The Southland Times. PUBLISHED EVERY MORNING. “Luceo Non Uro.” THURSDAY, NOVEMBER 7, 1935. VAGUE MR SAVAGE

Southland Times, Issue 22732, 7 November 1935, Page 4

The Southland Times. PUBLISHED EVERY MORNING. “Luceo Non Uro.” THURSDAY, NOVEMBER 7, 1935. VAGUE MR SAVAGE

Mr Savage invites us to consider the following proposition: Tire money necessary to complete capital works must be raised by one or more of the following means, viz., taxation, borrowing or an intelligent use of the public credit.

Mr Savage declared that further taxation was out of the question and borrowing meant a debt in perpetuity, so that the “intelligent use of public credit” is all that is left; but when we reach this point we find that Mr Savage becomes extremely vague. It may not be necessary to take .over the Associated Banks, but a money service at cost would be provided. Already we are in the midst of a crowd of terms requiring explanation. What does he mean by “intelligent use” of public credit? What does he mean by “money service”? What is meant by “at cost”? Then comes the assurance that Labour’s policy is State control of currency and credit. Under Labour the money system will operate the same as it is operated now: by people who know something of the business of banking. When Labour ruled it would be the duty of the Law Drafting Office and Treasury, just as it is now, to express, in the necessary legislation, the financial policy of the Government.

Anyone who reads this paragraph will find himself no nearer- to finding out what Mr Savage really proposes. Instead of giving some indication of the lines on which the Government’s financial scheme is to run, he wanders away in a maze of pleasant generalities and pious assurances which could be given as honestly and as fervently by a candidate who knew nothing of the financial problems and who had no practical scheme prepared. Mr Savage does not say that his idea is to put the control into the hands of the politicians. He says that the system will be operated, as it is now, by people who know something of the business of banking; but the important fact is that these -men will have to carry out the policy of the politicians, and what exactly is that policy? What is the use cf telling us that if Parliament sits it will do its best to legislate wisely, or that the Law Drafting Office will draft legislation as it does today? What the public wants to know, and what it is entitled to know is what is the policy these experts are to carry out? Mr Savage says it is to produce “money service at cost,” but what is the cost of a “money service” provided by the State? The influence of cheap money is in the direction of putting up land values, therefore, the cost of that money service is not to be measured by the rate of interest alone. Mr Savage appears before the public in the role of a mild advocate of pink radicalism, with fringes of Imperialism, but behind him stand the more assertive members and behind them lhe aim of the organization, distribution and exchange. By placing the whole of the financial structure in the hands of the politicians a step in the direction of the full nationalization is taken.

“Guaranteed prices,” with its army of inspectors, will help in the direction of bringing the nationalization of production closer to hand. I Guaranteed prices, Mr Savage says, will assist farmers when they need it most; but unless Mr Savage produces some process by which money can be made out of nothing without cost to anyone, these guaranteed prices are going to impose a load on the community at the very time it does not want it. The average price of good years will set the main, and the Government will be required to pay the difference between that and the actual ruling price. It can be done, but when Mr Savage suggests that it will cost nothing he is talking nonsense. And if there is a cost it must be borne by the people through taxation or higher exchange, but what is going to be the cost of his guaranteed prices? The price includes the introduction of some financial scheme Mr Savage does not disclose, the extension of direct Government interference in farming and its measure of control. Talk about goods at “economic prices” is all very well, but people are more interested in the manner in which the Savage plan is to work, and until that information is given they are entitled to be sceptical. Mr Coates has done a great deal with very few words; so far Mr Savage has done very little in a great many words.