THE ELECTION CAMPAIGN.

New Zealand Herald, Volume LXII, Issue 19144, 9 October 1925, Page 11

THE ELECTION CAMPAIGN.

PRIME MINISTER'S TOUR. ENTHUSIASM AT OAMARU. FINANCIAL POLICY OUTLINED. PROGRESSIVE DEVELOPMENT. [BY TELEGRAPH. —OWN CORRESPONDENT. ] OAMARU. Thursday. A magnificent reception was accorded the Prime Minister, Hon. J. G. Coates, when he opened here to-night a campaign he is to carry right through New Zealand before the day of the election. The big ball in which the meeting was held was packed to the doors, upstairs and downstairs, and many had to stand. Every seat on the stage was occupied. Mr. Coates was cheered when he appeared, and warmly applauded when be rose to speak. The Mayor, Mr. James McDiarmid, presided. In introducing Mr. Coates, he said the electors could look forward to his filling the office of Prime Minister with credit to himself and honour to the country. Mr. Coates' speech was enthusiastically received and frequently applauded. At the conclusion a vote of thanks and confidence was moved, and on a show of hands was carried with only two dissentients. Referring 'to the late Mr. Massey, Mr. Coates said vi could be said with definite assurance that his Government suceessfullv guided the country through perilous years of stress. His policy was being successfully developed when the hard of death removed him. A Programme to be Fulfilled. M I now appeal to the people of the country, on whose vote alone I can hold office and carry out a policy, to confirm and ratify my tenure of office and approve my policy," said Mr. Coates. "The policy which I propose to follow is set out in my manifesto and I can appeal to the sense of fairness inherent in the community to be given a fair chance to translate my principles of political economy and progress into practical effect. It is not my intention to put forward a lengthy programme of legislation appealing to the expectation of every class of the community, and then, on being returned to office, to drop much of the programme till another election comes round. The need of the moment is not so much a mass of new legislation as the develop* ment of what already exists on the Statute Book, a sane, efficient and businesslike administration of it, and the amendment of it from time to time to meet changing conditions. "At no time in the history of the Dominion has there been greater need for a strong aud safe Government than at present. To-day the world is witnessing on every side the insidious penetrations and disruptive influences of forces linked through sources quite foreign to our national view of public matters. These influences would destroy thor.e free institutions. rWiU Uiiiilies. jsikh .ire the boast u7 rsriftsn voronnmrcifci ana have been acquired at sucli cost and effort over the long course of centuries, and for which so many of our gallant citizens fought, .suffered and died during the Great War. A strong Government is necessary to fight these influences, maintain the British principles of law and order, and keep the country free from extreme socialistic doctrines. 1 accordingly ask for support to enable me to form a strong and safe Government, reflecting the democratic spirit of the nation. With such a Government I will do all I can to foster such a spirit and to apply the power entrusted to me in developing liberty, pplitical and economic, free from class ascendancy and privilege, and in maintaining the principles of freedom and equality of opportunity so that the humblest 'member of the community can be truly said to carry a "marshal's baton in his knapsack," and by qualification and application, be able to fit himself for the higher tanks of citizenship." Progress With Prudence. Outlining the Government's financial policy, Mr. Coates said the financial problems arising out of the war. together with the difficulties of post-war reconstruction and financial deflation, made it necessary that the first and most important plank in the policy of the Government should be economy in national expenditure to enable " the country to live wiihm its income. Nevertheless, that economy should not be pushed to such au extreme as to interfere with the development of the resources of the country, an object which it must ever be remembered was essential to increase exports, extend employment and encourage capital from abroad for development purposes. Sound finance must always constitute the firm foundation of good Government. The heavy war debt rendered it doubly important that we should proceed with the utmost • caution. Borrowing was necessary for hydro-electricity irrigation, roads, railways and railway terminus improvements. Post-war Economies, It would be remembered that in 1922 as a result of post-war conditions, aggravated by the fall in the prices of primayy products and the heavy importations due to the filling of duplicate orders previously placed with the manufacturers in England, the Government had to face the question of checking increasing expenditure and effecting economies, in order to establish a balanced Budget and relieve taxation. Extensive economies were instituted which resulted in a saving of nearly £4.000,000. These economies made it possible ;.o grant much-needed relief to the taxpavers, and a progressive policy of reduction in taxation was inaugurated end had been steadily pursued since 1922. The annual value of the land and income tax remissions was estimated at £2,973,000. During the same period, reductions were made in amusement tax, customs duties on tea and tobacco. During the last session, the duty on mortgages was abolished, and concessions were made io racing clubs and penny postage h&d been re-established. The total value of all remissions and concessions was estimated to be .C4,026,G00 a year to tle taxpayers. At the time these reductions w ore undertaken, in addition to other liabilities, the Consolidated Fund had to carryheavy subsidies for flour and butter, the cost "of which amounted to £1,860,000 for the period 1919-20 to 1922-20. This pruclent administration of the finances, aided bv our great natural assets, _ a geinal climate, fertile soil, and dustrious and resourceful people, led to a speedy return to prosperity; in fact., there was probably r;0 country m the world that made such a speedy recovery from the aftermath of the war as this Dominion. The National Expenditure. To-day the Government was being i accused in some quarters of extravagant administration, and figures are being quoted somewhat wildly in support of this charge. The charge, where genuine, was. however, based on incorrect analysis of the figures. It was usual when makintr these charges to point to the heavy increase in expenditure during the las., decade, 1914-1925. An increase of £15,000,000 looked imposing, but when the figures were analysed what was the position? About £3,000,000 of the _mcrease would be found under the. heading of permanent charges, and was c "> efl y due to the war, in connection with wnicn the charges for interest and sinking fund pud pensions amounted to

Then there was an increase of about £600,000 in pensions, apart from war pensions, while interest and sinking fund on capital borrowed for development and the general needs- of the country amounted to approximately £1,300,000. The relatively small balance of the increase was mostly absorbed in increased subsidies to hospital boards and similar charges. Turning to the annual appropriations, which covered the working expenses and general charges of the Government, there | was, on the face of things, an increase of £7,000.000 over the period under discussion. Investigation, however, would show that the figures in no way represented the relative increase in the burden of taxpayers. Firstly, it might be pointed out that expenditure for each year included the working expenses of the Railways and the Post and Telegraphs Department, which were more than covered bv their •receipts. Other increases were due t» changes in the accounting sgrntcm. Certain departmental r«jcptpis, amounting to about A,520,000, were shown on the receipt side of the account, instead of being ! deducted from the expenditure, as was the case 10 years ago. Finally, and this applies to all comparisons with pre-war expenditure, allowances must be made for the rise, amounting to at least 50 per cent, or 60 per cent, in prices and wages. Taking the lower figure, this meant that the figures for 1924-25 must be reduced by one-third before they were comparable with those for 1914-15. Finance for Farmers. The Prime Minister proceeded to, discuss the Government's intentions regarding land settlement as outlined m his manifesto, and mentioned the steps taken to examine the progress of agricultural banking abroad with a view to the best of existing schemes being adapted to meet local conditions. He announced that the Government has been in negotiation with concerns that lend a considerable amount of money on rural securities, and it is believed that there will be more money available for rural development than there has been for the past few years. It had also put before certain lending institutions proposal;: asking these concerns to lend on an amortisation scheme. The Government will do all it can, he said, to encourage private capital to assist farmers in developing their industry. "A factor that contributes to the farmer's anxiety is the feeling that his mortgage will become due m five years, ana in addition to that there is the possibility of his not being able to renew his mortgage." said Mr. Coates. "He is also faced with certain recurring costs in regard to renewals. Under a table mortgage system, this anxiety is completely disposed of." The gentleman who moved the vote, of thanks and confidence is a returned soldier. '' J speak as a digger who went overseas with Mr. Coates," he said, " and I tell you that over there where men are really tried out, he was recognised as a leader. There was no more popular officer in the New Zealand forces, and if he is as good a Prime Minister as he was a soldier, he will do me and will do New Zealand." HAMILTON NATIONALIST. ADVOCATE OF COALITION. ADMINISTRATION CRITICISED. [BY TELEGRAPH. —OWN CORRESPONDENT. ] HAMILTON. Thursday. The National candidate for the Hamilton seat, Mr. H. W. Milner, of Matapara, opened his campaign in the Hamilton Town Hall this evening. The Mayor, Mr. J. R. Fow, presided over a fair attendance. The candidate critised the Government's administration of the Soldiers' Settlement Act and the country's finances. 1-Ie charged it with being the friend of the monopolist and trusts. He said the Government had passed some excellent measures, but had failed to administer them. Mr. Milner advocated the establishment of a Coalition Government, comprising the best brains in the country, which would stand opposed to Labour. He considered that a State bank should be established and fuller representation should be given New Zealand in Imperial and in ternational deliberations. A more progressive land policy should be pursued. Only one question was asked, and after some delay a vote of thanks was accorded to the speaker. STRIKING AND WARS. MR. LEE MARTIN'S ATTITUDE. [BY TELEGRAPH. —OWN CORRESPONDENT.] HAMILTON. Thursday. Answering questions at Matangi last evening, Mr, Lee Martin, Labour candidate for Hamilton, said he was extremely sorry the attempts made to settle the shipping strike had proved unsuccessful. He was not an advocate of the strike method, but this seemed the only remedy the men had. There should be some saner way of dealing with these questions. It was a reflection on our intelligence and on our social system that in so many of these disputes no other method was adopted than striking. His sympathies were with the men in their endeavour to prevent the reducing of their wages to a level which made them slaves. Enormous profits had been made by the shipping trusts during the war, representing over 40 millions, and it was hard to reconcile the attitude of the owners. The Labour Party had no more to do with the strike than the Reform or National Parties, said the candidate, and it was absolutely unfair and unjust to saddle them with the responsibility. Asked if he would be willing to go to Auckland to help to man the boats the candidate said that personally lie would not be willing, but he had no objection to the questioner going if he felt it his duty. It was a matter for his own conscience. Asked his views on defence, Mr. Lee Martin said the Labour Party stood for no more war, but for international arbitration through the League of Nations. He did not believe in the policy, "If you want peace, prepare for war." He was ouite prepared to support a reasonable expenditure on defence and on the Navy, . but this should be kept as low as possible, and our energies devoted to the abolition of war and the establishment of a reign of peace on earth and goodwill toward all men. ADDRESS AT COROMANDEL. CONFIDENCE IN MR. COATES. [BV TELEGRAPH. —OWN CORRESPONDENT. ] COKOMANDEL. Thursday. Tho Government candidate, Mr. T. W. Rhodes, addressed the electors at C-oro-niandel on Wednesday. The hall was filled with -i representative and influential audience, which afterwards carried a vote of confidence in the candidate and the Prime Minister. It was the most orderly political meeting ever held in Coromandel. the paramount duty. KEEPING OUT EXTREMISTS. [BY TELEGRAPH. —OWN CORRESPONDENT, j FEILDIN G. Th u rsd av. The Government candidate for Oroua, the Hon. D. If. Guthrie's late seat, is Mr. Gordon Elliott, a strong supporter of the ward system of election of the Dairy Control Board. Asked iT he would vote against the Government should the question be made one of no-confidence, Mr! Elliott said it was extrerpely unlikely that the question would become one of no-confidence. He reminded the questioner that his first duty was to keep the extreme party off the Treasury Benches and he would vote for the Government on all no-confidence motions. In this case he would vote with the Government and then appeal to his constituents for confirmation or otherwise of his action. .