WELLINGTON NEWS

Hokitika Guardian, 1 May 1931, Page 2

WELLINGTON NEWS

MISPLACED CONFIDENCE.

(Special Correspondent.)

WELLINGTON, April 27

It was in October last that Mr Lang was, with the Labour Party, voted into power by the electors of New, South Wales. The retiring Premier, Mr Bavin, was lully seized of tut stringency of the. economic conditions, and could offer the electors nothing sensational to cuie the depression, but suggested the humdrum virtues o. economy and thri.t. Mi' Bavin believed in the programme submitted to the Premiers’ conference in Melbourne as the only safe method of bringing about a recovery. Mr Lang, on tin other hand, was opopsed to the Nein.eyer programme and led the electors to believe that he possessed a magician’s wand for curing unemployment and dispersing the clouds of depression. The electors accepted Lang’s statements at their full value and believed that his programme was constructive while Bavin’s programme wa s weak.

And so Lang got the vote. The electors ul'e now disillusioned. Lang’s constructive progralnlne turns out to b destructive, for ill the short period of aife months he lias dragged down the, name of Australia and lias made New South Whiles the “awful example’’ to other countries. One of hits first, acts was to reinstate wages and continue the heavy expenditure which is unwar* ranted. Then he quarrelled with the Upper House and the Governor of the State because he would not consent to the appointment of Labour nominees. His attempt to abolish the U] per House was balked by the judgment of the Appeal Court. But these legislative posturings were nothing to worry over and no doubt suited the electors ol New South Wales. The fat was thrown into the fire when he defaulted on the interest payments to British bondholders.

The latter however did not suffer for the amount was paid by the Commonwealth Government, which was in the last responsible for tbe State debt. This default, which astounded the people, also set them thinking, for if he could default to British bondholders what was there to prevent him indulging in somewhat similar action within the State. The depositors in the Savings Bank naturally became alarmed, for being hard pressed for funds and the State of N.S.W. was practically bankrupt at tbe present moment. Mr Lang may have made raids on the Savings Bank and conscripted the money of depositors on the ground of National necessity. Such a course of action wouldn ot be impossible to a politician of Mr Laifg’s calibre. St) the default to the British bondholders lad tb ft “run” on the N.S.W, Savings Bank. The institution was sotind enough on Paper but its investments were mostly in the bonds of the State which lamp had rendered almost valueless, at ail events they could not be sold, or if sold the price realised must have been at a very great loss to the. institution. The assets of the Bank were , thus froz r en and there was no alternative but to close down, and thus cause the maximum of inconvenience and hardship to thousands of people. Lang’s anti-Neimeyer and so-called constructive policy has landed the State in serious difficulties which will take a long time to overcome. Now the majority of the electors believe in the policy advocated by Mr Lyons, who is on all-fours with the Neimever programme. We do not real ise in New Zeaalnd how very fortunate we are that we have not got .a Labour Government. • The Labour Party in Parliament has opposed every economy measure proposed by the Government, and pride themselves on the fact that they “stonewalled” the “cut” in salary and wages at an enormous cost for which the country has reecived no value,

The point to be borne in-mind is that the economy and retrenchment schemes of the Government are in accord with the proposals of Sir Otto Neimeyer. The conditions in New Zealand have shown the same dri't as those in Australia, but they are certain to cease drifting when the legislation of the emergency session becomes effective. The whole object appears to be to bring internal costs to hear some relationto world cosst and to balance the Budget. Labour has been opposed to this. In other words Labour in New Zealand has acted in the same way as Labour in Australia, and had the Labour Party here occupied the Treasury benches we would have drifted into the perilous position Australia is in now Depression cannot be cured by spending what we do not possess.