THIRD YEAR OF DEPRESSION

Otago Daily Times, Issue 21988, 24 June 1933, Page 12

THIRD YEAR OF DEPRESSION

DR LISTON’S VIEWS ? ~ '• ' "i „ “POLICY OP DRIFT AND INACTION.” (Pee United Peesb Association.) AUCKLAND, June 23. “As one closely in touch with the needs and ever-growing hardships of a large section of the ordinary people, I feel that your Worship has rendered a distinct service to the country,” says Dr Liston, Roman Catholic Bishop of Auckland, in a letter to the Mayor (Mr Hutchison), congratulating him on raising by means of the recent deputation to Mr Coates, “ a question of first-rate importance.” “We have reached the third year of the depression, the exhaustion point of deflation,” says Dr Liston. “Numerous expedients have been tried, but the depression is not ending itself. Hitherto the people have shown an endurance and courage beyond praise, and are ready, if need be,' for greater sacrifices. But to-day a spirit of despondency prevails almost .everywhere. your Worship has asked the country to face these realities and boldly try. another policy. The issue is a clear one.”

Discussing the policy of the Government, Dr Liston asks why it should be necessary to balance the Budget year by year. If it is dangerous to leave the Budget unbalanced when prices are rising, it it not equally dangerous to seek at all costs to balance it when prices are falling? To balance the Budget sounds well, but the requirements of a country vary with peace and war booms and depressions, and the Budget should vary with them.

He agrees in these circumstances that " we may well go in for a policy of borrowing, sound borrowing, justified by the natural resources of the country and the spirit of the people. If we are going to help ourselves to the beginnings of economic recovery, and not be content to wait and wait on the outside world, it seems to me that the only means of recreating the purchasing power of the people is through a reasonably large extension of our national credit for useful public works, and especially for land development': Parliament can do this, as your Worship has proposed, by the issue of bonds, and there is sufficient money in the country itself to buy these bonds. There arc, no doubt,, disadvantages in such a large issue of bonds, but these arc, it seems to many of ns in touch with the lives of the people, trifling in comparison with the evil results of a policy of drift and inaction.”