DEBT SYSTEM

Otago Daily Times, Issue 23896, 25 August 1939, Page 8

DEBT SYSTEM

LABOUR ATTACKS IS CRISIS DESIRED? WARNING NOTE SOUNDED DEFENCE OF PAST BORROWING (From Our Parliamentary Reporter) WELLINGTON, Aug. 2C “It is clear that a large section of the Labour members look forward to a debt crisis that will give them the conditions and opportunities they are looking for,” said the Leader of the Opposition (Mr Adam Hamilton), opening the discussion on the Finance Bill in the House of Representatives to-day. “They want to bring about a collap.se of the interest-paying system. At least that is the conclusion w» are entitled to draw from their statements,” Mr Hamilton said. “ I cannot state too emphatically that a wrong view of the debt question might shake the whole foundation of the Dominion’s economy and cause untold suffering. Our obligations are just obligations and it is fair that we should talk of them as such. If not, we are not entitled to ask for more, as we have recently done.” Need for Confidence It was more than ever essential to-day that those in authority should show steadiness and solidity to inspire the confidence of the people, Mr'Hamilton said. Nothing Was so certain to shake the confidence and morals of the people as irresponsible and baseless attacks on the system of finance on which the Dominion had been so successfully established. The man • and woriian in the Street should not be misled by cunning and ill-founded attacks on what the attackers called the debt system. If there had been no financial assistance from England for'major development, Mr Hamilton said, New Zealand could not now enjoy the comforts and !. efficiency of modern life. , The burden .of debt for development had been taken, on gladly by the men and women who built New Zealand, and there, should be nothing but thanks for thrifty people in the Motherland who made it possible .for New Zealand to borrow, money and have a. coat far in advance of the cloth then available. What could be more reasonable than, that we were able to borrow money on the understanding that we would pay it back; or at least pay the rent of it. Provision for Repayment Provision was made by previous Administrations through sinking funds for the wiping off of debt in 60 years, Mr Hamilton said. Each Joan since 1925 had to carry a 60 years’ sinking fund provision;: and to 1939 nearly £50,000,000 of the National Debt had so been redeemed. That amount was the equivalent of New Zealand’s total borrowings up to 1900, and what was the use; therefore, of talking about not having paid for such items as wars? ' ' / - -

“ For the. country to-enjoy all the amenities . that, our borrowing iroitn the Motherland has made. possible and now to allow an agitation to be started against debt obligation is, to put it mildly, unconscionable,Mr Hamilton concluded/