BUDGET DEBATE

Evening Star, Issue 22774, 8 October 1937, Page 8

BUDGET DEBATE

TO-DAY'S SITTING DF HOUSE MR CARR ON MONEY SYSTEM GRADUAL DECAY OF PRESENT METHODS [Per United Press Association.] WELLINGTON, October 8. The House met at 10.30 a_.m. The Hamilton Parsonage Site Amendment Bill (Mr Barrell) was passed. Three days’ leave of absence was granted Sir Apirana Ngata and two days to Mr Barclay. The Thames Valley Drainage Board Empowering Bill (Mr Coulter) Was introduced and read a first time. The debate on the Budget was continued by Mr Cobbe, whose speech had been interrupted by the adjournment last night. He stated that he found it difficult to understand the Prime Minister’s antipathy towards the private banks, which were most _ useful adjuncts to our present civilisation. Had it not been for them private business and farming would not be in the satisfactory condition they were in today. We had been told that th© private banks were not giving 100 per cent, service, but he would remind them that the banks must be satisfied with the security and honesty of wouldbe borrowers. The Opposition had no brief for the banks, hut what it was concerned about was the talk of a commandeer of the banks by_ the Government. He, personally, did not_ think that the Government would do it, but the loose talk about it could do nothing but harm. He also stated that the placing of the Reserve Bank of New Zealand under political control was ono thing that should have been avoided by the Government.

Mr Cobbe asked the Government’s intentions with regard to interest rates. Was it preparing the way to repudiate interest? Mr Carr said the real test of the Government and its policy would come if there was a fall in overseas prices. It would bo then that the Government would require to use public credit to maintain stability in the farmers’ income and the standard of living of the people. He attacked the raising of the exchange rate, which he classed as pure currency inflation. The Opposition had upbraided the Government for taking credit for increasing prices for our produce, but ho said it had been definitely proved that increased spending power induced increased production, and the Government took credit for increasing the spending power of the people. Tho Government, said Mr Carr, could see inevitable economic changes looming everywhere. The present monetary system was gradually disintegrating, whether Ave liked it or not, and the Government’s task was to lighten the blow and make as easy as possible the period of transition. _ In this manner it was making provision for future administration. He said he had been accused of Socialism, often bordering on Communism, but he would point out that Socialism was the principle of Christianity in practice, and was the only thing to exorcise the devil of Communism. Co-operation, he said, was another name for Socialism. Mr Bodkin: “ Bunk.”

Mr Carr: That is a typical interjection from the hon. member for Central Otago, wnose speeches are always permeated with splutterings and explosions. . Continuing, Mr Carr said the use of public credit was no new thing. It had been used by past Governments through tho private banks until our public credit was hopelessly mortgaged. For the Government to use public credit was to create credit instead of debit. It was production for use, and not for profit. Mr Carr continued by congratulating the Government on its fairness and impartiality in the broadcasting of Parliamentary debates, and also congratulated the commercial broadcasting service on its efficiency. Mr Bodkin said the charges made against Mr Scrimgeour recently in 1 N.Z. Truth’ should be investigated by tho Government, because the honour of a Civil, servant was the honour of the Government which employed him. Mr Bodkin contended that the Douglas Social Credit supporters in New Zealand had been misled by the Government, and at the next election the Labour Administration would find Douglas Credit partisans opposing Labour’s return. The Minister of Finance, he said, was the greatest tax gatherer in the history of the Dominion. He had his hand in every pocket, and heavily taxed the poor as well as other classes of the community. It was, in fact, people with small incomes who were making the greatest contribution towards the carrying out of the Government’s administration. The Government was creating a new poor in this country by heavy taxation on people who ‘were living on the income from small investments. He warned the Government not to be caught by a depression with a large amount of frozen assets, and not to tie up its liquid reserves in wildcat schemes. The House adjourned at 1 p.m.