BORROWING AND EXTRAVAGANCE

Otago Daily Times, Issue 23882, 9 August 1939, Page 5

BORROWING AND EXTRAVAGANCE

TO THE EDITOR Sir, —In Thursday's issue of your paper appeared an address from the pen of Mr W Downie Stewart. though thousands of people in New Zealand- are ever ready and eager to read or listen to statements from Mr Stewart, I for one humbly beg to offer my advice to the Dunedin Chamber of Commerce and to tell it that if it desires' to impress the average working man and woman in New Zealand 5y statements coming through its organisation, then it should (if criticising the Government on finance) get a person whose record of, spending and borrowing, while in charge of the public purse, can bear the light of scrutiny and still be on the right side Mr Stewart's record does not face up to Mr Nash's record, riot by millions of pounds, and the years Mr. Stewart was in charge were the best three consecutive years for export prices and climatic conditions that New Zealand has ever experienced. Mr Stewart accuses the Labour Government of extravagance. He also said: "During my term of office I set out to reduce substantially the volume of overseas borrowing, and this was highly unpopular." We will see later on how he succeeded in his overseas debt reduction or reduced borrowing plan. Later in his address he says: "Mr Savage had stated some time ago that if any cutting down had to be done, then some other Government must do it. Does it mean that his party contains only fair weather sailors and that they will riot face a storm, even if they create it. I cannot regard it as a courageous policy to say, ' We will tax,..' borrow and spend to the limit, and when we have exhausted all resources someone else can come along and do the unpopular work.'" What did happen during Mr Stewart's term of office, say. from 1925 to 1928? Exports realised an average of £48.000,000 per year sterling values against £46,500,000 sterling values in 1938 to 1939 inclusive: Mr Stewart increased the overseas debt (Great Britain and Australia) by £20,000,000. hence he had an export cheque of £54,500,000 per annum, against the Labour Government's £46,500,000 and, ac'ording to the Budget stateriient of August 1, 1939, the overseas debt has been reduced by £3,000,000 and has so reduced our exports by. that amount.Let me say here that I cannot find any three-year period, either since or before the ,Great War, when the overseas debt was increased to such-an extent as it was during the period when Mr Stewart was Minister of .Finance. So much for his tapering-off borrowing overseas. In 1928 the, Coates-Stewart Government was defeated, and although then in Opposition K itwasinthe words of Mr H. E. Holland " Only a sh?m fight, and the sooner they were in the one camp the better for the country." The Ward-Forbes - Party carried on and borrowed'overseas; but riot to the extent of Mr Stewart's party. In 1931 a coalition took place and in December of that year, before half a season of low prices had been experienced, and after 10 years of. remarkably high prices; for exports and after colossal, borrowing overseas, there was danger of default with overseas payments and exchange and exports were licensed until their policy of deflation had built up the overseas reserves. I want to know where all this borrowed money and huge export cheques had gone. Reserves were depleted in six riibnths and if that was not extravagance then you have got to show me. ; I now come to the part of Mr Stewart's address referring to courage. If the Governinent does a certain thing then it will be lacking in courage. Well, well! Is this the same Mr Stewart who borrowed and spent and along with his Coalitionists increased the overseas debt by £41,000,000 from 1925 to 1933, and in 1933, when the ship of State was rocking very badly, he (in vulgar parlance) "threw in the towel" and walked out on his,Cabinet fellows and left them to do the unpopular thing that he talks about? One wonders after looking at the facts why he would mention the word courage in the political sense. There is just one other point in the address. "If it is deflationary to reduce costs, surely it is more deflationary and unjust to abolish a man's livelihood." I admit it is hard for any man to lose his job, whether he be an importer or a navvy, but Mr Stewart is showing concern for a few hundred to whom the import control may be injurious. I do not remember any protest coming from Mr Stewart when thousands of men, women, youths and girls lost their jobs and their livelihood was definitely linked up with their .lobs. There are many more points in his address that could be put in an entirely different, light to your readers and more fairly than he puts them, too, and the arguments would certainly not be in favour of Mr Stewart. May I say that if any reader doubts mv figures let him look at page 445 of Se Official Year Book, 1933 for the increase in the overseas debt, at page 205 of the Year Book, 1933 for the value of imports and exports, and at page 209 of the same year for the regulation of the exchange pool. Stted in December. 1931.-1 am etc. Awamunga, Aug. 5. C. H. Taylor.