Restoring Prosperity

Manawatu Times, Volume LV, Issue 7017, 29 November 1932, Page 7

Restoring Prosperity

Present Government Bankrupt in Ideas

DECLARES MR 11. ATMORB To a crowded Empire Hall last ovoning, Mr. H. Atmore, M.P. for Nelson, declared that the present Government would not last tho four years to which hy special enactment it was desirous of extending its life. Public indignation, he added, was growing at a display of statesmanship that, instead of lifting the country out of the depression, whs making its plight worse. He spoke for over two hours and was listened to attentively. Mr. A. J. Graham presided.

The chairman commented on what he described as “tho masterly inactivity of those in power’’ to grapplo with the situation. Tho time had arrived' when Parliament should demand, irrespective of party, that the Government do something. The chairman also road an apology from the Mayor (Mr. A. E. Marisford), who stressed the point that what was needed was greater equality of sacrifice.. (Applause.) "I am firmly of opinion,’’ wrote Mr. Mansford, “that, tho economic position of this Dominion calls for immediato action. Whatever, scheme of action is put forward as ,*l. remedy must have as a foundation basis equality of Sacrifice. It is the inequality of sacrifice to-day that is undermining our whole social structure, and unless this feeling of unrest and uncertainty is speedily arrested the result must be disastrous.”

Unparalleled Poverty— Unparalleled Plenty Mr. Atmore said he was not approaching the situation from a party point of view. He had contested tan. elections, and had always Stood on the understanding that ho could observe matters from an independent viewpoint. It was because -of tho fact that there was unparalleled poverty amidst unparalleled plenty that ho had initiated his prosent campaign, and not in a spirit of bitterness. There was something radically wrong with the statesmanship of the world and the people of the Dominion had a right to bo indignant at the fact that there was poverty in the midst of plenty. The problem of production had been, solved, but not that of unemployment which was thwarting tho ambition of tho young, and it had to be remembered that the most valuable part- of— -a nation was tho welfare of its youth. How could jobs bo found with the present policy of progressive deflation? Dealing with gold, the speaker declared it had become a fetish. It was a' measuring rod that had been most unfair. New Zealand should get. away from the fetish and have a measuring rod that based the valuo of goods on a commodity prico index. Tho speaker declared that it was not Parliaments that ruled tho world today, but those who had control of tho currency. Why was it that a bank Could pay £l4 Cs 8d per cent., even on watered stock? It was because it had control of the currency. The policy was to depress the price of commodities in order to enhance tho value of the monetary unit.

The question of monetary reform should have been settled at Ottawa. Instead it had been shelved and ft great opportunity had been lost. Nevertheless, the economic depression could be lifted to-morrow by wise statesmanship throughout the world. The Governments were thinking in terms of old economics.

The only way back to the old prosperity was to increase consumption by increasing the purchasing power of tho people. Tho high exchange proposal was a child’s wny of tackling the problem. Instead of decreasing tho purchasing power of the people it should have been increased, so as to deal with the increased production. “All this foolish reduction in salaries and wages is not only unnecessary but positively harmful,’’ declared Mr. Atmore amidst applause. The Government thought it could help the farmer by decreasing his sales. It was like a doctor who Suggested bleeding as a cure for an anaemic patient. (Laughter.)

The speaker again declared his disgust at Ottawa not having settled the monetary question. It had been shifted on to the International Conference. How could it be settled there with ail the unfortunate feelings of national hatred that would bo evident? The speaker quoted from innumerable authorities to prove that the Government cf New Zealand was working on the wrong lines. The unemployed did not want unemployment—they wanted work, and in this young country there was any amount for them to do. To-day it was a mockery to pray: “Give us this day our daily bread,” when they were burning wheat in America.

In the district from wliicb the speaker came they were throwing sheepskins into the Buller River because the freight to Nelson was more than could be got for tbe skins, and yet thousands were going without sufficient clothing and footwear. Surely statesmanship was bankrupt when such a state of alfairs existed.

Mr. Atmore, touching on education, stated that there was not a statesman in New Zealand who had any zeal in. regard to education. Instead they were trying to make the children help balance the budget.

Mr. Atmoro declared himself against-' borrowing, as the Government cbuld issue its own notes just as easily as it cohid give the Bank of New Zealand a Treasury bill for a lump sum and the bank issue the notes. There existed the greatest opportunity a statesman ever wanted to put the position right, yet Mr, Forbes was still declaring the people had to prepare for conditions that would be worse. The speaker advocated utilising the people’s credit for the use of the peo-

pie, and the control of credit by a board which would keep the price level constant. Tho latter was not an experiment, but had been proved practical by Sweden. Instead of reducing salaries, the Government should raise them. Increased wages would allow tho people to buy the surplus of produce which, thinking in terms of the old economics, nations wero destroying in order to cope with overproduction. There was nothing wrong with Now Zealand except mismanagement, and it could lead the world as it had done in the past when Richard John Seddon and other giant 3 of Liberalism were in power.

“I predict that this Government cannot last four years. (Cheers and applause.) I predict,” repeated the speaker, “this Government cannot last, no matter what measures it passes to extend its life. (Renewed applause.) The public indignation will grow more and more.” The Prime Minister had stated that to reduce interest would bo repudiation, yet the Government had been repudiating in every way that the Lang Government of New South Wales had repudiated, with the exception that Mr. Lang had forced the banks to reduce the rates of interest —(applause)while the New Zealand Government had specially exempted the banks from a reduction.

The first act of tho Coalition Government had been tho abolition of the graduated land tax, which had made a difference of £16,000 annually to the Bank of New Zealand. To make up the deficiency, the Government had taxed tho girls in work. It was futile to try and find jobs for boys and girls when the policy of the Government was decreasing the avenues of employment. Mr. W. Thomson moved:— (1) That in the opinion of this

meeting, monetary reform is of outstanding importance and the immediate arrest of progressive deflation is a condition precedent to a restoration of national prosperity, and no other measures can function as efficient substitutes. (2) That this meeting draws tho attention of the Government to the grave menace to New Zealand and Empire shipping existing in tho subsidised American line which trades under a system of high subsidy rendering competition impossible, and calls on the Government " to' take the necessary step to protect our mercantile marine. Mr. G. Mills seconded the first mo tion and Mr. F. W. Hubbard the sea ond, bolh being carried unanimously.