THE New Zealand Herald AND DAILY SOUTHERN CROSS TUESDAY, JUNE 7, 1938 MR. HAMILTON'S SPEECH

New Zealand Herald, Volume LXXV, Issue 23057, 7 June 1938, Page 10

THE New Zealand Herald AND DAILY SOUTHERN CROSS TUESDAY, JUNE 7, 1938 MR. HAMILTON'S SPEECH

Taking his turn at the microphone last evening, the Leader of the Opposition unconsciously offered a contrast to listeners who had previously heard the strident assertion of Mr. Nash and the wordy torrent poured out by Mr. Atmore. Air. Hamilton was replying to both because Mr. Atmore, the self-called "Independent," left no doubt as to where his sympathies lay. Most of his radio time was spent on behalf of the Government. Avoiding the extravagance and exaggerations of his two opponents, Mr. Hamilton brought the debate back to the plane of commonsense, using the voice of reason against the voice of passion and speaking with a quiet sincerity that carried conviction. His listeners could not but feel that he knew their problems because he talked of the world they lived in and not of some impossible paradise in the world of make-believe. More than that, Mr. Hamilton did not set out blatantly to work on their feelings on the well-worn Labour model, yet, for all his reserve, every listener was aware of the warm human sympathies animating the Opposition Leader—sympathies deeply held and wisely tempered by political integrity and sterling purpose. Mr. Hamilton may not have heard the old saw, "Hell is paved with good intentions," but in his speech he showed his appreciation of its meaning. He would probably yield to none as an idealist, but he links the ideal with the real, the only method by which true and lasting progress can be made. This mixture'of sound sense with forward aspiration, this relating of ways and means with "the substance of things hoped for," fits well with the practical radicalism of the average New Zealander.

Balance is the essence of Mr. Hamilton's political philosophy—a true balance, even-handed justice, a square deal, a fair distribution, economic and social equilibrium. He returned to that theme more than once in last night's speech. Of special interest at a time when many people are pondering problems of currency and credit was Mr. Hamilton's insistence on striking and maintaining a correct balance between the unit of money and its purchasing power. In other words the value of money should be kept stable or constant. This is especially important, as Mr. Hamilton pointed out, in enabling money to perform its second function as a store of value. Money offers the means of storing savings against the day of need. Unfortunately the policy of the Labour Government in taxing and borrowing heavily, and spending the proceeds, tends to depreciate money, thus impairing its function as a store of value. Money deposited in banks or savings banks, or invested in bonds or mortgages "is! silently losing in real value or j purchasing power." The measure of that loss is given by the rise in the cost of living, an increase of 14 per cent since the Labour Government took office. Thus the sum of £ll4 is required to-day to purchase what would have cost £IOO in 1935. In other words the value of the New Zealand pound has fallen by about 12 per cent. In some directions, its value has fallen further, Mr. Hamilton aptly citing house building. Everyone drawing income from fixed interest bearing securities appreciates this point. Those on fixed salaries • have learnt the samo lesson. Even wages are not holding their start on costs. Money will not go so far; purchasing power is being lost. In the case of salary and wage earners, compensation may be won by giving another turn to the vicious circle, but that involves the deeper undermining of savings. 'Mr. Hamilton asserts that this monetary depreciation is not an accidental happening, being deliberately designed to eliminate capital and private savings. Whatever answer the Government may make to that grave charge, Ministers cannot deny that New Zealand money has depreciated and that they have in their hands complete control of currency and credit. They have not kept the balance even. This lack of balance has thrown the Dominion's price level out of equilibrium with the world price level and has produced the various disquieting trends that Mr. Hamilton noted. First is the shrinkage of overseas credits or London funds, partly due to the flood of imports attracted by the artificial internal price level and partly to the emigration of capital, denied opportunity in New Zealand. Unless the trend be corrected, Mr. Hamilton says the Government will shortly be forced to raise the exchange rate or control imports. His conclusion is sound if he allows that there is a third course —borrowing overseas —one that is, however, closed by Labour's policy. Prudent also is his warning against Labour's policy of tax, borrow and spend in good times, taking no thought for the morrow. New Zealand is living above her income when it is high and running the plain risk of accentuating the onset of depression. The same policy of "getting and spending," -laying waste our powers, contributes to the sharp rise in production costs that wili leave New Zealand farmers impotent against world competition in open markets unless the Government "honestly tackles the problem." Extravagance, higher costs and prices, dwindling London credits—these are the three dangers on which Mr. Hamilton lays especial emphasis. None can gainsay his diagnosis; the seeds of economic malady are there. The Labour regime certainly produced a hectic flush of life but the colour is already, fading, because the stimulus was temporary. On the other hand, speaking for over 100,000 members of the National Party, Mr. Hamilton says, "We seek to'bring lasting happiness into the lives of all our people."-