The Otago Witness. WITH WHICH IS INCORPORATED THE SOUTHERN MERCURY (TUESDAY, SEPTEMBER 1, 1931.) THE WEEK.

Otago Witness, Issue 4042, 1 September 1931, Page 43

The Otago Witness. WITH WHICH IS INCORPORATED THE SOUTHERN MERCURY (TUESDAY, SEPTEMBER 1, 1931.) THE WEEK.

"Nunquam aliud Datura, allud Mpieutia dixit.** -Juvenal. "Good nature and good sense must ever join."— Pops.

Political Uncertainty.

The air of uncertainty which surrounds

Parliament was not cleared by the debate on Friday, when the possi-

bilities of a postponc-

ment of the general election were discussed in vague terms. All that emerged was that the Prime Minister and the Leader of the Opposition are prepared to consider the postponement if the Economy Committee so recommends, while the Labour Leader is irrevocably opposed to this step. The public is naturally interested to know what is likely to happen, but in the meantime it is apparently not going to receive enlightenment. This much is certain, that the people desire to see a National Government formed to deal with the financial crisis, while it seems quite possible that Labour will refuse to throw aside its sectional platform in favour of nationalism. , Whether elections are held following the formation of a National Government does not appear to be of great consequence, save that a postponement would save the country expense. A postponement might also be expected to save Labour some seats, though apparently Mr Holland has not thought of that possibility. The reception of events at Home shows that the public approY’es of non-party effort at the present time, and if Labour in New Zealand goes to the country in opposition to this principle, it is likely to receive scant consideration. Minor elections in Australia have, furthermore, indicated that many people who would normally support Labour are distrustful at an exclusive, sectional platform in present conditions. Mr Holland still has time to withdraw effectively, if not gracefully, from an attitude that bodes no good for his party, and he may yet find reason to alter his views. But whether the country is particularly anxious concerning his decision is very doubtful. The prospects of forming a strong National Government are the absorbing topic at present, and they are not necessarily linked with the decisions of the Labour Partv.

Labour’s Trial.

A. most interesting page in the history

of British politics Yvas opened last week when the Yvorld was suddenly

invited to turn its eyes towards unusual coinings and goings in Downing Street and at the Palace, culminating in the sudden resignation of the Labour Government and the formation of a National Ministry. The breach in the Labour Party had been long widening into a treacherous crevasse, and the step taken by Mr MacDonald and Mr Snowden Yvas inevitable, seeing that these men have the interests of country above party at heart. To them, the greatest credit must be given for making a great sacrifice. Deliberately and sorrowfully they have turned their backs upon a powerful organisation, to the formation of which both had given the best part of their lives. It was a crisis that allowed of no rail-sitting on the part of members of the Labour Government, and the division of the ranks Yvas inevitable, and, in the case of Mr Henderson at least, illuminating. Mr Henderson knew, as everybody in the Labour. Party must know, that the economy measures proposed by the Government, and including a reduction in the million-a-week “ dole,” were urgent and necessary if Great ■Britain’s credit was to be preserved, yet he chose to ally himself with the majority which held party policy above the welfare of the State. The division of Labour on this crucial issue was a striking exposure of the extent to Yvhich extremist doctrines govern the actions of the Labour majority, causing those men who are sincere in their desire to govern fairly and Yvithout favour to

leave the organisation when a national crisis arises. It strengthened confidence in the stability of a few. individual Labourites, bpt was a clear indication that as a political organisation Labour is fundamentally selfish, stubborn, and not to be relied upon.

Sheep-farming Costs.

The address of the president of the New

Zealand Sheep Owners and Farmers’ Federation at the annual meeting

was a gloomy recapitulation of a position of which most people must by this time be aware. Mr Acland made it clear that the sheep farmer need hold no as to the cloud of depression suddenly opening to reveal a silver lining. The situation is becoming desperate, and as New Zealand has no control over the major cause of it, the fall in the price of wool in the world markets, it is necessary that the subsidiary' cause, the cost of growing and marketing the clip, must be attended to. In short, the Dominion must realise that relief can come only from within. Mr Acland enumerated the considerable reductions in costs which the sheep farmer desires, and with his contentions there can be small room for disagreement. The country is experiencing great difficulty in finding State and local body finance, and any relief allowed the sheep farmer will greatly increase the task, yet it is preferable that burdens should be inincreased, rather than that sheepmen should be forced off their holdings. The fall of the farmer would be a blow from which New Zealand could scarcely recover. Adjustments in the costs of farming labour are especially desirable. With thousands out of work it is simply not economic that primary producers should have to pay wages that cripple their activities, and this is a fact that the worker must face, realising that he will still be better off working for a small wage than having no work at all.

The Railways.

The New Zealand Railways, which in

the best of times are a costly undertaking, can be relied upon to pre-

sent, in times of financial stringency, an alarming balance sheet. The Railways Statement on operations during the past year is a sorry document, but so little' is expected of the railways now that it has passed almost without comment, and certainly it would be somewhat idle to attempt to throw blame on anyone for losses which, as the railways are at present run, are inevitable. The story is briefly told in the following comparative statistics:—

It will be remembered that in 1929 a sum of £8,100,000 was written off the railways, yet, in spite of this, interest costs, are substantially the same, and showing, of course, an inclination to reach a new high level. In the same year the railways lost certain credits allowed on isolated and branch lines, and this accounts in part for the halving of net earnings in 1930, while the depression and consequent falling off in patronage reflects the further drop in 1931. With a multiplicity of branch lines that are becoming increasingly costly, the system cannot be expected to pay its way, and the Railways Board has a hard task ahead of it. Even the introduction of fresh economics will be difficult, not because economies cannot be effected, but because of their effect in adding thousands to the unemployment relief account. One thing the board can be expected to do, and to do quickly, is to announce its intention regarding the completion of the South Island Main Trunk continuation, a work that is at present economic madness.

Radio Control.

The decision of the Government. in rc-

gard to the future control of broadcasting in New Zealand will meet

with the entire approval of the radio trade, and the possibly qualified approY’al of business organisations and listeners-in. The last-named are, of course, the people whose interests must be placed first, since it is for them that the broadcasting service is given, and they have to pay for it. A system based on that in operation in Great Britain, where the 8.8. C. exercises full authority, subject to certain obligations in respect to the State, may be expected to give satisfaction to listeners-in. There is, however, certain to be some regret in commercial circles that broadcasting is to be remoY’ed entirely from private control. So long as the making of inordinate profits was safeguarded against, there was no reason Yvhy a public company should not have been given an opportunity of operating the broadcasting service. As it is, there will exist a danger that the State may tend to exercise authority over the controlling body, and it is essential that this service should not become the business for administrative purposes of a Government department. Our experience of State-run monopolies has shown us the evils of Government ownership. It is to be hoped that the Bill which is being brought down will ensure that broadcasting is protected from State interference.

Stabilisation of Prices.

The pre-election interest of the Laboui

Party in the fortunes ot the farmer is no new thing in New Zealand,

and Mr M'Combs has chosen a politically propitious time—or doubtless assumes that he has—at which to elaborate a scheme for the stabilisation of prices for primary products. The published outline of the plan is necessarily somewhat vague as to particulars, but the principle is clearlv defined, and it is in the- principle that interest will be displayed, with an added question as to the manner in which stabilisation might make an immediate demand on the finances of the State. The principle of price stabilisation is not likely to be unreservedly welcomed by. the farming community, and certainly not by the business man. A certain amount of control of important markets is desirable, and even necessary> hut when it is extended to th a controlling of prices for primary produce other facts are liable to causo difficulties. The value of primary produce is, it is unnecessary to emphasise, not controlled in the ordinary way, but fixes itself according to demand and monetary conditions. In New Zealand, where we rely so largely for our basic revenue on primary produce, its value to a great extent sets the whole standard of living. Stabilisation or fixation of the prices at an artificial level would, therefore, affect the whole financial fabric of the country, and might create more serious conditions than it sought to avoid. The farmer, as is stressed above, needs relief, and must receive it, but stabilisation would be a dangerous instrument to use.

Net Earnings. £ Interest Charges. £ Deficit. £ 1927.. 1,943,774 2,043,433 99,659 1928.. 1,839,415 2,130,867 291.452 1929.. 1,898.592 2.331,335 432,743 1930.. 921,055 2,132,324 1.211.269 1931.. 688,727 2,255,345 1,566,618