STATE SOCIALISM

Evening Post, Volume CXXVI, Issue 80, 1 October 1938, Page 14

STATE SOCIALISM

DANGERS STRESSED

PROFESSOR ALGIE'S SPEECH

A NOISY RECEPTION

An audience of varied political sympathies gave Professor R. M. Algie, organiser of the Auckland Political Freedom League, a mixed reception when he spoke in the Wellington Town Hall last night. Ex(»;pt for the block of seats behind tlie stage, the hall was full, and the Mayor of Wellington (Mr. T. C. A. Hislop) presided. Professor Algie emphasised mainly the dangers of State Socialism, which he said threatened tlie Dominion, and in developing his own arguments quoted"several times from Mr. J. A. Lee's recent book. The majority of the audience was attentive, but there was a small but very vocal minority at the back of the hall which kept up a flow of comment and interjection at a fairly brisk tempo on occasion. The speaker smiled tolerantly, and in frequent instances he scored heavily at the expense of the interrupter.

Mr. Cheviot Bell, chairman of the Wellington executive of thd» National Party, under whose auspices the address was given, was on the stage, and introduced the following Nationalist candidates:—Messrs. W. Appleton (Wellington Central), D. P. Howlett (Wellington South), J. W. Andrews (Hutt), and W. L. Barker (Wellington East). "I have one great reason above all others for being present in this hall tonight," said Professor Algie. "I wish to show through this audience whether or not the right of free speech still exists in this country. I want to know also who it is that is challenging the right of free speech. (Applause.) I am wanting to demonstrate to you just what it is public men in this country have to face. A voice: Sit down then! Another: Some say "good old Algie! Professor Algie: Last night in Auckland it was impossible for three speakers to get a hearing, and I'want to see if it is possible for you to give me some hearing this evening. , I am here to" tell you A voice: A lot of lies! Professor Algie: I am here to tell you that the issue today is the issue as to whether we have State Socialism or not. : A voice: Three cheers for Labour. Professor Algie said that the members of the Labour Government had said that they were Socialists. They were now saying that they were not. Not so long ago the Hon. P. C. Webb said that the Labour Party stood where it had stood for the last thirty years— they were the same convinced advocates of Socialism. In Christchurch more recently, Mr. Webb had also said that Labour was clearing the decks for action and all legislation that would be passed by the Labour Government would have a Socialist background. In a book published in this country by Mr. J. A. Lee they would see that he came out into the light and. said this: "There is no alternative in this country to. Socialism." Mr. Lee added that; the people of New Zealand had more Socialism than any other democracy on earth. "More than that," said the speaker. "Mr. Lee says that Socialism must continue to build in New Zealand, or else New Zealand would lie in ruins." "Now let me approach the question of politics from this angle " Voices: What place are you standing for? Is that the freedom angle? "I would like to know what they are paying you." said an interjector. Professor Algie: There is one man who is very anxious to know what I am being paid. I am not ashamed of being paid it; I am proud of it, because it is the result of individual effort. (Applause.) A voice: How much is it? Another voice: Every man has his price! Professor Algie: I do not think the people of Wellington are thjr least bit interested in what I am paid. COST OF PROMISES. He went on to say that at every election each party came before the electors with promises and the cost of those promises that had been made from thine to time had increased at a rate that made people pause and wonder where they were going. An interjector: It does not touch your "kick"! Professor Algie: It touches me and you, if you have anything to touch! He said that some thirty years ago the total amount required to run the country from taxation was £6,000,000; today it was £36,000,000. There were only two sources of State taxation—■ the profits from private industry, and the salary, wages, and income of the people. Under the philosophy of State Socialism that was being steadily introduced, the intention was to do away with private industry and private enterprise. After a volley of Interjections from the back at this stage, the speaker paused, to remark that if his visit to Wellington did nothing else it showed what would happen to the right of free speech if Labour got back again. The promises made from time to time must be met out of the revenue of private industry or from the wages and salaries and other income of the people, said Professor Algie. Under Socialism the intention was to do away with private industry. In hisj book published last January, the; leader in Great Britain of the Labour Socialist Party, Major Attlee, said that under Socialism all land would have to be owned by the community and all the industries would have to be under the control of the State. Substituting State control for private enierprise meant that the revenue obtainable for taxation purposes was greatly diminished, because it was the exception and not the rule for State industry to run at a profit. It followed that the money available for social services by the State would be' correspondingly diminished and then what would happen to those services? MR. LEE'S BOOK. Mr" Lee in his book was faced with that same difficulty, Professor Algie continued, amid cries of dissent. According to Mr. Lee, under the new system that would prevail.. When there was State Socialism members of the unions would have to adopt a different philosophy. (Voices: Hear, hear.) "Wait until you hear the rest of it," advised the speaker. "Mr, Lee says that the members of the unions will have to get a different point of view. It is all very well for unionists to adopt obstructive tactics when working for private capital, but wEen we are working for the State we must work harder than we have done before. Under the new system of State control the trade unions will have to become the agents of the Government for seeing that their members work harder and better. "Those are statements in a book written by a man whose opinions count in the Labour world. If you see a#y real difference between that and the, Soviet system, you have discovered Something that has escaped te ITet t&ere are geogle yrho. §a£

it does not touch

that the issue today is not Socialism. I say, and you know, that it is the issue." (Cries of "Nonsense.") REACHING THE PUBLIC. Referring to Ministers' election tours, Professor Algie claimed that they knew the public mind was at last awake and realised that the issue .before the country was properly understood by everyone. The radio was controlled as completely as under any dictatorship overseas. (Dissent.) There were four ways of reaching the mind of a community. The first was through tlie public Press, and everyone knew from the speeches of Labour members that if they could do it they would seek to impose a censorship on the Press. A voice: Why not? Professor Algie said that the mark of a democratic country was a free Press. The second way to reach the community's mind was by means of radio, and they knew that under the present system the Minister in charge had as much power as any dictator. A voice: I'll issue a writ against you. Professor Algie: Well, so long as you issued it I would not have very much to fear. (Laughter.) Another voice: Good old Scrim. - Professor Algie: After all, in a country that is relatively free, you can't stop people from choosing their own company. (Prolonged laughter.) RIGHT OF FREE SPEECH. The other two ways of reaching the community's mind were through the films and public meetings, said Professor Algie, and he was sorry to say that there was a risk that the right of free speech at public meetings was being undermined. He did not think that some of those persons so persistently interjecting that night realised the harm they were doing to their own cause. To preserve democracy they must preserve inviolate those four methods of approach to the public, otherwise people's judgment on political issues could not be sound and valuable. The first step towards Socialism was for the Government to obtain control of the finance and currency of the country, said Professor Algie. Voices from the back of the hall: Hear, hear. Professor Algie: If you could realise the misery already caused in Europe because of that you would not say hear, hear. Professor Algie said that the very first Act that was passed by the Labour Government was an Act to take over control of currency of the Dominion. Mr. Lee in his book said that not only would it be necessary "'for us when we become the complete Socialist State to take over the Bank of New ZealandA voice: It is a Government bank now —what are you talking about? "But," continued Professor Algie, "he says, they will have to take over all the other banking systems as well. He goes on to say, and this is the sentence I want to emphasise. If we stop short of taking over all the banking systems of the Dominion we shall be Socialist in name only. "You have there presented to you the opinion on finance of a leading Socialist in this country. "The second step blaid down is that they have to take over all the industries of the country. In nearly every case where the State takes over industry it starts to run it at a loss. In the Industrial Efficiency Act we have quite enough authority already to take charge of industry and vest most of it in State control. (Several "'hear, hears.") If it could be shown that we are likely to benefit from it I would possibly say 'hear,- hear,' too, but experience has shown that State industries do not run at a profit when they have economic and political considerations mixed up together." Professor Algie went on to say that during the last three years the influence and authority of the court of law had been very seriously undermined. A voice: Tell us about the Arbitration Court. Professor Algie: I can tell you a lot about the Arbitration Court. It thinks only of lifting wages, and does not pay very much attention to the question of costs. FUNCTION OF COURTS. In some five or six Acts during the past few years particular functions that should have been left to the Law Courts to decide had been handed over to tribunals presided over by the Ministers, continued the speaker. That was exactly what Socialist books in England recommended. Also, the right of appeal from these tribunals to the ordinary Courts had been taken away, and instead the right of appeal to a Minister substituted. A voice: Are not Ministers representatives of the. people? vThere is one thing that is laid down by the Socialists at Home as being the proper thing to do, and in this case I am quoting from Sir Stafford Cripps," said the speaker. "He says: 'When we get into office one of the first things we shall do is to pass an Emergency Powers Act. That Act will permit us to carry our Socialistic programme into operation, and will also contain a provision to prevent what we are about to do from ever being reviewed by the Courts of the country.' That is the issue that is before us. The Courts are the last stronghold of constitutional freedom. (Applause.) "I very firmly believe," said Professor Algie, "that if you ever do adopt a complete socialistic system in this country—you may get it forced on you whether you want it or not. . . ." Voices: We want Labour. Professor Algie: I only wish that somebody would make it hard. (Laughter.) POLITICS AND BUSINESS. In his opinion the establishment of State Socialism would mean the disappearance of representative Government. . Events in some overseas countries had proved that. Representative Government and State control of industry could not Korfe band in hand.^

A voice: It suited the farmers.

Running a business on political considerations meant that profits disappeared. In a democracy values were fixed by the ordinary law of supply and demand plus competition. Under Socialism it was the State alone that fixed values, as was shown in the case of the guaranteed price for dairy produce. The Advisory Committee had recommended a price that included the cost of production, but the Minister of Marketing had reduced the price to a level that suited the policy of his Government.

Professor Algie: I am able to tell you it did not suit the farmers and because of that the Labour Government is going out. (Prolonged applause and dissent.)

In conclusion, Professor Algie appealed to the audience to keep in mind that the Dominion would shortly celer brate its centenary and to see that the freedom established by the pioneers was not sacrificed for Socialism.

The section at the back of the hall gave three cheers for Labour as Professor Algie resumed his seat, but the cheers were drowned by applause from the rest of the audience.

A vote of thanks to Professor Algie and of confidence in the National Party candidates was proposed by Mr. O. C. Mazengarb and seconded by Mr. J. W. Andrews, and carried by an overwhelming majority on a show of hands. Cheers were given -for Professor Algie and the Leader of the National Party (the Hon. A. Hamilton), and the singing of "For They are Jolly Good Fellows" and the National Anthem, iconeluded She meeting, __^> ~^'- ~