LYTTELTON BY-ELECTION

Evening Star, Issue 21505, 1 September 1933, Page 3

LYTTELTON BY-ELECTION

MINISTER OF LANDS ENTERS LISTS DEFENCE OF HIGH EXCHANGE [Per United Press Association.) CHRISTCHURCH, August 31. The Minister of Lands (Hon. E. A. Ransom) entered the Lyttelton by-elec-tion campaign by delivering a speech in support of the Coalition Government and the Coalition candidate to-night. He spoke in Lyttelton, a Labour stronghold, but was given an excellent hearing. The crowd was good-hum-oured, and those members of the audience who did interject occasionally found the Minister rather more than their match. At the conclusion of the meeting a vote of thanks to Mr Ransom was carried with acclamation. Mr Ransom discussed the causes of the country’s financial difficulties and the measures taken by the Government to meet the situation. The immediate cause of the country’s financial ills, he said, was the loss of national income through the decline in the prices of primary produce. Taking the 1928 prices as a basis, the loss up to the end of 1932 was £67,000,000, made up as follows: 1929 ... ... ... £2,400,000 1930 13,700,000 1931 24,000,000 1932 27,200,000 But notwithstanding the fall in prices, the value of our exports was beginning to improve as the result of increased production. During the year ended June, 1933, butter prices declined 13 per cent., cheese 11 per cent., lamb 9 per cent., and mutton 5 per cent., but the value of the dominion’s exports increased by £2,800,000. By this increased production the restoration of prosperity was assured as soon as prices recovered. The prospects of the wool industry were also very bright. There had been an important rise in prices, and stocks were much lower than for some time. The depression developed in 1929-30, and since then, continued the Minister, the economies and adjustments had been as f0110w1930, £260,000; 1931, £1,360,000; 1932, £4,320,000: 1933, £3,550,000; a total of £9,490,000. As cheap money was regarded by all economists as an essential clement towards recovery, the Government had set out on a campaign to bring down all interest rates. The reductions in the interest on the public debt had secured a net gain to the Budget of £560,000. Interest on mortgages and rents under leases had been reduced by 20 per cent, with a minimum rate of 5 per cent., and by arrangement with the banks the overdraft rates had been reduced from 7 per cent, to 5 per cent. The exchange rate had been raised from the 10 per cent, fixed by tho banks to 25 per cent, at the instigation of the Government. The dominion, as a primary producing country, was in a very serious position during the closing months of the last financial year, and some action was necessary to prevent the disorganisation and disruption of the primary industries. The Government _ took counsel with three of the dominion’s ablest economists, whoso advice was that the raising of the exchange was the only safe course to follow. The Prime Minister lield the opinion that tho exchange was a matter for the banks. Mr Forbes was not a man to change bis attitude readily, but after examining the position from all angles he agreed with the Cabinet that a rise in the exchange rate was the right course in tho circumstances. The value of the higher exchange policy to the primary producer for tho past seven months was £3,200,000 on a 15 per cent, basis and £5.280,000 on a 25 per cent, basis. The Labour Party’s declared policy of guaranteed prices would involve making provision for £20,000.000 annually till prices recovered. This approximated to tlio cost of the Great War. Contrary to tho arguments of the opponents of the high exchange the cost of living had not increased. Since tho exchange was raised tho actual decrease in tho cost of living was 11 per cent. Mr Ransom declared that Mr Howard’s statement that the Labour Party was never invited to join the Coalition Party was a mere juggling with words. Tho Labour Party was invited by the Prime Minister through its leader and by other representatives on the interparty committee to join a National Government. After long and numerous sittings of the committee, no progress was made, and the Prime Minister announced that he had decided cither to form a National Government from all parties in the House or dissolve Parliament, and appeal to the country. Mr _ Holland informed the Prime Minister that his party would not join a National Government. Mr Contes asked for time to consider Ihe question. and after throe days announced that he was willing to ioin a National Government during the period of the country's crisis. Mr Holland again said that Ill's party was unwilling to join. As it was impossible to form a National Government of all parties, negotiations were entered into by the United and +be Reform parties to form a Coalition Government. MEETING BOYCOTTED CHRISTCHURCH. August 31. Mr Hills; the Independent Labour candidate, addressed a meeting at Lyttelton to-night, the only persons in the hall being two women, four men. a sergeant and three constables, and four newspaper reporters. After waiting for a few minutes the women departed. but others arrived to bring tlie. total number of the general public, to fifteen. It bad been freely stated in Lyttelton this afternoon that Mr Hills’s meeting had been declared “ black." and would not be attended by Labour Party supporters. It is also alleged that the hall was picketed. Mr Hills made a vigorous attack on the tactics which he said the Labour Party was pursuing. He said he was surprised and disgusted that the Labour Party should have adopted such an unsportsmanlike attitude.