FINANCIAL CRISIS?

Nelson Evening Mail, Volume LXXIII, 14 June 1939, Page 4

FINANCIAL CRISIS?

OPPOSITION LEADER’S VIEW POLICY OF GOVERNMENT liLAMED I tinted Preim Adnouiationl DUNEDIN, 13th June. "Because the financial crisis to-day is the topic foremost, inevitably, in most conversations that turn on politics, it is well worthwhile making a concise survey of the circumstances that have led to the situation in which wc now find ourselves,” said the Leader of the Opposition, the Hon Adam Hamilton, in a statement to-night conveying the substance of his address to a meeting nf members and supporters of the National Party. “This is the subject that will be in the forefront of discussion in the coming session. The country faces serious commercial, financial and industrial difficulties and I would emphasise that all this is the ctircct result of gross overspending and incompetent administration. "Since 1928-29," Mr Hamilton said, "total taxation has increased from £17.800.000 to £36.700.000 in 1937-38. In the same period taxation a head has advanced from £l2 4s 3d to £23 Is 3d And taxation is still increasing

"So far as the next Budget is con- ; cerned, it appears certain that another j £5.000.000 or £6,000.000 will need to j be extracted from the community to I balance it. CAUSE OF CRISIS "The Government's policy has been 1 the direct cause of the present finan- ! cial crisis, with its emergency measures ! concerning imports and exports,” Mr I Hamilton said. "And to-day we find the f Minister of Finance abroad, endeavour- , ing to find sources of money, even though last year he was the same Min-! ister of Finance who said that no additional funds had been raised abroad i and that it was the policy of the Government to repay external loans as quickly as possible, and to restrict borrowing to amounts necessary for con-! version purposes. "This somersault in policy is a most! difficult thing to understand to-day. and ' to many it suggests the same sort of ; crisis that the Labour Party laced in England in 1931. "It will be interesting.” Mr Hamil- ; ton said, "to see how the Government j intends to meet the emergencies its policy has created and will continue to j create. The Government has. been fore-; cd to appeal for funds, both internally j and overseas. Inflation is continuing. and must still reap its unhappy harvest. Money has been depreciated, and our credit injured. Import restrictions are further involv'd to-day by the impossibilities of i - cn meeting the demands ot importers hoi l licences. Finance is not available to continue Public Works on the former lavish scale. The country faces serious commercial. financial and industrial difficulties. "I would emphasise that all this is the direct result of gross o/erspending and incompetent administration; all this came after years oT unprecedented export incomes.” added Mr Hamilton. "Instead of being in the throes of emergency measures, we should be enj joying plain sailing, security and pros, perity for all sections of the commun-