THE GOVERNMENT’S POLICY.

Manawatu Standard, Volume LII, Issue 305, 23 November 1932, Page 8

THE GOVERNMENT’S POLICY.

(To the Editor.) Sir,—Will you kindly grant me a little space in your paper to place before your readers some aspects of the Government policy (or lack of one) with regard to banking interests and the position of the primary producer. Mr Forbes has publicly stated that the banks have not yet approached the Government for protection, nor have they decided their attitude towards the question of exchange rate. Apparently, sir, we have the unique spectacle of a Coalition Government (both parties which have claimed that they alone are capable of governing the country) without one idea of how to help the primary producer and the country generally to weather the storm; and waiting for the .banks to dictate a policy for them/ The Government have from time to time set up commissions and boards comprised of economists and socalled successful business men. Yet despite the fact that whether their findings agree or disagree, the Government merely adopt portions which obviously will "not clash with banking interests. One can only come to the conclusion that the Government is determined to offer the people and the industries of this country ' upon the sacrificial altar of hanking interests. Their policy, they tell us, is to spread the burden of taxation evenly over the population, and yet with all our industries going bankrupt and the people employed in them as well, our unemployed counted by its thousands, we find, according to Press reports, that the banks are still able to pay a dividend of 10 per cent, and upwards. I suppose, sir, that one should comfort oneself with the thought that we have in this country at least one institution which is seemingly flourishing. If money can be borrowed in Britain at from 2i to 3i per cent, can any of your readers tell me why it is not possible .to have the same rate operating in New Zealand P As I understand things, money being recognised as the life blood of industry, the very fact of freer circulation and a cheaper rate of interest must necessarily, have a resuscitating effect on our languishing industries. Yet we are so over-ridden by customs and conventions that the average man will tell us that we must be very discreet in our statements and actions or we will drive money out of the country. Drive whose money out of the country ? People one comes into contact with all tell the same story that they haven’t any money, so how is it possible to drive away something you haven’t got? One recalls that at the last general election Coalition candidates asked for a free hand and made wonderful promises of wliat they would do if returned to Parliament. Yet instead of facing up to the economic facts of the position we find them discussing such questions as the dehorning of cattle. The one ray of light in an otherwise dark sky is' the move made by the rural Coalition M.P.’s who approached the Government leaders re the desperate nature of the primary producers’ plight. One can only, quote the late Mr Asquith who said, “Wait and see.” It seems to me that we are in want because we produce too much of what we want, whilst those employed in producing the first essentials of life “food” become bankrupt in the process. Meanwhile the Government say, “Produce, produce, produce.”—Yours, €tC "’ • E. O. BOND. Awaluiri.