POLITICS AND ECONOMICS

North Canterbury Gazette, Volume I, Issue 1, 12 August 1932, Page 5

POLITICS AND ECONOMICS

LABOUR POLIGY EXPLAINED. ADDRESS BY Mr. WALTER NASH. In the opinion of Mr. Walter Nash, M.P., the Labour member for Hutt, nothing has damaged the country so much since the depression began as the gloomy speeches of the Prime Minister. Mr. Nash addressed a meeting in the A. & P. Hall, Rangiora, on Saturday qight, which, though it was not a large meeting, xvas not small for such miser-: able weather, andl Mr.- Nash had its closest attention till his very last word. The chair was taken by the Mayor, Mr. W. A. Rowse, who in introducing Mr. Nash described him as one of the Dominion’s leading speakers.

Am Outstanding Fact. Mr., Nash began by saying that the one outstanding feature of Western civilisation was the fact that there were between twenty millions and twenty-five millions of people looking for work and unable to find it. He had recently been reading a review issued by the International Labour Office on the unemployment situation of the world. If they had all been engaged in 1931 as they were in 1929, and had been as productive in their labour as they were in 1929, they would have created, in produce, between six thousand and seven thousand million pounds worth of value. The actual loss was three times the value of the total gold in the world that is used as the basis of currency, which is approximately the full amount of the British national debt. Britain could have wiped off her debt if that had been produced. To link up these figures with New Zealand, there were between 54,000 and 55,000 adult males registered as unemployed; between 8,000 and 15,000 young people (under twenty) registered; and the estimated figure of unemployed women was between 5,000 and 10,000. These figures did not- represent the actual number of people being helped out of the unemployment funds. Mr. Coates said that the funds were being used to support 10,000. Put the average earning wage nb £4 a week, on the 1929 basis, and we had a weekly loss of £200,000, or £10,000,000 a year. Government Criticised. Instead of the Government providing for all these, what had happened? From September 1930, when there were 7,000 registered unemployed, the ratio of increase was greater in New Zealand than in any other country in the Western world, and on Mr. Coates’s figures it was an increase of 1,000 per cent. He suggested that at least a large proportion of the existing unemployment in New Zealand was definitely due to the Government’s policy. The loss due to the fall in prices was £20,000,000, and the fall in income for the two years was £60,000,000, which was definitely due to the Government’s

inflation policy. No one had done more harm in' this country than the Right Hon. George Forbes. At the Parnell election, Sir Joseph Ward proposed to have a slight surplus; less than a month after Mr. Forbes announced a three million deficit, even though at the election he had said they, would make ends meet. Nothing tightened up the purse-strings of tnose who did have money to spend more than these melancholy pronouncements by the Prime Minister..

The Drop in Income. In 1929, exports realised £57,000000; in 1930 about £37,000,000, a £20,000,000 loss, or a loss of £20,000,000 worth of imports. The goods sent overseas were sent for two purposes: (1) to pay interest on the money previously borrowed, and (2) to pay for goods, imported into the country. Imports declined by even more than exports, and were at a lower point, so far as their value was concerned, than they had been for sixteen years. In other words, the country was £20,000,000 worth of products worse off from importing, and the Government’s policy changed it into a loss of £60,000,000 in income. It should have set out with the displaced labour to create in the country the products that we were previously importing from overseas. Had we done that the loss would probably have been reduced to £30,000,000. For example, we import half our boots; hut we had 78 hoot factories in the Dominion, and four, if properly organised) could make all the boots we required. Clothing imported was worth £l-j millions and that could have been made here in our twenty odd woollen mills.

Disorganised Industries. There was nothing more disorganised than our woollen and boot manufacturing industries. Some years ago there was a large exhibition in Canada, and Mr. Collins, on behalf of New Zealand, exhibited New Zealand rugs, blankets, etc. One of the largest Canadian retail firms made an inquiry, because they were of the opinion that our blankets were of a better texture and weave land quality than those they had been buying from Scotland. They wanted ceidain sizes and weights and designs. They told Mr. Collins the price they were paying, gave him samples, and asked him to obtain quotations for quantities never heard of here before. When he came back he called a meeting of manufacturers, explained what was required, and asked for a quote. From that day to this he had never had a quotation. New Zealand blankets were as good as any and supplied all New Zealand’s requirements, but if the trade were properly organised, it could also supply other large markets. The Government should call manufacturers together and tell them to sink their petty differences and organise some competent manufactory for rugs and blankets and sell them overseas. If they would not do this they should be told that they would lose their protection. If they would do it they could have the maximum protection .to compete with countries overseas. These were directions in which the Government could have overcome minor difficulties, and by not doing it the Government was responsible for half of the trouble here. It was a defect in capitalism that had to be removed if we were not to perish. We ought to send to Britain competent and able men to negotiate with competent and able men there for the purchasing of commodities on a reciprocal trade basis. That was only the embryo scheme, but' he was satisfied it must come into operation. The machinery would be set running as soon as a Labour Government was in power, and then we would have a bulk purchasing system, New Zealand asking Britain to guarantee to take, say, so many million pounds’ worth of butter every year and undertaking in return to purchase some millions of pounds worth of British manufactures. It was better than tariff bargaining, and the only policy that would save us.

Financial Control. Financial control should b© taken out of the hands of the few who control it, and put into the hands of the whole people. In New Zealand we had six banks operating in the wisest of ways for the benefit of their shareholders. He was not criticising them. The directors were carrying out the function of the office to which they were appointed. Their purpose was clear —to use the capital subscribed to make the maximum profit. If seven or seven and p half per cent, would be the rate if it paid them, six per cent, if six paid better. Never mind the farmers or primary production, or the economy of the Dominion. If that conflicted with the interests of the banks, then it would have to go. We could not afford to be held under this control. State banks should be organised with the complete financial control of the assets of the country and its credit, and it was the policy of the Labour Party to mJake that change as soon as it could. He hoped that the country in its own interests would not be long in giving Labour an opportunity to retrieve the blunders of the Coalition. The task would not be easy, since they could not start where their opponents should have started when our difficulties first began, but the longer a start was delayed the nearer the country would come to complete collapse.