CREDIT AND CURRENCY

New Zealand Herald, Volume LXXII, Issue 22262, 9 November 1935, Page 15

CREDIT AND CURRENCY

POLICY OF LABOUR LEADER'S CONTENTIONS MAIN ISSUE IN ELECTION [by TELEGRAPH —PRESS ASSOCIATION] OAMARU, Friday A meeting in the Oamaru Opera House to-night, attended by 700 electors, was addressed by tho Leader of the Parliamentary Labour Party, Mr. M. J. Savage. Mr. Savage stated that the main question facing tho Dominion at present was one of monetary reform. While it would be wrong to suggest that control of currency and credit was the only issue before the electors, it would be wrong for people in responsible positions to try to hide the fact that the present monetary system had outlived its usefulness. With tho aid of scienoo and invention, said Mr. Savage, the Dominion was in a position to raise the standard of living of its people far above anything that had over been dreamed of in the most prosperous periods of the country's history, provided, of course, that the purchasing power of the rank and file of tho people was sufficient to enable them to purchase the equivalent of their production. Unless increasing production was reflected in the homes of the people in the form of increased leisure, education, and general welfare, there was little inducement to greater efforts to increase the country's wealth. The power of money was the greatest influence wielded to-day, and the time had come for thinking people to face up to the problem of control of credit and currency in order to make. the medium of exchange serve tho needs of tho people. Vested interests would spend thousands during the present campaign in order to mislead the people; and to maintain their power, but with a majority in Parliament Labour would face the issue and safeguard the people's rights and savings. A vote of thanks to Mr. Savage and confidence in the Labour Party was carried with enthusiasm,

FINANCIAL STABILITY GOVERNMENT'S ACHIEVEMENT VIEWS OF MR. W. W. MASSEY The National Government candidate for Hauraki, Mr. W. W. Massey, opened his campaign in the northern district of the electorate at Mangere East last nidit, Mr. J. Clark presiding over anTittendancc of about 60. Mr. Massey made a staunch defence of the Government's administration during the past four years. He was given an uninterrupted hearing and a vote of thanks and "complete confidence."

Mr. Massey said it had to be realised that New Zealand was dependent almout entirely on her exportable surplus of production. People would have said the Government was not doing its duty had it not attempted, in a fearless fashion, to adjust costs against a shrinking income. "Being of the true British stock the members of the Government did the right thing and faced the realities of the last four years," added Mr. Massey, in asserting that the people of New Zealand would endorse that courageous policy at the election. He said every step taken by the Government during the last few years was carefully planned. While not in favour of every decision, he was satisfied that the major adjustments had been inevitable, and were for the country's general welfare. He had personally been prepared to accept his share of the* unpopularity that was showered on tho Government's shoulders. The effect of the emergency measures adopted by the Government, which have been termed socialistic and revolutinary by critics, has been generally good, and over H',ooo voluntary adjustments had been made between mortgagees and mortgagors. The Government had reduced the public debt by over £1,200,000 during the worst period of the depression. Mr. Massey admitted taxation had been increased, but he said he considered that policy was preferable to continued borrowing. The undoubted increased confidence in the country was due to the success of the Government's policy. This was also shown in tho withdrawal of support to the Democratic Party by a number of prominent, business people. The candidate said he was convinced that the raising of the exchange rate was the most satisfactory method of assisting the primary producor and the country generally. It would have been better had it been increased 12 months earlier. The Reserve Bank, which alone now controlled exchange, was one of the most beneficial measures ever introduced in the Dominion. No one could dispute the fact that the Government had maintained and safeguarded the Dominion's credit. The national assets had been preserved and the budget balanced. Financial stability, reduction in taxation as soon as possible, and tho ■promotion of national industry would bo pursued by the Government if returned.