Opera House Packed

Manawatu Times, Volume LVI, Issue 7069, 31 January 1933, Page 8

Opera House Packed

Mr Nash Will Support Government Audience in Critical Mood A decided opposition to the raising of the exchange rate, a request to Mr. J. A. Nash, M.P. that he should vote against the legislation at present before the House, and Mi. ash implied intention not to do so, were the three highlights of the public meeting held last evening under the auspices of the Palmerston North Chamber of Commerce, which packed the Opera House to overflowing. Every one of the available 12UU seats was taken long before the scheduled hour for the meeting and hundreds filled the aisles and exits. Mr. M. H. Oram, President of the Chamber, was in the chair and associated with him as speakers were Messrs. F. J. Nathan, A. J. Graham, J. Hodgens, and J. A. Nash, M.P

Mr. Oram said the largeness of the meeting evidenced the tremendous interest being taken in the question of exchange at the present time.- The depression was one which had at least three unusual features —unusual as regards its nature, intensity and cause; Depressions had occurred in the past as a result of the fall of commodity prices, but the intensity of the pre'sent depression was unparalleled in the last century. There was the contradiction of people starving in the midst of plenty. The depression at present was a man-made slump —(Hear, hear and applause)—and in that respect it differed from previous depressions. If man had made it, then surely with sagacity it could be corrected if only the Dominion lent its determination. The main question seemed to be whether there was a possibility of a rise in prices? If so, the rise in the exchange rate might be justified; but whether warranted or not was for each nation to decide for itself. There was a general world-wide opinion that commodity prices should bo raised, but what was the position of the Dominion? New Zealand was an exporting country and depended for its national wealth on the money that came into the Dominion. At this stage Mr. Oram was subject to the impatienco of the audience and demands for facts. Mr. Oram: I am going to give you facts.

A 'Voice: That’s why we want you to sit down! (Laughter.) Mr. Oram resumed amidst much interruption, and pointed out that Aus-; tralia had raised exchange, thus, placing herself as a serious competitor to New Zealand. When exchange was raised the nominal number of pounds in circulation was increased. That extra money, through the primary producer, seeped into every channel of industry in the country —it enhanced tnc value of business. The disadvantage, however, was that it hit the importer, and So the cost of living, while it. also increased the amount of tho National debt and overseas charges. If exchange could be used as a qmrt of a comprehensive plan of adjustments, the raising of it would be a justifiable expedient. If one did not like the exchange, then one must come forward with an alternative plan. Voices: We’ve got it.

Mr. Oram: Don’t condemn exchange •unless you have something better to put in its place. Voices: We have—guaranteed prices. Mr. Oram: I didn’t come here for my own pleasure, and I thank those who have listened to mo patiently.

The Manner in Which It was Done

“I want it to be very definitely understood where I stand on this question of high exchange,” ’stated Mr. F. J. Nathan, the next speaker. "I told you very plainly that my view was that an increase of our exchange, as it was last week, was all for the benefit of this country, and I was definitely in favour of it. ” Where I disagree with those in authority is in the incidence of the increase and the manner in which it was done—done in such a manner as to disturb the whole business community.” In Australia the exchange was increased from time to time until it reached a figure exceeding 30 per cent. It now stood at 25 per cent., and had New Zealand followed this exchange movement step by step with Australia, it would havo been of very great benefit to this Dominion. But what had happened was this; it affected such a number of retailers. Many of them bought their goods at 60 and 00 days. The goods had arrived in their stores, their costs had been made up, includjing their profit; a great proportion of the goods had been sold, but were not yet paid for. Being bought at 90 days these bills would not be due until next „ month, and the profit anticipated on the sale of these goods would now turn in many instances into a loss.. That a rise in exchange was needful, he definitely agreed with, the reason being the price of our primary products and the dreadful position the primary producer found himself in. It was utterly impossible for him to carry on his business as a producer either in butter, cheese, wool or meat at the present world prices.

Will Not Teel Effects

"You will be told that this will mean on increase in the cost of living, but to such a small extent that I do not believe any one of you will recognise how much the cost has increased, ’ added Mr. Nathan. Cries of “Nonsense!”

Mr. Nathan was also subject to considerable interruption and was told by certain members of'the audience they didn’t want to hear about Australia. Mr. Nathan said that the only reference to the actual working of a high exchange that could be made was by giving the experience of Australia, and if the audience didn’t want to consider seriously the question of the raising of exchange and its effects, they, were an exceedingly foolish people. The interjectors sobered up a little, and Mr. Nathan referred again to Australia, where they had been working on as exchange §i big £>£ Ms3®

Public Can’t Afford More

Surprise Motion

[for some time past. It was a long time since things generally had been so good as they were in Australia today. All knew how bad they were thero a short time ago, but thero was an official statement now that they hoped to finish up their financial year with a surplu’s of five millions. Their income through their Customs had, in spite of what ono heard was going to happen in this country, definitely increased. Their exports had increased. A Voice: But we are not in Australia! Mr. Nathan: And Australia might say:-“Thank God you’re not!’’ (Loud laughter.) Mr. Nathan Wonders One wondered why the exchange was not done eighteen months ago, or even last August, so that the exports for the whole of this season would have benefited. Had New Zealand gone step by step with Australia, it would have been, in his opinion, to the benefit of this Dominion. New Zealand had had a period of deflation —result: facing a deficit of 41 millions. Australia with a high exchange had every prospect of a surplus of five millions. “Can there be any reason to doubt that we would benefit in the same way?’’ concluded the speaker. “•Came as a Bombshell’’ “The action of tho Government in interfering with banking practice in raising the rate of exchange and subsidising farmers at the expense of • the rest of the community, has come,’’ said Mr. Graham, “as a bombshell to the business portion of New Zealand, and undoubtedly must be far-reaching in its results.” Party government, he continued, seemed impotent to deal with the. problems of the Dominion, and it appeared that non-party government would be better for the country.

Cabinet’s action in regard to the exchange, Mr. Graham continued, had been a most surprising one; in November of last year the Prime Minister had declared that the matter of exchange was one for the banks.

The position in Australia was entirely different from that in New Zealand; in the Commonwealth there were many manufacturing industries and for years there had been adverse trade balances, whereas in New Zealand we had few manufacturing industries and enjoyed favourable trade balances. With the increased exchange in New Zealand, cither the trader importing goods, or the person to whom he sold them, would have to pay the difference. If working on a 15 per cent, pegged exchange, the business man had difficulty in disposing of his goods, how much more difficult would it bo with the rate at 25 per cent.?

He did not think that the public could afford to' buy at higher prices, and he foresaw an increase in unemployment. At the present time the unemployed were barely able to eke out an existence, so how could they make ends meet with a rise in tho cost of living? The action of the Government had accentuated the burden of those least able to bear it. Increased taxation would have to come and in its train further hardship and suffering. “I think,” concluded Mr. Graham, “I am safe in saying that I voice the feeling of the business community of this city when I say that the action of the Government is wrong in principle and in the end must have a disturbing effect on the Dominion as a whole. I can only urge you to face the future with courage—face it with the spirit of the great Motherland.” Mr. Nash Reminded Mr. J. Ilodgens was received with applause and cheers. Ho said he was speaking on behalf of the men and women who had been making sacrifices since early in 1929. “I oould not be in better company than taking as my inspiration tho speech delivered by Mr. J. A. Nash, M.P., at Ashhurst. (Boars of laughter.) Mr. Nash had spoken against tho raising of the rate of exchange, said Mr. Hodgens, and had pointed out the dire results of such . a move. "I am in hearty agreement with practically the whole of that speech of Mr. Nash’s, and I hope in the following weeks he w'ill exercise his powers in furtherance of those utterances.” (Aplause and laughter.) Tin’s matter is now so serious that a man has got to vote according to the dictates of his heart and not at the crack of the party whip. (Applause.) I feel that when the division bells arc ringing the member for Palmerston will be found voting with the Labour Party. (Applause and laughter.) I can see that, because of the splendid meeting organised tonight by the business interests,” added Mr. Hodgens, who proceeded to affirm the slogan of Labour that wages must be increased. Voices: What about exchange? Another: He doesn’t understand it. Mr. Hodgens: This increasing of exchange will add to unemployment, as Mr. Nash and I are agreed. The speaker declared that the Government had not placed ono item on the statute book since the last election that had not made the position of New Zealand worse, and ho felt satisfied that the to .come wealg g£j& fegj

sorry ones until the legislators remembered the position of tho worker's. New Zealand had reached the position that one of threo things had to happen: Either there had to bp a capital levy, repudiation, or the issuing of credits commensurate 'with tho amount of commodities produced. It was possible to get legislation whereby tho standard of living could bo raised in New Zealand and wages improved. The problem was here in the Dominion, so why bother with something that concerned tho other side of the world? (Applause.) He wondered if a Cromwell would arise in New Zealand to lead the people, or a Guy Fawkes. (Laughter.) He thought tho people of New Zealand should receivo at least the same consideration as thoso who controlled money.

Mr. Hodgens then gave notice of the following motion: — “That this meeting of citizens of Palmerston North calls upon Mr. J. A. Nash, M.P., as senior Government whip, to use every effort in his power to bring about the repeal of the Order-in-Council increasing the rate of exchange. We commend him for his analysis of the effect of such a measure as outlined in the speech he delivered at the Ashhurst Flower Show, and place on record our condemnation and loss of confidence in the Government for its gross breach of faith with the electors of the Dominion.” “Mr. Hodgens’ Little Joke.”

“I thought we had come to-night to discuss a certain question,” said Mr. J. A. Nash, M.P., “but we find that Mr. Hodgens, as usual, has to have his little joke. There can be no question that he never loses an opportunity to gain a disciple for the Labour Party, and I want to assure Mr. Hodgens that 1 will convey to his leader, Mr. H. E. Holland, tho information that he used his best endeavours at this big meeting to-night.” The mater of the exchange, Mr. Nash continued, was ono that should bo approached from a national and not a local viewpoint.

“I have previously expressed my own personal views, in regard to the raising of tho exchange. I felt that it meant a further depletion of tho value of the pound, that it would add to unemployment and that it would raise the cost of living. However, I will refer to that later. Dependence on the Farmer. “I think we can all agree when 1 say that almost our very existence depends upon the primary products of our country. If the farmer is prosperous, then the business man is prosperous also ; if the farmer goes down, then as sure as night follows day the business man goes with him. During the past six months , the position of c-ur primary products has become infinitely worse. Butter fat has reached 7d and wool at the late sales has sold as low as lid per lb., and how can any farmer carry on his business at these prices ? He cannot employ labour and he cannot pay interest, nor can he carry on improvements to thq farm. Tho Government, wisely or otherwise, has taken drastic steps to save the men on the land, and whether the method adopted is the right one or not, remains to bo seen.

"New Zealand’s trouble to-day is that she has only one market for her produce, but Australia on the other hand, is developing a trade with tho Far East and last year she exported over £20,000,000. However, I am glad to be able to say that the question of trading with the Malayan States and the Far East has been taken up, and that the Government is prepared to assist in establishing a market for our goods.” 1 A voice : “Why not send a commission to the Chatham Islands?” Mr,. Nash then dealt with the country’s financial position and said thf;t in its efforts to tackle the problem the Government was deserving of some consideration, instead of abuse. Inflation v, Further Deflation. “It is a question of inflation or further deflation,” said Mr. Nash. “Deflation means a further decrease in wages and we have to avoid that at ali costs. AVhat we want to consider is whether the inflation of the exchange is going to accentuate this position. The Prime Minister and Minister of Finance said the raising of the exchange is going to help it.” All this time Mr. Nash was being subject to a running fire of interjection but ploughed steadily through it. Mr. Nash quoted figures relative to the raising of the exchange in Australia. When it was first raised there had been a slight rise in the cost of living for a short while but then it fell and continued to fall to a figure representing 13 per cent. He presumed that had assisted the Government to the conclusion that the same thing would happen in Now Zealand. It was a funny thing the business people of Australia appreciated the rise in exchange. J He commenced to refer to a letter he had read from an Australian manufacturer and the cross-fire commenced again. 1 I A voice : “Ask Mr. Hodgens to keep order for you.” I Mr. Nash: I do not want Mr. Hodgens to keep order for me and never did. All ! I can say is that you afforded him an j opportunity to deliver an address which j yon deny me. I Mr. Nash read the letter which said the raising of the exchange had enabled 1 that manufacturer to employ 300 more hands. | A Voice: “Don’t forget the flower ’show. (Laughter.) | Mr. Nash said one of the most re--1 gncttable features of the Government’s decision was the resignation of Mr. Downie Stewart. A Voice: Why don’t you do the same ? I Mr. Downie Stewart’s Resignation Regretted “Wo all know,” Mr. Nash went on, “that Mr. Downie Stewart -is held in high esteem by all classes of the community, so that his resignation at the present time is most unfortunate. HowL eyqr, l forge it .will ftgt be long befppe

Exchange the Politicians

we find him again holding a position in tho Cabinet. My personal opinion is that his absence will only bo temporary.” Mr. Nash said -he thought tho Exchange Bill might bo referred to a committee of the House to take evidence. A Voice: Another Commission.

As far as the unemployed were concerned, he would support any move for their benefit and would advocate in the House tho provision of £1,000,000 from the Consolidated Fund. Mr. Nash thanked the audience for listening to him and sat down, to the accompaniment of cries: “How are you going to vote?” Business Men Put Resolution Forward

Mr. W. 11. Brown said he had been asked by the business community to move a resolution. He said be believed it would bo better for farmers to walk off their land than put up with the increased exchange. It would mean nothing more than from Id to lid per pound of butterfat for them and what help was that when prices were still going down. Mr. Brown then moved on behalf of the business community of the city: “That this public meeting called under tho auspices of the Chamber of Commerce enters a strong protest against the raising of the rate of exchange on London by a further 15 per cent as the action will not at present materially assist the farming community, while it rebounds against the consuming public and definitely increases taxation in a country unable to stand it, and more especially after the statement by the Prime Minister that exchange manipulation was a matter for the banks alone; and that Mr. Nash in the interest of the citizens of Palmerston North, be respectfully requested to record his vote in the House against such unfair and inequitable legislation. ’ ’ Tho motion was seconded by Mr. F. Cousins, vice-president of the Chamber of Commerce.

The chairman then opened the meet' ing for general discussion.

Mr. W. F. Cutler was the first to avail himself of tho opportunity. He thought the only exchange the people were interested in at the present moment was an exchange of politicians. (Cheers and applause.) What was tho use of increasing money in circulation if it put up the cost of living? The depression was man-made and it was the duty of the public to remove tho men who had made at. (Applause.) The slogan of party right or wrong had been suicidal and what the people demanded was the truth and not a lot of hypocrisy. Easier to Criticise Than Suggest Remedy

Mr. F. W. Hubbard drew attention to the fact that not one farmer was on tho stage. Anybody could find fault, he declared, but the hard point was to find a remedy. If nothing practicable could be embodied in the resolution before tho meeting, it would be better left alone. Interest should be forcibly reduced and this would help the unemployment problem in no small degree.

Mr. E. O. Bond stated that the raising of tho exchange had “put tho lid en everything” and he know of ono employer who would be dismissing some of his employees as a result. He had yet to learn that the raising of exchange would do any farmer one iota of good. It seemed a shrewd movo by the Government to delay the fall in the price of money and land. Mr. E. Rcdward thought Palmerston North could very well let Mr. Nash vote with tho Government on this occasion seeing that it would be tho last occasion that he would represent them. (Laughter.) The motion moved by Mr. Brown was then put to the meeting and carried on the voices by a large majority.