SOCIALISM AND CAPITALISM.

Hokitika Guardian, 22 October 1936, Page 6

SOCIALISM AND CAPITALISM.

(To the Editor). ■Sir, —The cleavage between the socialist ami the capitalist points-of-view is becoming more and more evident. This is so, because capitalism to-dav faces a crisis. In some countries the crisis is being met by bloodshed, - oppression and terror. In others, the reactionary forces are content, rs yet, with' threats of economic sanctions. As ah example of such threats, the' recent remarks of Lord Elibank, president of the British" Empire' Chambers of Commerce C ngress. Lord Elibank, the capitalist representative of a self-governing nation, attempts to dictate to. another selfgoverning nation the nature and serpe of its economic legislation. He warns us, in effect, that unless we continue to tolerate the inefficiency and waste of uncoordinated unplanned private enterprise, “there is little hope, th t any more capital will come Horn the place from which most of it comes, namely,, the city of London.”*

When calamity threatens us, it- is a wise plan to face it squarely, and ask ourselves what is the worst form it may take.. If we do this, we shall frequently find that calamity is ' not so calamitous after all. Let us subpt this procedure in the present case.

With one exception, everything that could be accomplished in New Zealand with the aid of foreign capital could be accomplished equally, well by our unaided selves. Furthermore, by employing our . own resources, we should retain the profits for our. own use, instead of shipping them off to London for the enrichment of Lord Elibank and his friends. What is the exception ? New Zealand acquires abroad -those goods which it cannot produce as economically itself. These goods may be paid for immediately by exports, or they may be borrowed, and their repayment with interest, left Ro the future. Whenever possible the first alternative should be adopted. Under what circumstances is it permissible to adopt the second ? Obviously when we are unable to pay. cash, and when it is believed that the increase in national prosperity caused by. the importation of certain goods will, in the long run, be greater than the decre se resulting from the. attendant drain qf interest and principal payments to 1 foreign creditors.

';i §o t what is ■ the worst i-tha?t, .can; happen if. the city of London refuses credit? Simply this, that we may to wait a year or .so for cert in goods until we can pay cash. It is (thus evident that we have little to fear from Lord Elibaijk and his, co leagues.: The complete stoppage of all credit from London might, it is true, inconvenience us a little, because it--might act as a brake upon the development of certain of our resources which require for their exploitation equipment at present beyond our own capacity to economically produce. On the other hand we should avoid debt, and we might even find that we could do for. ourselves what hitherto we have thought could only be doneyby others-. We are confident, in any ease', that if matters came tq;. an; impasse, which is, improbable,,. v ;that tbps nation will be very ready to beayC.the small inconvenience as the price of our freedom to develop our national life in the way that we ourselves think best. Thanking you,

PUBLICITY COMMITTEE, Hokitika branch of the New Zealand Labour Party. ~