MONETARY REFORM

Evening Post, Volume CXXXVI, Issue 64, 13 September 1943, Page 7

MONETARY REFORM

DEMOCRATIC LABOUR

MR. J. A. LEE'S MEETING

The policy of the Democratic Labour Party was outlined by the party leader, Mr. J. A. Lee, to a crowded audience at St. James Theatre last evening. The Labour Government's policy of finance and administration was criticised by Mr. Lee, who urged a plan of currency and. credit reform.

At the conclusion a vote of thanks was accorded Mr. Lee and a motion passed wishing his party good luck on polling-day. Mr. Pat Connors presided. On the platform were the party candidates of the Wellington electorates.

Mr. Lee was enthusiastically greeted when taking the stage and on rising to speak. Cheers were given for him, and the audience sang "For He's a Jolly Good Fellow."

Years ago, he said, he had taken the same platform as many prominent Labour speakers, but he was the only one of that group who had not changed his view and could still deliver the same speech as he had done on that occasion. '

Judged from their advertisements the Labour Party seemed to be worrying about him a great deal. "They seem to have Lee on the brain," he said. It had been said also that while he .had possessed courage on the battlefield, he had no political courage, but he felt he could ask in turn whether some of the Labour leaders possessed either sort of courage. The Democratic Labour Party had either 52 or 53 candidates in the election fight, and if they had had another fortnight of campaigning they would have fielded the whole 80. Of the 50-odd, 34 or 35 had served either in the last war, this war, or in both wars.

RADIO FACILITIES

Before the election fight started he had written to the Prime Minister asking for radio facilities late in the campaign to reply to criticisms, but this had been refused. Yet, the other political parties had enjoyed the protection of the microphone to hurl criticism at him and his party—criticism which was backed by specially-arranged groups who applauded at prescribed and appropriate .times—five or six people gathered around the microphone applauding with a walking stick. Mr. Lee attacked the Government's policy of man-power, alleging that the Dominion's man-power had been disproportionately over-committed, a policy which had incidentally been slavishly supported by the Communist Party —whose disciples "wentyelping around helping Peter Fraser to do'his job." While he and others who had the interests of the nation at heart desired to see the defeat of Fascism, he did not sanction—and never would sanction —the nation's man-power being committed to the last fit man, to an extent which threatened the stability of the country.

MEN IN THE FORCES,

At the Christchurch East by-election he had advocated the return of some of our men, claiming, that we could not maintain two divisions overseas, but Mr. Doidge, National member, had said we in this country had no right to judge upon the disposition of our man-power; this was Mr. Churchill's job.

He challenged this view, and said if New Zealand could maintain one division of men fighting in the Pacific, it would be doing very well. If we had been more like Mr. Curtin in Australia, and had insisted upon viewing the man-power position in its proper perspective, the interests of the Dominion would have been better served.

A realistic overhaul of the manpower position was necessary. He favoured no conscription for overseas below 21 years of age, opportunity for the 18- and 19-year-olds to complete their industrial training, and no overseas service for the fathers of large families. .

CURRENCY CONTROL,

The foundation of the Democratic Labour Party was the complete control of currency and credit in the interests of human welfare, Mr. Lee went on. -He personally had pressed this policy while he was a member of the Labour Party, and wherever true radicals were to be found—whether Marx, Shaw, or the Dean of Canterbury—there would be found also a united front on this vital question. This was how the Labour Party policy had started, but where was that policy now? Mr. Fraser had never believed in it. Mr. Nash had favoured it, and had promised it, but he had been retreating for a long time, and lately had been "touching his hat to the squire instead of looking after the interests of the people of New Zealand." New Zealand was spending £120,000,000 on war and had called up 60,000 men to fight and produce for war. This production for destruction would cease when the war ended and the "soldiers would be out of a job overnight. He held that the Government could issue credit to deal with this position, but if Mr. Nash's policy of borrowing from the private trading banks was followed the people would be so heavily taxed, that they would be paying up to 19s 9d in the £ taxation to pay the debt incurred to the banks.

Everyone wanted the war to be won, and the Government could always find money to see that it was won; but when the war was over the banks, which could find unlimited money for guns, would suddenly stop making money, just when the returning soldier needed a home and the soldier's son required an education. Only then was it discovered that they did not have the money. The people were told it was impossible, but it was absurd to say that the mobilisation of the country's resources and the provision of ample money supplies were impossible for peacetime reconstruction.

REHABILITATION,

Labour's rehabilitation plan Mr. Lee called "Moohan-shine." It was a scheme of relief undertaken on money borrowed at a high rate df interest. After this war industries could be established to absorb the working people of the country, many of them soldiers who would be seeking a place in civilian life again. New Zealand was proportionately one of the wealthiest countries in the world in raw materials and unused power, and possessed tremendous potentialities as a manufacturing country. All that was needed was a sensible use of credit and a sound direction, of its resources and man-power.

INTEREST RATES,

He visualised a scheme of soldier settlement with money available, not at 4 1-8 per cent., but at 1-k per cent, or \\ per cent., or some rate close to that figure. The Labour Government had been in office since 1935, but had not yet reduced the rate of interest by so much as one-eighth per cent., despite its pre-1935 pledge, and despite the speaker's persistent advocacy of reduced interest rates when he was in the counsels of the Labour Party. His party stood for a complete transformation of the money system, a transformation which would ensure a cheaper rate of interest. A soldier settler should not have to work eight hours for the mortgagee before getting anything for himself.

Mr. Lee dealt with the close cooperation of" the National and Labour Parties on policy questions, denying a suggestion that he had an understanding with the National Party, and advocated family endowments and houses for the people.

The vote of thanks was moved by Mr. L. Frame and seconded by Mr. W. G. Bishop.