STATE NOTE ISSUE

Poverty Bay Herald, Volume LIX, Issue 17950, 30 November 1932, Page 3

STATE NOTE ISSUE

REMEDY FOR DEPRESSION LABOR PARTY’S POLICY MB. HOLLAND AT MOTUEKA (Per Press Association.) NELSON, last night. Dir. H. E. Holland, leader of the Labor Party, is at present in the northern portion of the Motueka electorate and is receiving good receptions. In the course of an address he remarked that several months back the Rt. Hon. G. W. Forbes and the lit. Hon. J. Cl. Coates had boon declaring that they had turned the corner. Now Mr. Forbes was of the opinion that the coming months would be the blackest in the history of tin; Dominion. That was a. bad advertisement for the Forbes Government.

Unemployment was the supreme problem. Men eategoried as relief workers, be said, should bo transferred to economic undertakings with a standard rate of wages. Steps should then be taken for the gradual return of all unemployed to fidl working time, which would in itself stimulate industry. There was ample room for a. highly progressive policy of closer settlement. New Zealand could carry 10,000.0C0 people. The unemployed should be engaged in bringing in at least 1,000.000 acres of Crown and other suitable land. There should also be a vigorous public works policy. Far more attention should be paid to the industries of New Zealand and the building up of local markets. Labor definitely opposed any withdrawal of subsidies to primary producers. They should seek definite agreements with Britain, and then with other countries. As matters now stood—arid Ottawa had not materially altered the position—producers had not known from year to year what their approximate income would lie. This was because their marketing arrangements were, on the whole, on an anarchical basis, without any planned system whatever. state' BANK WANTED

It was the duty of the State, said Mr. Holland, to mako provision for the issue of State bank notes, and the establishment of their validity and effective legal tender against goods produced. By increased attention to local industries, a community which had goods should have no difficulty about getting money. He doubted whether they would require any very large increase in the available curency. II it was found that the currency was insufficient for the volume of production, then it should bo. provided. What had happened now was that with the wage reductions, etc., the velocity of the circulation of money had been artificially slowed down. The restoration of the purchasing power was the only way in which a remedy could be effected. This would only come as the result of a policy of industrial rehabilitation in both the primary and the secondary fields of production. To this end Labor advocated the establishment of a State controlled bank with the sole right of note issue, for the purpose of effectively controlling both credit and currency. This was not on the lines of the bill before the House. The money created " the State would have to be safeguarded by special provisions to ensure that it would got into the hank for those who would spend it immediately for consumers’ goods, and not into the vaults j of the bank or into I lie possession of bondholders.