national health service. He made an appeal for support for the Labour Party, and pointed out that the electors must support any Government if they wanted that Government to carry out its policy. After he had answered two or three questions, Mr. Nash was accorded a vote of thanks and confidence by acclamation, there being no dissentients.

SUGGESTION DENIED

NO ADVANCE HINTS

MONETARY PROBLEM

(From "The Post's" Special Reporter.) MARTINBOROUGH, This' Day. An emphatic denial that anybody had secured any monetary advantage out of the raising of the exchange rate was given by the Prime Minister (the Rt. Hon. G. W. Forbes) when addressing a meeting at Martinborough yesterday. "I want to give an emphatic* contradiction of the suggestion that advance information was given in reference to the exchange rate," said Mr. Forbes. The matter was dealt with in strict confidence between the parties and the Government. It is said that some people made thousands of pounds out of the business, but that is not correct. We could not give any advance information any more than we could when we were altering the tariff. (Applause.) It is an easy thing to go round making charges against the integrity and the honesty of the Government, but it is not a fair thing, and it does not do any good to the country. So far as the Government is concerned over the exchange rate, it acted in the most straightforward way. I would not be a party to anything else. I think the people who know me, know that I wouldn't stand for anything that was not in the public interest." (Applause.) Mr. Forbes went on to say that the raising of the exchange rate had been of the greatest benefit to the farmers. He proceeded to pay a tribute to the trading banks and their actions during the depression, and said the issue at the coming election would be- whether they were to continue the policy of sound finance which had been followed or whether they were going to countenance the issue of "phoney" •money. They now had the Reserve Bank to advise them as to financial conditions. The Reserve Bank governed the speed at which the machine should move. A voice: Get the Jews out of it, and you'll have more say. Mr. Forbes: Well, I have found that some of our best citizens are of Jewish extraction. It does nat mean that because a man is a Jew he is not publicspirited. The voice: Get them out of it. Mr. Forbes: I have a great admiration for the Jewish people. The voice: So have I. I've got to. (Laughter.) Mr. Forbes remarked with a smile that it would probably be found that there were more Scotchmen than Jews controlling the finances of the world. (Laughter.) The Prime Minister refuted any suggestion that he had broken his promise over the exchange issue, and said it would have been improper for him to give information in advance. Australian farmers had had an advantage of 15 per cent, over the New Zealand farmer, and the Government had considered that the best way to assist the Dominion producers was to raise the exchange rate and so place him in an equal position with the Australian producer. The Government's action had been followed by a great deal of criticism from, people who were trying to make political capital out of the issue. The fact remained, however, that the farmers had received a direct benefit from the raising of the exchange rate. There were numerous dairy factories which had been able to increase their pay-out by as much as £50,000 in one year. Could it be said that the suppliers to those factories would object to the Government's high exchange, policy? It was ridiculous to say, Mr. Forbes continued, that New Zealand- had broken the spirit of Ottawa by increasing the exchange rate. No country in the Empire gave greater preference to Great Britain than New Zealand.' The policy of preference had been in operation for thirty or forty years. Stress was- laid by Mr. Forbes on the dangers of changing the monetary system. There was a lot of talk about costless credit, but it was a well-known fact that they could not get anything worth while for nothing. Somebody would have to meet the cost. What would happen would be that lots of notes would be issued and somebody would have to pay for them. Germany was a classical example of the dangers of inflation, and they did not want anything like that in New Zealand. . „ Mr. Forbes spoke on similar lines at a meeting of about sixty settlers at Pihautea earlier in the afternoon. At both meetings Mr. Forbes received a most attentive hearing, and he was frequently applauded. He was accorded unanimous votes of thanks, and confidence.

During his visits to Martinborough and Pihautea, Mr. Forbes took advantage of the opportunity of speaking personally to a number of settlers and discussing their problems with them.

DOMINION'S PUBLIC MEN

(From "The Post's" Special Reporter.)

CARTERTON, This Day. "The people of New Zealand are fortunate in their public men," said the Prime Minister (the Rt. Hon. G. W. Forbes) at Carterton last evening' "There is a very high standard of public duty and integrity so far as members are concerned, and this country is fortunate in that respect. I have been in Parliament for 27 years now, and not one case has come under my notice in which any man has been guilty of using his position as a member of Parliament or a member of Cabinet for the advantage of his own business." (Applause.)