THE New Zealand Herald AND DAILY SOUTHERN CROSS MONDAY, SEPTEMBER 17, 1334 FEDERAL ELECTION

New Zealand Herald, Volume LXXI, Issue 21907, 17 September 1934, Page 8

THE New Zealand Herald AND DAILY SOUTHERN CROSS MONDAY, SEPTEMBER 17, 1334 FEDERAL ELECTION

After an unusually quiet campaign the Federal election has resulted in a complete victory for the antiLabour parties. To the world the result will have one meaning only—that a substantial majority of the people of Australia endorse the policy of reconstruction that is lifting the country out of the economic morass, that they have confidence in ordered procedure, under which facts have been faced and heavy burdens shouldered, and that they reject without qualification all economic doctrines that would destroy the existing system and pave the way to State Socialism or Sovietism. The victory has significance outside Australia. In many among which New Zealand was one of the exceptions, elections, during the worst of the depression, usually went against the existing administration. It was a time when no Government was popular; at least, there was a .common desire for change. Disappointment, uncertainty and unrest were expressed by resentment against the Government at the polls. The outcome of the Federal election is a portent that now that the worst is past, with trade on the upgrade and unemployment less acute, the old stabilising influences are recovering their strength and that democracies are becoming less inclined for experiments. Australia, of course, has had more experience of government by the extreme Left than any other British country. The perils of Langism in New South Wales, with all its administrative irresponsibility and inefficiency, taught a sharp lesson that is not forgotten. The fact that the election was "quiet" also has its significance. Certainly the employment of the radio for the broadcasting of speeches may have been one reason why audiences at meetings for the most part were small. But another, unquestionably, was that with such serious issues facing the country the ordinary methods of rousing the electors made no impression unon the average voter. It was, as a commentator remarked, pre-eminently a thinking man's election. The Government went to the country with no spectacular platform. It submitted its record of achievement in the task of rehabilitating the country—an achievement that had reached the stage where, in spite of the huge national debt, taxation had been reduced —and with no promises beyond that of continuing the general plan of internal reconstruction and of redoubling its energies for the development of trade abroad. It was- opposed by the two Labour groups, both of which, in varying degree, intended to place banking and credit within political power. The Commonwealth Bank was to lose its independence, and while both Mr. Scullin and Mr. Lang, during the campaign, performed the acrobatics which inflationists and monetary adventurers usually display when seeking votes, there was no doubt whatever as to where their policies were trending. The return of a Labour Government, particularly one dominated by Mr. Lang, would have undermined Australian finance, put capital to flight and killed the confidence of an investing public that normally is very bold and enterprising. With v the wilder aspects of Mr. Lang's platform it is not necessary to deal. Hid record is known and his irresponsibility is a byword. He carried to the Federal sphere all the ideas which nearly brought New South Wales to ruin. The milder Mr. Scullin combined with his nationalisation of banking, a policy of economic nationalism that must be regarded as amazing in a country that exports 90 per cent of its wool, 40 per cent of its wheat and 45 per cent of its butter. In a speech he declared that every nation that did emerge from the depression would do so as a self-contained nation. The electors have delivered their verdict upon that economic miracle for Australia.

If, as appears probable in the new Parliament, the United Australia Party will be unable to command a majority without the aid of the Country Party, a new influence may appear in regard to protection. Although as antagonistic to Labour as the United Party, the Country Party, which may now be able to command some . Cabinet representation at its own terms, is uncompromisingly hostile to the Government's tariff measures. During- the election there was cross-fire between Dr. Earle Page and the Prime Minister on the question. The "interesting developments" to which reference is made in the message that states the Country Party will now hold the balance of power, will naturally centre in the tariff. Mr. Lyons says that the primary and secondary industries must be fostered together, that unemployment in the .cities is no less an evil than unprofitable farming. Dr. Page declares that many manufacturing industries that have

been protected and encouraged for years have failed in the crisis, contributing heavily to unemployment. Now that the common enemy has been vanquished it is more than likely that the allies will have a few differences of their own to settle. Mr. Lyons is out to find customers abroad and is prepared to negotiate trade agreements with foreign countries. Dr. Page naturally agrees, but declares that through high protection Australia must not discourage these customers. The abhorrence of the Country Party for duties is liable to wear thin, however, where primary produce is concerned. Thus the trade relations between New Zealand and Australia may still have difficulties in the future. The absurd dispute involving potatoes and oranges may not reach a speedy ending- v