MR. LEE'S BOOK

New Zealand Herald, Volume LXXV, Issue 23143, 15 September 1938, Page 17

MR. LEE'S BOOK

FRANK EXPOSITION LABOUR AS THE AGENT HOW DOUGLAS CREDIT HELPED NEW VIEW OF PUBLIC TRUST - -'Socialism in New Zealand" is the title chosen by AI r. J. A. Lee, 31.P., Parliamentary Under-Secretary to the Minister of finance, for his new book. In it he seeks to show that New Zealand is already" far gone in socialism and destined to go the whole way. The H on. D. G. Sullivan recently accused, the National Party of "raising the bogey of socialism," but Mr. Lee jn bis book accepts socialism as a partly realised fact and makes its complete realisation his political objective. "New Zealand during the next few years," he yrites, "should tell to what extent a State can speed toward socialism along the democratic road, for speed to socialism we will." Hence Mr. Sullivan's "bogey" is Mr. Lee's B ° a '' Mr. Attlee's Blessing If other Labour leaders besides Mr. Sullivan are shy of coming out in their true colours, the .lit. Hon. C. R. Attlee, leader ■of the British Parliamentary Labour Party, does not mince matters. In an introduction to the book Mr. Attlee writes: "Labour men and women especially have watched with admiration the vigorous way in which the New Zealand Labour Party, having received an emphatic mandate from the people for a clear and definite a'dvance toward socialism, has proceeded to implement its election pledges. They have been heartened by the great success achieved. Mr. Lee in this book describes these achievements and surveys the great advances which have been made toward the Socialist Commonwealth."

Reliance on Destiny

That is how Mr. Attlee sees it, and - • how any plain man will view the Labour Party's* trend. To save those in his party who prefer camouflage.. -Mr. Lee opens with the statement: ''This book is not an official interpretation of the tendencies inherent in Labour policy, but merely one man's opinion." But ' that man stands on the fringe of the Cabinet, is the reputed leader of the large Left wing of the party, and is often discussed as likely to fall heir to Mr. Savage's mantle. What he has to say should therefore be heeded.

Mr. Lee declares again and again that socialism is not a religion with him. He ,is no doctrinaire. Yet his book shows socialism to be his cherished political faith, a faith advertised with messianic fervour. "It is good," he writes, "for socialism to be preached as richer life," and the prophet's pose is taken in speaking of the inevitable change to socialism.' This reliance on destiny rather than dogma is dangerous, suggesting the fanaticism / and somnambulism or Hitlerism. Socialist Destiny at Hand Listen, for instance, to the defiant certainty of'the following: "To-day the issue is not socialism or no socialism. Socialist destiny is at hand for machine production. In this machine age, with its mass-production technique constantly and miraculously accelerating production, the _ issue is democratic socialism or socialism dictated. _ . • • I believe there is no alternative to socialism, pnd soon we must either socialise or destroy the Vnachme, and there is no likelihood of the machine being destroyed." Such is Mr. Lee's "credo as published in London for the world to read. The world will read, also, and perhaps form misconceptions concerning the forebears of New Zealand by the account Mr. Lee gives of them. , "One hundred years ago," he wntes, "ships were* coming down out of the north to engage in whaling and sealing:, and beautiful clippers were com- ' ingdown the Pacific to get tall kauri spars. Runaway convicts and runaway sailors were- so numerous at one of his ports of call as to provoke Charles Darwin into recording that that P°rt seemed to harbour the scum of the earth. Settlers arrived later, hut the / discovery of gold brought furtheij hoards of adventurers and vagabonds, arid, although a host of these departed with' the collapse of the gold boom, they. must have left their mark on Zealand character. For years New Zealand has been at too great pains to suggest respectable origins, whereas even the missionaries were rare land jobbers."

Majority Depend on State • After this, no one should resent Mr. Lee's later reference to "the legal P ro " fession. -which is no more crooked than any other group of people in New- Zca- ' land society." If New* Zealanders are ready to accept this account of the stock from which thev sprang, they may not demur at Mr. Lee's next theme. He finds that "socialism in New Zealand is extended into production, into distribution and exchange, into health . and education, is already the major Part of New Zealand's material way life. The population sustained by socialist activity is a complete majority all the people." • After demonstrating this proposition to, his own satisfaction, Mr. Leo triumphantly concludes: —"New Zealand is on the high road to socialism • ■ • New 'Zealand has more socialism / democratically installed than any democracy on earth . . . socialism must Continue tp huild in New Zealand or Aetr Zealand lies in ruins." • .Mr. Lee has already published a hook Swing his views on socialistic finance, currency, .and credit, and his further references to tho . subject, although onunotis for the future, may be passed ?} er . Rut the part played \v the T°k .credit movement in putting . hour in jlower may prove painfully mtoresting. to many people. Douglas Credit and Votes

jhe Douglas Credit Party was also, that time (in HWi), interesting the; People of New Zealand in credit and irroney reform. Douglas Credit agitasweeping New Zealand like a reWv? reviva '-" Mr. Lee recalls, las n no ..one could outline any Dougji . Credit constructive proposals, "My everyone was able to tinder-

stand and agree with the Douglas Credit movement's criticism of the orthodox financial machine. The very difficulty of understanding Douglas and his algebraic symbols and theorems rendered Conservatives more willing to listen to the Douglas niovement's critical and able analysis of capitalist finance. Thousands who because of past political hostility found the Labour Party altogether too vulgar an organisation. rallied to the Douglas Credit movement, which in a few months reached extraordinary proportions and sold a huge amount of literature. "These thousands, after being won to ii position of scepticism in regard to capitalist finance, coultl not rest in the Douglas movement-, but started to study the practical and positive proposals of the New Zealand Labour Party. And although the Douglas Credit movement withered nwav almost as rapidly as it had blossomed, nevertheless it can be said finally that the Douglas Credit movement's activities were the cori'idor through which tens of thousands of voters entered The Labour Party. Douglas Credit agitation must have a big share of the credit, for any Labour success, although the Labour Party is thoroughly socialist in its policy." Hut tho Douglas Credit Party would scarcely approve Mr. Lee's ideas of financing, Boiled down, those amount to issuing paper to pay off old loans and finance new works. Anyone who tried to export their capital to save what value was left in their New Zealand pounds would be estopped, Mr. lx?e points out. by the Government's control of exchange. Nor does Mr. Lee baulk when it comes to the people's savings. He says: "Tho old political bogey associated with Post Office Savings Banks—that the financial policy of a Labour Government- would provoke a run on such institutions—is no longer existent, the Labour Government being now able to order the Reserve Bank of New Zealand to supply currency to the value of existing deposits on demand." Paper Notes for Savings

But Mr. lyco does not state how much value there would be in the £60,000,000 of paper issued in such a case. The fact is he hates capital and would destroy it. Tho people's savings are the most awkward repositories of capital to deal with in a democracy, but Mr. Lee says frankly what he would do and does not stop to reckon the ruinous result.

This dilemma crops up with another £60,000,000, the funds controlled by the Public Trust. Again Mr. Lee is not dismayed and indeed finds the situation humorous, a humour that may not be appreciated bv the widows and orphans dependent on the Public Trust. He saya:—

"To-day, the socialist Minister in charge of the Public Trust is the largest capitalist in New Zealand, responsible for the careful control of over £60,000,000, When the Minister is Minister of Finance, and as at present a socialist Minister of Finance, he is caught between a variety of loyalties. -As'Trustee he is interested in maintaining a high rate of interest for his beneficiaries; as Minister of Finance in control of a Central Reserve Bank and possessed of unlimited financial powers, he should be interested in bringing about a progressive reduction in inteiv est payments on funds required by the State and municipalities, for all the people are his beneficiaries." Finance Minister's Dilemma Elaborating; the dilemma, Mr. Lee goes on:—"The liquid funds and realisable securities at credit of estates and accounts to-day amount to £06,500,511, and on this amount the Minister has the duty of earning the h'ighest rate of interest while giving effect to socialist monetary policy. If not careful, a socialists Minister might end like the Lady of Riga. For. here is surely the greatest contradiction in politics—a socialist Finance Minister who is New Zealand's greatest capitalist. . . . Can a socialist trustee conserve large-scale capitalism in perpetuity." Before confiding in Mr. Lee and his Labour Party further, a great many people would wish to hear the answer. Mr. Lee offers to substitute "social security" for the definite security enjoyed by those looking to the Public Trust. "With national superannuation for sickness, disability and age assured out of New Zealand's annual production by making such services a charge on our annual accounts, the necessity for a deal of the investment will go, for much of the funds are superannuation balances. The Minister will cease to be so much concerned about maintaining the highest rate of interest for £30,000.000 of funds. Such private accumulation and socialism are contraries. In a world where widow sind orphan are assured of better and more regular provision, capital sums in the form of finance capital may be liquid'ated more rapidly to aid the beneficiaries instead of being saved more carefully to invest. Inheritance a Dying System

"To-day, the Public Trustee guarantees the principal. To-morrow a really socialist. Trustee will guarantee income, not to a few widows, a few orphans, a few weaklings, but to all through superannuation, invalidity and old age pensions, etc. Large-scale private accumulation and private investment. bequeathed in trust to the unfit descendant of a capitalist entrepreneur, are a concomitant of a dying system." So Mr. Lee cheerfully contemplates the end of the system of inheritance, of that combination of providence and duty and affection that causes husbands to provide wives against widowhood and fathers ,to protect children against orphanhood. Mr. Lee would consign all "widows and orphans to the tender mercies of an impersonal State and a materialistic socialism; they would have nothing to call their own. What Mr. Lee would do with the farmers, the industrialists, the workers, the church, the coal mines, the banks, the insurance companies, housing, radio, land; how he would reform the outlook of trades union secretaries—all this and much more can be found in the book. According to the disposition of the reader, the book can be regarded as an inspiration or as a warning. At a moment when a fresh tenure of office is being sought by the Labour Party, in which Mr. Lee counts as a major influence and driving force, it can also bo taken as an instructive guide indicating. in Mr. Lee's words, "from whence and to whither New Zealand is moving." "Socialism in New Zealand," by John A. Lee, M.P. (T. Werner Lanrje, London.)