The Otago Witness. WITH WHICH IS INCURPORATED THE SOUTHERN MERCURY (TUESDAY, AUGUST 25, 1931.) THE WEEK.

Otago Witness, Issue 4041, 25 August 1931, Page 43

The Otago Witness. WITH WHICH IS INCURPORATED THE SOUTHERN MERCURY (TUESDAY, AUGUST 25, 1931.) THE WEEK.

•'Nunqnam allud natura, allud sapientia dixit-” Juvbnau

"Good nature and good sense must ever join.’*— Pat'H.

The All-party Committee.

Friday brought more excitement, move-

ment, and. animation to the House of Representatives than even the Budget was able to introduce.

The refusal of the Reform Party to consider the fusion proposals apparently constituted not the slamming of the door, but the putting of it upon a chain, and now, through the chink, Mr Coates has delivered his suggestion that a committee representative of all parties should decide the remedial steps to be taken to adjust the national situation. This proposal has the advantage that it gives the Labour Party small chance of assuming its usual aloof role and crying:— Rightly to be great Is—not to stir without great argument, But greatly to find quarrel in a straw . . .

It is very difficult, however, to see in what way the plan is an improvement upon fusion. The result of it is to create a committee with one purpose, perhaps,

ibut as many suggestions for securing that purpose as there are noses in the House. Instead of a Cabinet composed of the best political men in the Dominion, we are offered a committee representing every shade of personal and party opinion. And to what end? Perhaps the general election will be postponed and a national government formed. That might be all to the good. But, on the other hand, there is no guarantee that the committee will ever get near an agreement, and it is certain that if it does there will be an undignified scrambling after office. The part of Mr Coates’s' proposals that carries most appeal is that urging that assistance should be obtained from financial and other experts. We have stated before, and there can be no harm in repeating, that Parliament is not competent to settle the affairs of the country in time of crisis if it ignores the advice of financiers and economists.

The British Crisis.

The British Government has been slow

to admit the imperative need for a balancing of revenue and expenditure.

Even in his last Budget Mr Snowden did not indicate the recognition of the Government, of the serious results which are inevitable if debts are allowed to continue to pile up. But now, as if the reports of the Economy Committee had altered the situation overnight, instead of merely stating plainly what must have been evident, the Government is awakening to the fact that Great Britain must be prepared to deal with what amounts to a financial crisis. At the time of writing the measures which the British Cabinet appears to favour for balancing the Budget are but vaguely defined. Salary reductions apparently are favoured, and possibly a temporary tariff, but it is deplorable to find the Government still shirking the obvious facts and pinning its faith on taxation measures of one sort or another. The expenditure on social services in Great Britain is one of the greatest deadweight burdens the State has to bear, the unemployment “ insurance ” scheme alone demanding millions a year from the Exchequer and giving absolutely no return. Financial advisers are unanimous in stating that the unemployment benefits—the pernicious “ dole ” system—must be reduced to a third or a quarter of the present outlay, but the Government steadfastly ignores the advice. This system, more than any other factor, must be accounted as the greatest evil in Great Britain to-day, both in its financial aspect and its effect upon the working classes, and it is impossible to conceive of any real economy scheme which does not reduce unemployment benefits.

The War Debts Problem.

The American “ war debts holiday ”

offer, which has been accepted by the European Powers, has served an

even better purpose than giving relief for a year in respect of the payment of war loan obligations. That is an important step, but it has opened the way to a consideration of the whole question of war. debts in their effect upon world economic conditions, and at last financiers have been emboldened to give their honest views on this subject. The opinion held in some authoritative circles unquestionably is that the scaling down or even cancellation of war debts is necessary, and the voicing of this belief by a committee of American bankers, by financial leaders in Great Britain, and, by implication, by the committee of international experts which has been considering the plight of Germany, is most significant. It constitutes an admission, too long withheld, that the huge burden of war debts and reparations is depressing not only the countries that are paying, but the entire trade of the world. America, the greatest creditor, has come to realise that accumulations of idle gold are of no use if there is no trade with the outside world. The question is, of course, very complicated, and adjustments, if and when they are seriously contemplated, will prove difficult, especially in view of the attitude that France may be expected to take. But the ice has now been broken, and the hope may be expressed that the stultifying effect of war debts upon world economic conditions will shortly receive serious consideration at the hands of international financiers.

The Farmers’ Burdens.

There is one difference between the

position of the farmer and the business man which must impress it-

self upon any who have cause to study economic questions. In a time of depression such as the present the farmer’s cards are more or less laid on the table. We know what he is receiving in return from his labours, we know approximately what his farm is costing him, and we cahnot doubt that his position is, as lie claims, made precarious by low prices. With the city trader the position is more vague, save in the case of public companies which publish their balance sheets. Tile bush ness man complains, and his complaint must be credited, that his returns have been lowered, but to what extent he alone is aware. Knowing the farmer’s position so much better, people can sympathise readily with the man on the land, and know also how he may best be assisted. But the knowledge is easier to acquire than to act upon. The Soutli-

land Provincial Executive of the Fanners’ Union recently passed a resolution drawing the attention of the Government to, a number of ways in which the farmer’s burdens might be made easier, there was nothing very revolutionary in the suggestions offered, though they certainly seemed to suggest an optimistic opinion of the ability and willingness of the Government to act in the direction of assisting farmers. For the present the proposals will probably be pigeonholed, as such things generally a ref but it would be well for the Government and the public to bear in mind that farmers are not speaking without cause, and that it may yet be necessary to take expensive steps to keep the backbone of the country from developing curvature.

Broadcasting Control.

The futuie of radio broadcasting con-

trol in New Zealand is a subject of far-reachijig interest, and the decision

of the Government is regarded as of importance by others than the 60,000 radio owners in the Dominion. The most concrete proposal is that of the present broadcasting company, which suggests that a new company should be formed to administer and extend the broadcasting services. To this proposal the radio trade takes exception, on the giound that the radio monopoly should not be left in the hands of a profitmaking concern. This argument is, however, a little difficult to follow. The fact that on the proposed controlling body listeners-in would be represented ensuie that the interests of radio owners are not prejudiced, and the desire to obtain dividends from the service should ia\e a definite advantage in encouraging the company to make every effort to satisfy the public requirements, this being the only way in which new listeners-in, and consequently additional revenue, could be obtained. The possibility against which thinking persons desire to guard broadcasting in New Zealand is that it should be allowed to become a Government service, with the creation of a fresh department to administer it. Experience has shown that departmental administration tends to become extravagant, and there is additional reason, with a utility of the nature of radio broadcasting, for ensuring against any form of political control.

India and the Congress.

The approach of the time when - the

Round Table Congress will resume conversations in London makes

in T i- r, the attitude of the All-lndia Congress particularly troubling to those who believe that great good can come of the meetings if they are conducted in a true spirit of co-operation and sincerity. The congress is a very important, unit in the Indian organisations which claim to represent the peoples of the great empire, and if it refuses to send a delegation to London, or to allow Mr Gandhi to go, as has been threatened, the deliberations of the conference will lose much of their weight. It would be unwise to accept the voice of the congress as the voice of India—on the contrary, it represents but a small section—but it is perhaps the most active Indian body, and certainly one of the best-organised. The conversations between Mr Gandhi and Lord Irwin gave reason for the hope that the congiess would at least be prepared to take a reasonable view of the Round table Conference, and that hope must remam. Unless Mr Gandhi is less sincere than he appears to be, it seems to be clear that he himself welcomes the j^ Or V l . n a ttank discussion of the difficulties of the Indian problem. He is the most powerful Indian radical, and he may yet be able to bring his rather unruly congress round to a sensible point of view.