A BLACK YEAR

Evening Star, Issue 20988, 30 December 1931, Page 2

A BLACK YEAR

1931 World-wide unemployment, reflected in a peak number of 51,000 unemployed in New Zealand; a year’s moratorium for war debts and reparations arranged by President Hoover; Britain’s departing from the gold standard; and the formation of National Governments in Britain and New Zealand have been the chief events of the year. On Juno 22, following a visit to London by tho German Chancellor and Foreign Minister, at which the matter was discussed, President Hoover startled tho world with a proposal for a year’s postponement of all war debts and reparations, both principal and interest. Tho proposal was welcomed by the British and Gorman Governments, Germany being at tho moment on tho brink of bankruptcy. It was estimated that the suspension of all war debt payments would mean a net loss to Britain of eleven millions, to Franco of twenty millions, Italy two millions, and tho United States forty-eight millions. Germany would bo relieved to the extent of eighty-one million pounds. Mr Hoover’s offer caused a rise on most of the Stock Exchanges of tho world. Owing to French objections, its ratification was delayed too long, however, to give it the largest benefits for Germany. The immediate loss to Britain, joined with needs for supplementary expenditure, upset Mr Snowden’s plans for balancing this year’s Budget, and the financial position during August was the occasion of anxious conferences between a committee of tho Cabinet and Conservative and Liberal leaders. Mr Snowden and Mr Bamsay MacDonald had to admit the plea, urged by the other parties, that a reduction of dole benefits was essential to tho improvement of the position. A majority of the Cabinet refused to agree, and on August 24 it was announced that Mr MacDonald, accompanied by Mr Snowden and Mr Thomas, had left his party to become loader of an emergency National Government, including Conservatives and Liberals. Only a handful of the Labour Party followed Mr MacDonald, the others forming the Oppoaition under Mr Henderson. On September 20 tho British National Government decided temporarily to suspend the gold standard. Mr Snowden, Chancellor of the Exchequer, explained that the stop was necessitated by an abnormal pressure on the exchange. It was not internal troubles, but the troubles of other countries, which rendered the gold standard impossible, sales of sterling being predominantly on foreign account. On October 27, after a three weeks’ campaign, elections were held to give a mandate to the National Government, which was returned by overwhelming majorities. Mr Henderson and most of the other Labour leaders lost their seats, and the state of parties was given as follows: —Conservatives 470, National Labour 13, National Liberals Go, National Independents 5, Labour 51, Liberals 7, Independents 4. Plans for the self-government of India have been the subject of discussion* throughout the year. On March 5 it was announced that conversations between the Viceroy (Lord Irwin) and Mr Gandhi had caused tho calling off of the non-resistanco campaign in India, following the holding of tho Hound Table Conference in London, which laid down general principles for the development of all India, including the native States, under a Federal scheme of self-government,. The settlement was confirmed a little later by tho Indian National Congress, and it was arranged that tho Swaraj Party should be represented at a further Round Table Conference to bo opened in London in September. That conference again, owing to tho differences between Indian sects and classes, did not get beyond general principles, but was held, to bo justified by its moral effect. Depression, caused by reduced prices for exports, was not the sole' misfortune suffered by New Zealand. On February 3 an earthquake destroyed the business centres of tho towns of Napier and Hastings, and did heavy damage at Wairoa, Waipukurau, Waipawa, and other towns of Hawke’s Bay. Two hundred and sixty persons were killed and 537 admitted to hospital. A special session, which began on March 11, was called in view of the financial depression requiring special economies for the balancing of the Budget. Finance Acts were passed providing for a 10 per cent, cut in the wages of public servants and other retrenchments, and empowering the Arbitration Court to revise awards during the period of their currency. Co-operation of the Reform and United Parties enabled this to be done, and tho Labour Party’* strong resistance to the main Finance Act, taking form in a boycott of record length, was responsible for the introduction of tho Closure, limited to the sitting Parliament. The device, howSpecial legislation was passed arising out of the Hawke’s Bay earthquake and putting tho railways under a non•posn XjSuubJk Ajoa A'juo sb.w ‘joao political board of directors. On April 28 Mr Forbes, moved by the difficulties of the economic position making need for a strong Government, issued an appeal to members of all opinions to form a National Party, to elect a National Government to deal with problems. Tho proposal was rejected by Mr Coates. On Juno 1 the Arbitration Court promulgated'its general order reducing practically all award wages by one-tenth. The Budget brought down during tho session proposed heavy increases of both direct and indirect taxation. On August 22 an All-party Committee was set up on Mr Coates’s initiative to consider the economic position. On September 18, as a result of evidence of financial difficulties placed before the committee, Mr Forbes announced that an agreement had been reached for tho United and Reform Parties to combine in a Coalition Government.. . On . September 21 .the Forbes-Coatcs emergency Coalition Government of ten members was formed,

aiul by the elections held on December it was confirmed in office with a strong majority, the ranks of Labour being increased from 20 to -4. The worst force of the depression was felt earlier by Australia, than by New .Zealand. At the beginning of the year the two plans for meeting it were a proposal for “ controlled ” inflation sponsored by Mr Theodore and default, at least temporary, in the payment of overseas interest, favoured by Mr Lang. New South Wales did default in the payment of interest, which was paid by the Commonwealth Government. On April 23 the Government Savings Bank of New South Wales had to cease payments owing to loss of confidence causing undue runs upon it, and its liabilities were taken over by the Commonwealth Bank. On May 23 the experts committee appointed by the Loan Council to inquire into Australia’s financial and economic problems made drastic recommendations, as follows:—(1) A cut of 20 per cent, in all adjustable Government expenditure as compared with 1929-30; (2) a reduction of 22* per cent, in the internal interest burden through a huge conversion operation ; (3) a reduction in bank interest rates, including those of trading hanks and savings banks; (4) increased Commonwealth taxation to the extent of about 7* millions; (5) some measure for the reduction of interest on private mortgages. This programme was agreed to, except by Mr Lang, who stipulated that unless the ‘‘ voluntary ” loan conversion was entirely successful ho would not undertake to cut public expenditure or reduce wages. The object of the plan was to avoid the danger of default and a complete stoppage of credit. On July 30, as his method of cutting public salaries, Mr Lang introduced a Bill to reduce them all to a maximum of £SOO a year. This was rejected by the Legislative Council and a compromise agreed on. The conversion plan was successfully carried out. A split in the Federal Labour Tarty caused elections to be held on December 19, in which the Seulliu Government was defeated and Mr Theodore lost his seat, the return of parties being approximately as follows: —Sculiin Labour 13. Lang-plan Labour 6, United Australia (Mr Lyons’s party) 38, United Country (Dr Earle Page’s party) 16. 'independent 2. On April 15 King Alfonso of Spain, prompted by the results of the municipal elections, which were a triumph for Republicans, departed, without formally abdicating, to make room for a provisional Government bent on a Republic. ■ The Republic has since been established. On September 17, following a state of tension with the Chinese, Japanese troops bombarded, and occupied the town of Mukden, in Manchuria, and the League of Nations is still .striving to reconcile differences. Only a few of the flying events of the year can be recapitulated. On January 8 Guy Menzies, an Australian, descended at Mari Hari, fifty miles south of Hokitika, after flying the Tasman in the Southern Cross Junior, in which Kingsford Smith had flown from England to Australia. C. W. A. Scott, a British airman, broke two records by flying from Lympne to Australia in 9 days 3 hours 40 minutes, and from Wyndham, North-west Australia, to Lympne (arrived Juno 6) in 10 days 23 hours. On August 6 J. A. Mollison (Australian) arrived at Croydon from Wyndham in 8 days 21 hours 15 minutes, beating Scott’s record. In November Harold (“ Bert ”) Hinkler crossed the South Atlantic from Brazil to British Gambia, in Africa. First Flight-lieutenant Bootbman, in the Schneider Cup competition,- broke the record for seaplanes with a speed of 340 miles an hour, apd Flight-lieutenant Stainforth reached speeds of 401 and 415 miles.

On Juno 14 the French excursion steamer St. Phibort foundered near St. Nazaire with loss of 400 excursionists. At the end of August sections of tho Grand Canal at Nanking, China, collapsed after a typhoon, with 300,000 deaths. On September 3 it was reported that one million people were estimated to have been drowned through the bursting of the banks of the Hoang-ho. On September 12 a disastrous hurricane, followed by a tidal wave, destroyed most of the town of Belize (British Honduras), leaving 1,200 dead and hundreds of injured.

THE YEAR'S DEATH LIST

The Princess Royal died early in the year. Survivors of the Great War who passed away included Marshal Joffrc, General Sir John Moiiash, .commander of the Australian Army Corps in France, and Admiral Von Capellc, the German Naval Secretary who followed Von Tirpitz. Among the statesmen who have died were Mr “ Tim ’ Healy, ex-Governor-General of the Irish Free State, Sir L. Worthington-Evans, exMinistor of War, Mr Vernon Hartshorn, Lord Privy Seal, Dr Mueller, ex-Chancellor of Germany, Sir Charles Lucas, ex-head of the Dominions Department, Mr Falliercs, cx-Prcsident of France, and Signor Salandra, who was Italy’s war Premier. Artists and authors of the obituary list include Miss Katherine Tynan, “ Lucas Malct,” Mr Arnold Bennett, and Mr Frank Harris (writers), Dame Nellie Melba (singer), Madame Pavlova (dancer), Eugene Ysaye (violinist), Miss Nellie -tewari (Australian actress), Sir William Open Mr Maurice Grciffenhagen, and Mr T. C. Gotch (painters), and Sir Bertram Mackennal (sculptor). Other deaths of the year were those of Thomas Alva Edison (the great inventor, also described as “ the most loved American since Abraham Lincoln”), Sir Charles Parsons (inventor), Sir Thomas Lipton, Lord Stamfordham (the King’s private secretary), Sir Harry IteicheV and Dr Starr Jordan (educationists), and Mr A. J. Cook (trades union leader). The New Zealand death list includes Mrs R. J. Seddon, Lady Stout, Mr T. Shader Weston (president 6f the Employers’ Federation), Dr W. J. Anderson (cx-Director of Education), Mr R. E. Hayes (Financial Adviser to the Treasury), Mr J. A. Frostict (Christchurch), Mr A. W. Hall, M.P., Mr T. N. Brodrick (ex-Dndor Secretary for Lands) Mr W- Fouhy (ex-Superinten-

dent of Police), Mr W, Menzies Gibb (artist), Mr Elsdon Best (ethnologist), Mr Edward Tregcar (first Secretary of the Labour Department), Sir .John Luke, and the Hon. William Earnshaw. Specially associaied with this city and province wore cx-Chief Detective Herbert, Mr F. 2. Moore, Mr Henry Maxwell, Mr W. G. Hay, Mr 11. Slater, Mr Roderick Mackenzie, Rer. D. Dutton, Dr Gordon Macdonald, Mr Alfred E. Eckhold, Mr G. W. C. Macdonald, Archdeacon Woodthorpe, Mr J. S. Algie (Balclutha), Mr Edward Knowstubb (Port Chalmers), Mr George Hutchinson Carey (Port Chalmers), Mr Alexander Scott, Mr Thomai John Thomson (St. Leonards), .Mr W. F. Sligo, and the Rev. R. R. M. Sutherland.