THE OTAGO DAILY TIMES SATURDAY, AUGUST 23, 1910. THE LIBERALS' MANIFESTO.

Otago Daily Times, Issue 17711, 23 August 1919, Page 8

THE OTAGO DAILY TIMES SATURDAY, AUGUST 23, 1910. THE LIBERALS' MANIFESTO.

Sir Joseph Ward has taken the wind out of Mr Masscy's sails in having been enabled, by the indulgence of the United Press Association, to issue what is in fact an electioneering manifesto along with the intimation of his resignation from the Government. It is probable that tho balance of advantage in party politics lies ordinarily with the leader who has tho opportunity of examining his adversary's programme before he submits his own to the public. He detects the weak points in that programme; he determines to avoid those weaknesses in the programme which ho himself sits down to preparo; to the extent to which he believes he can legitimately go, he deliberately outbids his opponent in the respects in which his policy is likely to appeal to the popular imagination; and he casts about for proposals which have not been included in the opponent's programme and which may, in his belief," be judiciously exploited. It ia of this form of competition for the support of the electors that the business of politics is made up.' And as the last bidder is usually the highest bidder an advantage remains with him that ia certainly not to be ignored, unless, indeed, the original bid is one upon which it is difficult to make any advance at all. Sir' Joseph Ward has accepted the risk attached te placing his programme first before the community. But he has taken the precaution to explore pretty thoroughly the whole political field. Such ground as has not been covered by him is negligible in extent. Probably it is barren also into the bargain. It is certainly a very bold nnd ambitions, as well as comprehensive, programme that has been outlined by him. Not only has he stolen a march on Mr Massey in suddenly, unexpectedly submitting his policy to the public, but he has also appropriated a not insignificant proportion of the "thunder" exclusively employed by the Labour Party in the past. It may be surmised that it is hoped by him that the effect of the announcement of his policy may be to bring about a revival of the Liberal-Labour alliance of nearly thirty years ago. The most striking feature of Sir Joseph Ward's programme is the wide acceptance that is accorded in it to the principle of nationalisation of finance, trade, and industry. The scheme of nationalisation embraces the establishment of a State bank, the acquisition by the State of the coal-mines of tho dominion, the establishment of a State fleet of coal steamers to be employed in cooperation with the State coal-mines, the acquisition by the State of the working flourmills of the dominion, and the nationalisation of the ferry steamer service between the two islands. If carried into effect this programme will represent an instalment of nationalisation which should go far to satisfy the immediate aspirations of the State Socialists in the community. It should provide, also, an exceedingly interesting illustration of the practical operation of a scheme of nationalisation. Sir Joseph Ward makes the claim that the extension of the State activities which is proposed by him will entail no loss to the community, as the whole of the enterprises will be revenue-producing and will more than pay their way. Upon the balance they may do so, but it is to be observed that he suggests that there should be no attempt on the part of the State to make any profit out of the flour-milling industry, and it may be reasonably doubted whether the nationalisation of the coal-mines, good, bad, and indifferent—for the proposal is that the whole of the mines shall be nationalised—will result at onoe in the price of the commodity being reduced and in a profit being yielded to the community. The other proposals for the extension of the activities of the State may be more hopefully regarded. In principle the nationalisation of the ferry service is not exceptionable. The ferry constitutes a link between tho State lines of railway in the two islands, and there is a great deal to be said in favour of the view that this link should be controlled and owned by the State. Moreover, if a policy of nationalisation of tho coal-mines bo accepted, the cTcation of a State-owned fleet of steam colliers may reasonably be regarded as a corollary to this policy. Immensely more important and certainly more controversial than either of these two proposals is that for the establislrment of a State bank. Sir Joseph Ward has consistently and strongly opposed in the past ( the suggestions that have been put forward by visionaries and amateur economists for an incursion by the State into the arena of banking. His own proposal is very different from these. It is that the State bank should compete on equal terms—or on terms as equal as the possession by it of the State banking account would permit with the other banking institutions in the manner in which tho State Insurance Departments compete with the public companies that are engaged in the business of insurance in tho dominion. It is obviously contemplated by him that the State should buy cut tho interests of the ordinary shareholders in the Bank of New Zealand. If this purchase cannot be effected, his view is that the State should establish a bank of its own which should be subject ■"» jhe same reqtrireEionfcs of

law as hare to be observed by the other banks of issue. The subject is ono that is surrounded with difficulties, not tho least of which would be that of safeguarding the management of the bank against tho exorciso of political influence. Sir Joseph Ward's proposal is, however, undoubtedly free from some of tho objections that have been soundly raised against tho crude schemes with which wo have made some acquaintance in past years. Tho other features of Sir Joseph Ward s programme include several of great importance affecting financial policy, tho occupation of the land, and the settlement of industrial troubles as well as proposals which touch the life of tho community at practically ovory point. At the present time wo can glance cursorily only at tho more interesting of them. A detailed consideration of them is not immediately called for and may conveniently bo postponed. Sir Joseph Ward's complete conversion to the principle of domostic borrowing, to 1 which he was opposed a few years ago, is to be welcomed. His proposals, which contemplate a somewhat prodigal ex j penditure in various directions, makt> it abundantly clear that all his old fears with reference to the ability of tbo dominion to provide funds both for tho requirements of the Government and for the development of private industry and the prosecution of private enterprise have been definitely dissipated. A policy of self-reliance in finance is highly desirable in any circumstances. It has become absolutely necessary at the present time. It seems likely, indeed, that whoever may be tho Minister of Finance in the next few years will havo no alternative to recourse to tho local market for such funds as may have to be raised for State purposes. It is to be observed with satisfaction, also, that Sir Joseph Ward is opposed to any suggestion that the accumulated balances of the general revenue account during the war years should be regarded as a windfall to be applied to any general purposes for which money in large quantities may havo to be providecl. His own proposal is that these balances, aggregating over £15,000,000, should be transferred to a. War Indebtedness Sinking Fund. It is a sound view at anyrate that they should be held in reserve as a contribution towards tho discharge of that special indebtedness. One of the mistakes of the National Government was that it relied too greatly upon borrowed moneys for the payment of the cost of the war. Those balances should now bo utilised as a contribution from revenue to that object, whether they be treated as the nucleus of a War Indebtedness Sinking Fund or not. Sir Joseph Ward scorns to have abandoned the view, which' we did not share with him, that an early reduction in taxation is practicable. Instead, he proposes that the incidence of taxation should be revised, and there is no lack of force in what he says on this point. It is not easy to reconcile hig advocacy of an extension of the system of preferential tariif with the support he gives to the principle of increased protection for secondary industries. This is a subject, however, upon which detailed proposals must be submitted before comment may satisfactorily bo offered. Upon the industrial problems which have lately been engaging public attention to a large extent Sir Joseph Ward makes no very original observations, but his acceptance of the principle of the Whitley recommendations at Home harmonises with a view to which' increasing support is being reasonably given by thoughtful people.