NORTHERN ADVOCATE DAILY WEDNESDAY. JUNE 7, 1933. A FINANCIAL PLAN

Northern Advocate, 7 June 1933, Page 4

NORTHERN ADVOCATE DAILY

WEDNESDAY. JUNE 7, 1933. A FINANCIAL PLAN

Registered for transmission through the post, as a Newspaper.

Advantage was taken of tlioj aeting-I’rime 'Minister’s pres- j once in Auckland yesterday to urge upon him the necessity for the Government immediately to frame a programme wherewith to meet the economic depression. Proposals which may be regarded in some quarters as being of a sensational character were put before Mr Coates. That they arc far-reaching in their possibilities is a plain and unvarnished fact. In essence, the deputation, which was headed by the Mayor of Auckland and included an influential gathering of citizens, proposed that the Government should raise a national loan of £10,000,000, bearing interest at 3 per cent, with compulsory subscription where necessary. As an alternative, it was proposed that a national loan of £10,000.000 at 3 per cent he raised, with provision enabling such loan to lie repaid within, say, three years, out of funds to be provided by the issue of currency under the control of a Board of Currency. The reason put forward for these proposals was the vital need to put money into circulation again so as to reabsorb labour. Who will question the existence of this need? The only matter upon which there can be difference of opinion is the Avay by which this revitalising of the Dominion’s life can be effected. The appeal made to Mr‘Coates by members of his own political party was significant in more than one respect. though it was emphasised that the deputation was national in character and aim. The deputation proposed that the £10.000,000 should be devoted first of ?dl to subsidising the rates of pay to relief workers and to su bs.i d i s i n g the prim a ry industries. It should then provide loans for local bodies, for goldmining and prospecting, and for Government works. It was urged that the.se gamuts and subsidies would immediately reduce unemployment, assist in restoring the purchasing power of the con'snmer, and revive trade and industry, with the result that the need for assistance during succeeding years would be a fast diminishing factor. Mr Coates, while realising the need for bringing about the results which the deputation contended would follow the adoption of its proposals, uttered a word of caution. This attitude is justified, so long as it does not imply a policy of inaction. Mr Coates is reported to have said that ‘Making the various phases into consideration, I would say it would be impossible for our people to be worse off than they are today." Allowing for the exaggeration which seems to be a common falling on tin 1 part of everybody, Mr Coates’ words suggest that any plan which will make even a slight improvement is to he welcomed. It is therefore sincerely to he hoped that the Government will give immediate and earnest thought to the proposal of the Auckland deputation, and either adopt it or throw it out without, delay. The people are iu a frame of mind which will not tolerate a policy ofj “wait and see” unless good rea- 1 son for such a policy is forth-' coming. The Government should lake the people into its confidence so far as 11n- economic depression, is concerned. The Minister of Bmployment acted wisely in this respect when he reminded a Whangarci deputation that the only source of revenue from which the Unemployment Board can grant relief is the tax paidj by those of the people who arej still in employment. The Domin-j ion’s Treasury, lit 1 pointed out.j could not provide assistance. Hi was therefore the duty of the hoard to set' that the only re-, mainiug source was not dried up

tiiiiuH'Cssnijly, It is. no doubt, consideration of these fnets wliieb has moved tin* Auckland deputation to urge 1 lie Government to ! adopt a new policy. While not lotting so far as to suggest the on- ! propriation of 'private wealth, it jis proposed in effect that uu-' learned income should contribute j;i greater share to J lie com- 1 ! moil pool. Banking returns j for ilm March quarter show that j fixed deposits amounted to U30,1208,958 and fret* deposits; jto El 7, Hi 1.282, while, accord-1 ling to a member of the de-; jpnlation, £25.000,000 of unlearned income was distributed in ! New Zealand last year. Tt must I not be forgotten that a large | proportion of this “unearned income” is the proceeds of “earned income” invested by its earners in other days, and that it is subject to income tax. However. t here can he no q nest ion as to the inadvisability of allowing funds to remain in “cold storage” jif their circulation would assist the restoration of the Dominj ion’s economic life. Whether the j Auckland deputation’s proposed i cure would be effective is a mat- ! ter upon which opinions will j vary. ft is for these rea- | sons that the Government should hose no time in adopting or proving the futility of the scheme which lias been submitted to it.