CARELESS FINANCE.

New Zealand Herald, Volume XLIX, Issue 14923, 22 February 1912, Page 8

CARELESS FINANCE.

CONDEMNED BY MR. ALLEN, * ' RESULTS OF PLUNGING. A telling speech was delivered by Mr. James Allen (Bruce) , towards the close of the debate last evening.' Mr. Allen safd that a telling indictment had been levelled against the Government'by the Leader of the Opposition, but it was ho answer to say that there were blackguards in the community. Not a single indictment had been answered It was useless for the Prime .Minister to make, an appeal to the country for personal sympathy for himself, and."to declaim that large landowners were behind the Opposition. The fact was that when the member for Tauranga and himself said that the application of the graduated tax.,'was tho proper way to burst up large estates the Government sent its agents through; Hawke's Bay to obtain promises of support from the large landowners. In regard to tho Dreadnought the Prime Minister had used means which he ought not to have used. The Prime Minister had accused the Opposition of innuendo, yet Sir Joseph Ward's own speech was full of accusation and statements which he could never substantiate. No member of the' Opposition had ever suggested that pickings from tho loans had fallen to the Prime Minister. He could not accept, with equanimity the ' statement regarding the' £5,000,000 loan. Eighteen years ago there was no need for the employment of underwriters, yet the return showed that lfcper cent, had been paid for underwriting and commission. As a result of the reckless < plunging finance of the Prime Minister the credit of New Zealand was not so good as it was when he assumed office. Now Zealand stocks had depreciated below those other Australasian colonies during the last .few years, though , a few'years ago they* occupied the proudest position among the colonial stocks. A ' Good Deal of Humbug. The reason for Sir John Findlay's visit to England, continued Mr. Allen, was not given at the time. It was explained ithat he was going to settle two legal matters, and not that he was going to the Imperial Conference. There was a good .deal of humbug about the settlement' of '■ tho other claims, which seemed to require the visit of someone to England every four years, and they were not yet settled.' This was another instance of the indifforence towards Parliament which bad caused the revulsion of the feeling against tho 'Government. - Mr. Allen drew attention to the omission of "a loan account attached," mentioned by tho High Commissioner in his letter upon tho £5,000,000 loan. There • again was a lack of candour in the Government's treatment of the House. Referring to Mr. Wilford position Mr. Allen said that Mr. Massey's reply to'the request for a pair was perfectly justified. He said that the Reform party would repeal the Second Ballot Act, which it had always opposed. ' Reminded of the Governor's- Speech Mr. Allen said that all he would say about the Speech was that, in his opinion, a use had been made of tho Governor that should never have been made. The .Reform party had given specific charges of the extravagant expenditure of public money, but nothing had been heard of the promised inquiries. A Local Government Bill was promised annually for the last 18 years, and this promise was fulfilled only that day. He readily admitted that a certain amount of borrowed money was necessary, but it was a dangerous doctrine that borrowed money was tho only cure for high rates of interest and for employment. Surely it was a wiser policy to borrow only what was necessary, and expend it wisely, teaching tho people to bo self-reliant.

Leaving Difficulties Behind.

Carelessness and indifference to the welfare of tho people was what had brought tho Government to its present position, continued Mr. Allen. It was gross carelessness that produced the Financial Statement of last year, and the Prime Minister could not denv the mistake of £8,000,000 in- tho net debt, as shown in tho Statement. Anything was good ertough for Parliament when it came from tlio Bight Hon. Sir Joseph Ward. Twenty years of office had made the Government careless, and now in their desperate struggle for continuance in office they had put into the " mouth of the Governor words which His Excellency should never have been .asked to utter. " The Prime. Minister had not treated the country rightly in regard to the Financial Statement he had put before the House. He had not arranged for the renewals of any of the loans falling due after March 31~. Sir J. Ward : You take the responsibility after that. Mr.' Allen : Yon like to leave those coming after you in a..very difficult .position, and it will be" a, very difficult posi-

lion to come after you when you are de-liberately-leaving this diffioult situation. We gave tho hon. gentleman last year authority to raise £1,500,000 for public works. ' He has raised only a portion of it. I don't know' of any temporary advances. Sir J. Ward: We will see what your wonderful financiers can do. .You'll make a mess of it. Mr. Allen : I don't think you have treated fairly the man who is to come after you. , Sir J. Ward : Yes I have. Mr. Allen said tho Prime Minister had mado no provision for renewals of loans after March 31, and had left little more than £59,000 in the Public Works Fund. Sir J. Ward : If I had raised tho loans you would have blamed me. Mr. Allen: No. You must take the responsibility for what you have done. Mr. Allen added that times had been fairly prosperous here and in England of late, and the Prime Minister should have taken advantage of this to raise the loan, but there were now signs of a huge coal strike in Britain, and it might be difficult to float the loan. Pressure to Get Votes. Mr. Allen went on to repudiate the statement made by the Prime Minister that undue influence was being brought to bear with a view to influencing votes m the no-confidence division. He knew o.i no such thing on his side of the House, but if what ho heard was true there were such things going on on tho other side. Mr. Laurenson: Well, out with it. Mr. Allen: You'll get it by and bye. Mr. Massey: You will get it when tins time comes. . Mr. Allen: If there has been influence at all it has come from their side, not from ours, and there are members who coidd tell the whole story. (Opposition hoar, hears.) Continuing, Mr. Allen said he never knew of such things as were being done now, not even in the old days. It was a great pity that members were not free from ' all this kind of influence. They should set their faces directly against anything of that nature, and he hoped that after tho division a stronger and bet-, tor, and more self-reliant policy would be carried out in the interest of the country. More Explanations. Sir Joseph Ward admitted that there was - only £59,000 in the Public Works Fund, but there were authorities to borrow £1,709,000. „ • ■ Mr. Allen: Yes, but have you floated the loan? . > • Sir Joseph Ward : Has money always to be got by loan? Ho added that he was leaving the country in a stronger financial position than ever before, for fear of the blundering reckless finance of the member for Bruce through ignorance. (Laughter.) The payment oi commissions to brokers and the Bank of England, was not unusual. Mr. Allen repeated his statement that the Government was making it very difficult for the men who came after it to provide funds for public works after March 31. It would be especially difficult if tho banks wore then as short, of money as they were now.