LESSONS OF PAST

Otago Daily Times, Issue 23648, 4 November 1938, Page 6

LESSONS OF PAST

WHAT CAPITALISM HAS DONE SUGGESTION TO GOVERNMENT ENCOURAGEMENT. OF ENTERPRISE (Special to Dau/x Times) AUCKLAND, Nov. 3. “There exists in some minds the conviction that what are termed ‘individualism ’ and ‘ capitalism ’ are unqualified evils," said Mr A. G. Lunn, president of the Associated Chambers of Commerce, in addressing the annual conference of that body, which was opened to-day. A glance at some of the facts in the history of the last few hundred years will illustrate the fallaciousness of this idea,” he added. “ In the century before the beginning of what is usually considered to be the capitalist era—losl to 1751—the population of Great Britain rose from 6.378.000 to 7,392,000 an increase of 1.014.000. In the next century, while capitalism was getting on its legs, the figure rose to 21,185,000, an increase of 13.793.000, and in the following 60 years—lßsl to 1911—-it rose by 19.350.000 to 40.535.000. This is not a bad record of development under a system of individualism and capitalism. Moreover, according to Sir Josiah Stamp's assertion, not only was the real wealth per head of the population of Great Britain roughly multi■plied by four during the century before the War, but this increase was evenly distributed through all classes of the population. “ Capita! Has Its Value ” " Capital,” said Mr Ramsay MacDonald, the first Socialist Prime Minister of England, “ has. its value—a simple fact which means that under the freest economic conditions interest will be paid. It may be interest of 5 per cent, per annum, it may be of one-tenth per cent., but the utility of capital in production will always have an appreciable value which the labourer who uses it will pay without suffering exploitation or injustice. Remember that the wage-earners’ wages are a first charge on the gross profits of industry, and are paid week by week “ Sir Josiah Stamp (now Baron Stamp), in his 'Wealth and Taxation Capacity,’ states that we are all just about four times as well off as were our forefathers a hundred years ago, and one has only to observe our smartly-dressed girls on their way to and from business to realise the truth of this assertion. Apparently we are benefiting not only by the recent development of the technique of science and industry, but also by a fairer distribution of the wealth produced. “ In our own country during the last hundred years we have developed from a state of semi-barbarism to a state of civilised comfort exceeding the standard of living of most, if not all, European countries; and it is important to consider whether New Zealand, which depends on its exports for its existence, can maintain higher standards of living and public expenditure, regardless of its competitors, without having to pay the price in increased unemployment. Spirit of the Pioneers “What has contributed to and maintained this steady development of our Paradise of the Pacific but the energy initiative, determination, and adventurous spirit of our pioneers, who, in New Zealand’s early .stages of development, faced difficulties, dangers and real hardships that to-day are forgotten? This rugged individualism, backed by the accumulated wealth of our British forbears in the Motherland, and freely lent to New Zealand by the British capitalist, has, in a single century, brought the country (with the minimum of interference by its Governments) to a pitch of prosperity unimagined by our early settlers. “It is, therefore, proper to suggest to our Government,” Mr Lunn said, “that, before making any drastic changes in our system, it should consider the wisdom of confining its activities to the traditional functions of Government, and that it should take all possible steps to encourage the continued freedom and initiative and enterprise of our citizens in the development of the country on the lines which have so successfully operated during the past. Rights of Appeal “There apparently exists to-day a determination in the Cabinet to curtail the rights of our citizens by robbing them of their powen of appeal to the protection of our law courts—rights which have been sternly fought for in the early years of our history and handed down to us from many generations. The tendency to make a Minister the final arbiter in a wide range of matters is unwise and unfair, and must, if unchecked, tend to a spirit of dictatorship. This must be opposed continually until we get redress. Defence "Members of the executive of the Associated Chambers of Commerce,” Mr Lunn concluded, “ were recently received by the Prime Minister (Mr M. J. Savage), the Minister of Finance (Mr W, Nash), and the Minister of Industries and Commerce (Mr D. G Sullivan) The attention of the Ministers was drawn, among other matters to the uneasiness existing in the minds of many New ZealandersTegarding the inadequacy of the steps being taken for the defence of the country Ministers were assured that any_ efficient means taken by the authorities to increase the personnel of our defence forces would have the full support of the commercial community INCIDENCE OF TAXATION LAND AND COMPANY IMPOSTS REMOVAL OF INJUSTICES SOUGHT (Per United Press Association) AUCKLAND, Nov. 3. A motion again drawing attention to the unfair incidence of the land tax and urging the abolition of the principle of graduation was moved by Mr T. W. Gibbs (Canterbury) at the conference of the Associated Chambers of Commerce to-day. Mr Gibbs said that in the last 40 years there never had been such a time of difficulty in disposing of land and thus escaping unjust burdens. The figures were too steep, and in the lower grades they were steeper than they had ever been in the history of the country. The motion was seconded by Mr N. B. Spencer (Auckland), who said the graduated land tax was essentially a penal tax and had now entirely outlived its usefulness. , Mr M. H. Oram (Palmerston North) moved that the following words be added to the motion:—“ Or in the alternative the conference urges that full exemption should be allowed in respect of mortgages, that the special allowances previously in force when the graduated land tax operated of 5 per cent, of the unimproved value of the land off the assessable income in computing the tax should be reinstated, and that other anomalies should be immediately removed.” The mover agreed to accept the amendment as part of the motion, and the remit was carried. Company Tax Inequalities Inequalities in company income tax were quoted by Mr D. G. O’Toole (Wanganui), who moved that the present method of taxing companies as if they were individuals was wrong in principle, and urged that the system be equitably readjusted. The opinion that the principle of the taxation was fair was expressed by Mr C. L. Calvert (Dunedin). Mr A. M. Seaman (Auckland) moved the addition of the words “along the lines of the recommendations by the recent taxation commissions.”

Mr Gibbs moved as a further amendcent the omission of the words “Is wrong in principle," and the addition cl the words “has been carried to a limit which threatens the taxable capacity and urges that the system be equitably readjusted on the lines suggested by the recent taxation commissions.” The amendment was accepted, and the motion was carried in that form. Long-standing Injustices Further complaints of injustices in the incidence of taxation were made by Mr P. O. Smellie (Dunedin), who moved a remit drawing attention to the existence of and the tendency to increase the unjust methods of raising taxation, calling upon the Government to remove this blot and asking that a system of taxation commissioners be set up, similar to the Eng lish system, to give the taxpayer the right of appeal from the department’s rulings without having recourse to litigation, Mr Smellie said this was not an attack on high taxation, nor on the present Government. These injustices had been in the system for many years. An amendment favouring the setting up of a special taxation vigilance committee. was added, and the motion was carried. REPRESENTATIVE GATHERING IMPORTANCE OF CONFERENCE STRESSED (Per United Press Association) AUCKLAND, Nov. 3. There were 50 delegates present from various parts of New Zealand as well as visiting representatives of trade organisations. After the opening address the wives jf the delegates were entertained by the Auckland Chamber at morning tea. Apologies were received from the Prime Minister (Mr Savage), from the Associated Chambers of Australia, and from various commercial organisations. Welcoming the delegates, Mr A Ely. president of the Auckland Chamber, said there had never been a more important conference than the present one so far as industrial relations were concerned. The conference would be presenting to the public the views of a representative body of men.