"PAPER CHAINS"

Otago Daily Times, Issue 23883, 10 August 1939, Page 12

"PAPER CHAINS"

DOMINION'S BONDED DEBT FREEING PROCESS URGED ALTERNATIVE TO EASIER TERMS MR LEE'S CHALLENGING SPEECH <From Our Parliamentary Reporter' WELLINGTON, Aug. 9. "Unless we get a low rate of interest in Great Britain with all our loans refunded on a long-term amortisation plan, no Government in New Zealand could meet the terms that have been imposed," said Mr J. A. Lee (Govt., Grey Lynn) when referring during the Financial debate in the House of Representatives to-night to the terms fixed for the £ 16,000,000 cash and conversion loan. " New Zealand must be freed from the morass of debt in which it is situated," Mr Lee said. "The problem has to be faced some time or other and I think I have enough love for this country to believe that the right moment for the challenge is now. I believe that if members of the Labour Party adhere to their principles their careers will look after themselves." Mr S. G. Holland (Opposition, Christchurch North): Why did they borrow £9,000,000 recently. "Financial Gangsterdom" Mr Lee: That was forced on us, because certain people in our party with the best intentions in the world did not appreciate the length to which financial gangsterdom would go to defeat the Government. They did not take steps to check the raid until the money had been taken from New Zealand's account that was urgently necessary for defence 'and for this year's imports. "The Montagu Normans hate Labour Government so much that they want to keep New Zealand anaemic—to reduce the number of red corpuscles in the body politic," Mr Lee added. "And let me inform members of the Opposition that there have been many expressions of approval from the Government front benches during my speech tonight." Mr Holland: Imagination. Like the boys with their noses pressed against the window of the tart shop Mr Lee said that members of the Opposition were only interested in any possible differences of opinion in the Government ranks, because they thought they might inherit the tart shop. A Day of Liberation "If our nation is to be in paper chains—the chains of bonded debt —I suggest to the Montagu Normans," Mr Lee added, " that the time will come when some political Vulcans will arise and liberate New Zealand by setting fire to those paper chains. And New Zealand will support those Vulcans. "I believe in living up to the letter of our obligations, except where those obligations are unconscionable," Mr Lee concluded. "I want to suggest that we have reached the limit of the form of finance represented by bonded debt. We are increasing taxation to pay interest on debt, not to build up social services or industry. While we build on the foundation of the old-fash-ioned debt finance system, we build on sand, but when we make finance the servant of industry, and not the master, we build on a rock."