Loan to Reduce Unemployment

Manawatu Times, Volume LIX, Issue 7473, 25 May 1934, Page 7

Loan to Reduce Unemployment

Possibility Mentioned by

Minister

MONEY FREE OF INTEREST

Per Press Association. AUCKLAND, Last Night.

Tho possibility of the Government raising a loan to assist in the reduction of unemployment was mentioned guardedly by the Minister of Employment (Hon. A. Hamilton) when replying to an Auckland deputation.

“A lot of suggestions arc made to us for dealing with the unemployment problem,” said tho Minister. “It is our job to see whether we can lit them in in a practical manner with tho funds available. After all, we may have to find further funds, and we may decide to ask the Government to find us some loan money to assist us with some of our problems.” “You say some of our systems have failed,” continued Mr Hamilton. “It does look a hit as if some of our economic systems, some of our monetary systems and some of our unemployment schemes are on trial. The unemployment problem is pretty sticky and has given evidence that we cannot get rid of it quickly.

‘‘We are here to meet you people and to see if we can bettor tbe position of the unemployed. We have to take all the relevant facts into consideration. We have a big responsibility in handling the unemployment fund. We have practically spent the year’s income and we do not feel like recommending an increase in the tax.” The Minister said he was interested in a suggestion regarding the provision of money free of interest.

“We could get the money free of interest.” said Mr Hamilton, “but we would have to watch the result. The scheme might have in it a back-kick you do not anticipate. I know tbe scheme was worked with Bradburys during the war, but even then it bad unexpected results. Such a scheme might discount all the money in existence in our country, at least.” The Minister said the Unemployment Board was doing all it could to get money into circulation. The No. 10 building subsidy scheme, by the expenditure of £400,000 or £500,000, had stimulated the circulation of about £5,000,000. ‘‘lt has been said that the No. 5 scheme has been a failure, and there is an element of truth in that,” continued tho Minister. “If we can got the men on full-time work at standard rates, that is what we want. We will endeavour to do that, and if we can, nearly half of our men will have gone off the No, 5 scheme.”