FINANCING WAR

New Zealand Herald, Volume LXXVI, Issue 23486, 25 October 1939, Page 11

FINANCING WAR

" PAY AS WE GO" CREATION OF DEBT OPPOSED A STATE TRADING BANK ADVOCACY OF MR. J. A. LEE Support for the carrying on of NewZealand's part in the war without tho creation of a war debt and strong advocacy of the establishment of a State trading bank, were the outstanding points in an address given by Mr. J. A. Lee, M.P. for Grey Lynn, at the Grey Lynn Library Hall last night, when he dealt with the work of the recent session of Parliament. The hall was packed and a largo number of people outside listened to the address relayed through a loudspeaker. Mr. N. V. Douglas presided, and a;&sng a group of supporters on the platform were three fellow members of the Houso of Representatives, Messrs. W. T. Anderton, A. S. Richards and A. G. Osborne. ; -

The two most important tasks ahead of the nation, said Mr. Lee, were the defeat of Hitler and Fascism and the destruction of the. , conditions which made for Fascism. It was useless tinkering with the symptoms, whils leaving tho causes. The speaker expressed his views on the need for a new and different monetary system, and said that he stood for the prosecution of the war without the country piling up a debt. In the last war, whrle t*ie men: marched and fought great war debts- were built up, and when the men returned they found that they had thrust on their shoulders the task of paying for that war. He felt that in this war the country must pay as it went. Just how this was to be done could be determined as they went along.

Recent Loan Terms . Mr. Lee devoted some time ?o an - attack on the present banking system, o:a the lines of several of his speeches in the. House of Representatives during the recent session, and said that the debt system of finance required more and more an annual' tribute on . the Dominion's resources, not for the improvement of the country, hut to meet debt services, which absorbed £21,000,000 annually, This simply could not go on. He would not say that New Zealand should repudiate, but they should end this insanity and start off on a new system. Ho was sure that the country would meet its .commitments, but it would be physically impossible to repay at the same rate as arranged for the recent London loan. While the Labour-Party had a creditable record, Mrl Lee said he would not be satisfied until* they had a trading hank. He expressed the belief that if they did not own and control a trading bank before the Labour Party faced the electors again thev would, be guilty of a gross betrayal of their - pledges to the people. The barkers would do as good a job as civil servants as they were doing to-day, for be believed that the State could use these people. x Credit and Industries While defending exchange control and import regulation. Mi. Lee expressed the opinion "3th at a lot of :the orders now going forward would be delayed by the war it was .possible that even if !New Zealand had overseas funds it would not get the goods required owing to Great Britain's inability to provide them. This made it necessary to develop local industries „ and he believed that by the intelligent use of credit resources New Zealand could build up industries and use men and materials not now fully employed. So long as the people of New Zealand could produce goods and services, and they could produce them, there would - be no need for anyone to starve 1 because overseas prices fell. - • Reverting to the cost of prosecuting New Zealand's part in the war, which, he said, unless there was a sudden collapse, might last for six or seven years, . Mr. Lee said it was obvious that if men were sent away or New Zealand maintained an air force overseas, we could not send the essentials of their military equipment and would have to find the funds elsewhere. He did not object to that, but lie did object to the raising of a debt in the Dominion to meet the cost of war activity. At the conclusion of the address, Mr. Lee was accorded a vote of thanks and V confidence, only one voice, that of a woman, being raised in opposition.