VAULTING AMBITION.

Evening Star, Issue 23718, 28 October 1940, Page 4

VAULTING AMBITION.

Mr J. A. Lee wants to run New Zealand. Full of confidence, he would throw out tho present Labour Government and place himself at tho head of an administration that would take “ immediate control of credit and currency in tho interests of the people,” This is a phrase that may sound convincing to tho-tininstructed in financial problems, but in reality means very little. The present Government has marched along that financial road to a point that reaches the limit of the country's safety. Mr Lee was elected ns an enthusiastic member of the Labour Party, and his services and abilities were recognised by an appointment as an under-secretary that was almost equal to Cabinet rank. However, lie broke with tho Labour Party, lost his association with that body, and is now endeavouring to oust the Administration that lias conferred such far-reaching benefits on the workers. Many people consider, indeed, that it has gone too far in its legislative experiments, and that the country cannot maintain the strain that is being put upon its resources. Mr Loo wants to go further, and so he has founded the Democratic Labour Party, with branches in various parts of the Dominion. A conference representing the different districts is now proceeding in Wellington. Tho chairman of the provisional executive of the new party outlined its aims, and in the course of his remarks declared that the Labour Party had become a machine without a soul, and the presumption is that that loss is to he provided by the “ new order ” —unfortunate phrase in the circumstances —that Mr Leo and supporters desire to create. This development will be a blow to the workers, its severity depending upon the support the new party receives in tho country. Returned at two successive elections with' a strong and compact following, tho Labour Government was enabled to pursue its socialistic policy without hindrance. It defied the assaults of the Opposition, and had reason to look forward with confidence to a further lease of. office. Now, as a result of the disruptive acts of Mr Lee, the position will he profoundly changed if the new party gains a substantial following, for the workers, losing that solidarity which is the foundation of their success at the polls, will be divided into two warring factions. Mr Lee has said that successive promises had been given to the Labour Party in caucus that it would fulfil its pledge to take complete control of the currency and credit of New Zealand, but that had never been done. It may be "pointed out that under its powers the Government has liberty to proceed in that direction to a marked degree, and the policy it is now pursuing is based on expediency' arising from the knowledge and experience gained by its possession of the Treasury benches. In a discussion in tho House of Representatives Mr Nordmcyer, who is credited with advanced views ou finance, said the Government would use Reserve Bank credit further for housing and other services as the necessity arose, but it had always to be borne in mind that no matter bow much anyone might wish to use those credit facilities they could not without disaster ho extended beyond the point that goods and services wore available. Remarking that we had not reached that point yet. the member for Oamaru added that Mr Lee had emphasised that there must inevitably bo a debt remaining after the war, but he must concede that whatever system of finance was adopted, even to the extent of using tho Reserve Bank to find all the country’s domestic requirements, that was not going to pay for what was needed overseas. This was an argument with which the Democratic leader agreed, and exploded his arguments about the Dominion’s ability to cease borrowing on the London market. Mr Leo lias been carried away by plausible and unsound monetary ideas which he would bo quite unable to put into practice if ho became Finance Minister. The simple truth is' that no monetary system could enable more to be consumed than was produced. If money were to increase and goods and services were, not to do so as well, then inflation, followed by disaster, would bo inevitable. What is to be deplored is that Mr Lee should initiate this campaign against tho Government at the present moment when the Empire is fighting for its Very existence. If tho leader of tho new party wanted to demonstrate his desire for the good of the people he should follow tho example of the Opposition leaders and give all his strength to the Government’s war effort. The course he has adopted, with its disturbing effects, will not commend, itself to tho good judgment of the people as a whole. Service before self would be much more to the point.