MONEY TROUBLES

Evening Post, Volume CXXVII, Issue 75, 30 March 1939, Page 6

MONEY TROUBLES

EFFECT OF LABOUR'S POLICY

"CRITICAL POSITION"

MR. COBBE'S CHARGE

(Special to the "Evening Post.")

PALMERSTON N., This Day.

"In spite of New Zealand's many natural advantages and also of the fact that we have had three1-unusually prosperous years, we are today facing a more disturbing and critical economic position than any previously experienced by any living person in New Zealand," said the Hon. J. G. Cobbe, when addressing electors at Rongotea last evening. "One has only to look at the figures bearing upon the present position of Dominion affairs to realise what the first instalment of Socialistic government has done 'for New Zealand," he added.

"The Public Debt has increased by £5,568,092 during the past financial year. The Budget states it has been reduced by £4,381,908, but that unique •reduction' has been created by transferring State securities to certain Government Departments.. We have to provide £31,715,000 by direct taxation. Public works will cost an additional £20,719,700, of which sum upwards of £14,250,000 is to be borrowed in New Zealand. The muchvaunted Social Security scheme will cost ah enormous sum. The English actuary estimates it will cost upwards of £20,000,000 annually in five years. The hospital rate, most of which is paid by the country districts, is certain to be greatly increased in a short time. The new Minister of Labour recently stated that about £18,000,000 will be required for buildings. New Zealand has also to face a loan of upwards of £ 17,000,000 which falls due in London within a year This, of course, will have to be renewed, but owing to the present discredited state of New Zealand's financial affairs and foolish statements about the abolition of interest, the renewal will probably be a costly and troublesome business. STERLING EXCHANGE. "A regrettable and alarming feature of the Dominion's public affairs is the rapid and unprecedented downward movement of our sterling ex* change, which is the money held in London by the Reserve Bank to meet interest and other commitments owing by the country." The National Party, he said, accepted no responsibility for the financial troubles existing today. It left the finances of the country in a sound state. The Reserve Bank's holding of sterling exchange was upwards of £20,000,000 and trade was improving rapidly when the present Government took office. The National Party had not been very long in Opposition until it became its duty to point out the dangerous road along, which the Socialist Government was travelling, but it was only jeered at and called pessimist. In Spite of the warnings the Government went on spending its way to "prosperity," ignoring the lessons of history and sneering at the advice of those who saw the breakers ahead.

"Fortunately for the National Party, we have not been called upon to clean up the mess in which the country finds itself today," Mr. Cobbe added. "Personally I think the people who are responsible for the trouble should themselves clean it up, but at the same time it is the duty of the Opposition, as far as possible with its limited number, to do its part to prevent irreparable harm from being inflicted upon the country. It is our duty to acquaint the country with the dangerous position existing today as the result of Government ■•, mismanagement. It is also our duty to warn the Government that there is a limit to what the freedom-loving people of New Zealand will stand; to caution our rulers against the imposition of ruinous taxation or unreasonable restrictions by Order in Council, upon the liberty of honest, hard-working people to whose labour and enterprise we owe our former prosperity."