OPINIONS AT HOME

Evening Post, Volume CXXIII, Issue 47, 25 February 1937, Page 8

OPINIONS AT HOME

LETTERS TO THE PRESS

(From "The Post's" Representative.) LONDON, February 3. ,

A criticism of the policy of the New Zealand ■' Labour Government and, at the same time, a comment upon the broadcast made recently by Mr. W. Nash, Minister of Finance, has .been published by "The Times."

Mr. Henry Studholme, who has relations in Canterbury, wrote, in a letter:

I "No mention was made of taxation, or of the effects of the new legislation on employers of labour. Letters which I receive from New Zealand do not express the same satisfaction with the present state of affairs as is apparently felt by the Finance Minister. The last Government had the unpopular task of introducing economies and retrenchment in order to carry the country over the slump. The Labour Party took advantage of this fact to promise increased purchasing power, and, were returned at the 1935 elections with a huge majority. Socialism, which is now their declared object, was not mentioned by their candidates. Since their election they have set about introducing a fullblooded Socialist programme.

"The owner of a small sheep and dairy farm writes that her rates and taxes have gone up from £190 to over £1000 a year since the present Government came in. After struggling with m6rtgages and a series of bad years she was at last beginning to see daylight. With this new burden, however, she is unable to carry on, and is preparing to cut up her property into small holdings'-if she can find any purchasers.

"If it is the intention of the present Government in New Zealand to reduce all owners of land and capital, above a certain figure, to the status of small holders, they may no doubt succeed. No doubt, also, the Government sincerely believes in the wisdom of its policy, though in its enthusiasm it seems to have shut its eyes to the probable result; and one wonders how long a country like New Zealand, with a population of only 1.500,000, and a debt of nearly £300,000,000, will be able to stand this state of affairs. Students of politics will watch this Socialist experiment with interest."

A correspondent of the "Baptist Times," however, finds cause for enthusiasm over Mr. Nash's broadcast, especially when the New Zealand policy is considered together with that of Sweden.

"They are," he . declares, "the two countries where economic conditions make for the happiness of the greatest number possible. Sweden is the most prosperous country in Europe; New Zealand is the most prosperous of British Dominions. Sweden overcame the world-wave of depression by keeping up the purchasing power of the agricultural community and by expenditure on encouraging house-build-ing, erecting public works, and subsidising private enterprise until the recovery of export trade began. The Government aimed at distributing incomes more widely and so increasing purchasing power. It found a middle way between Capitalism and Socialism, and averted a crisis which threatened the whole population."