"CAT OUT OF THE BAG"

Evening Post, Volume CXXVI, Issue 76, 27 September 1938, Page 18

"CAT OUT OF THE BAG"

MR. LEE'S NEW BOOK

LABOUR PARTY'S INTENTIONS

The cat was out of the bag and Mr. Je A. Lee, M.P., Parliamentary Undersecretary to the Minister of Finance, had let it out, in so far. as his statements in his new book "Socialism in IJew Zealand" clearly showed the Labour Party's intentions, declared Mr. 0. C. Mazengarb, National candidate for Wellington Suburbs, at the Royal Theatre, Eastbourne, last, night.* '. "I always did consider that the i>catter-cash policy of the Socialists must eventually lead to the disappearance of Post Office savings, the destruction of existing superannuation schemes, and the abolition of the right of inheritance," said Mr. Mazengarb. *'-■■ "When the present Government gave !us • comforting assurances that it did mot intend this result, I credited it with into this state without desiring it. But the new book, which Mr. <J. A. Lee (Parliamentary Under-Secre-*tary to the Minister of Finance) has ijust written, throws the spotlight on .ltd" the intentions of his party.' We lare able now to say on his authority Tthat they do aim at the destruction of jsavings and existing superannuation jfunds; they, do propose to abolish the jrighfr of inheritance. Mr. Lee has shown nis quite clearly what Mr. Savage meant ■*when he said he was not going to be 'harnessed to orthodox methods and would 'kick over the traces.' In this Inew book he has let the 'cat out of the Jbag' all right. Perhaps it would be 'jjinore correct to say that he has thrown 'lk spanner into the works, and that this ;is one of the reasons why the Governanent has hurried on the election.

ISSUE OF PAPER MONEY.

t Summed up, the Labour Party's.un•Ortho.dox ideas on finance (as expressed «by Mr. Lee) consisted in paying off old Sloans by the issue of paper money and Ithe financing of all further works by tthe same means. How much this paper i 'monfey'.would be worth when it came to ffiuying br'isd and butter and the^ther necessaries of life, Mr. Lee did not say, but he did contemplate that it would cause a run on the Post Office Savings Bank by depositors who would want to withdraw their money and send it out of New Zealand. Mr. Lee, however, chuckled over the fact that the Socialists would be able to prevent ttjis export of capital, by using the dictatorial powers which Mr. Nash took by his amendment to the Reserve Bank Act Mr. Lee proceeded to get some further humour out of the fact that the funds, which were held in trust by the Public Trustee for the payment of superannuitants and widows and orphans, were now controlled by the Socialists. He drew attention to the absurdity of a "Socialist Minister" being "the largest capitalist in New Zealand"—torn between a variety of loyalties. Mr. Lee spoke of the Public Trustee this way: "As trustee he: is interested in maintaining a high rate of interest for his beneficiaries, but as a Socialist Minister he should progressively reduce the rates on all funds required by the State and municipalities." Mr. Lee showed how the Socialists coUld get rid of that anomaly. He cheerfully contemplated the end of the system of inheritance, which, he said, is1 "a dying system." Under the national superannuation and sickness and"invalidity.,.benefits of the Social Security-Act, all widows and orphans, besides the aged and the sick, were to be consigned to the tender mercies of the State. - The plan (as revealed by Mr. Lee) was to make "such services ay charge on our annual accounts." Personal love and affection for those brought into the world was not to be extended beyond our lifetime; if we did > have anything at the end of our lives, we wbuld not be allowed to leave it.toour children.

IN STEP WITH THE SOCIALISTS.

Some people might say, "That's only Mr. Lee's view." But the things which Mr. Savage, Mr. Nash, and other Socialist's were saying and doing, dove^ tailed into that view. In writing his book, Mr. Lee has had the courage and the boldness to declare what the others were trying hard to suppress. If Mr. Lee was out of step with his colleagues he should either get out of the party or be put out (Applause.) But he was in step with the Socialists at Home arid in New Zealand, only he expressed 'himself in very plain, terms in the sanie -way as Mr. G. D. H, Cole, England's: vleading Socialist writer, expressed'*h'iinself in England. Mr. Cole had declared recently that if the 'change-over to- Socialism was to be accomplished .by gradual methods, instead of by; the sudden transition adopted in Russia, "some drastic form of taxation' on inheritance must be the principal financial instrument of the change." Mr. Cole advanced the Socialist theory that "the entire property of an. individual above a fairly small fixed amount, should pass to the State at death," subject only to an. annuity, on'a, portion, of the amount for one's lifetime. • A voice: He.can't take it with; him when he dies..: Mr. Mazengarb: You can't draw a red herring across the scent in that way, my good sir. Continuing, Mr. Mazengarb stated that Mr. Cole said: "By this method socialisation of the greater part of the wealth of the community could be accomplished very rapidly indeed."

WHAT FURTHER PROOF?

State employment, the Social Security Bill, "kicking over the traces," Mr. Cole's suggested inheritance tax and Mr. Lee's new book fitted in so nicely with the Socialist ideal of State domination. What further proof was needed? •No wonder that Mr. Lee said that "New Zealand is on the high road to Socialism." Mr. Mazengarb added that to be fair. to Mr. Lee, he did make a slight exception from- his attack on savings. for the benefit »£ Eost Office tfefiositors

when he said: "There is sanity in enabling every citizen —even in a completely Socialist legime—to have a small cash accumulation for occasional emergencies." He regarded "small cash reserve democratically spread over all the community" as an adjunct rather than ,a hindrance to a community engaged in social experiment He did not attempt to define what he would consider to be "a small cash reserve," but it was easy to see that this Socialist attitude to the Post Office Savings Bank was for purposes of political expediency during the changeover;

"What are we to expect from the Socialists when the experimental stage is over and they have gone 'the full journey?'" Mr. Mazengarb concluded.