FOOD AND FINANCE.

Sun (Christchurch), Volume I, Issue 174, 28 August 1914, Page 4

FOOD AND FINANCE.

THE LIBERALS ANNOYED. Talk of Paper Money. COMMON SENSE FROM ME FRASER Sir Joseph Ward Peevish. [From our own Parliamentary Reporter.] WELLINGTON, August 27. An Imprest Supply Bill was introduced in the House this evening. Mr J. Payne (Grey Lynn) took the opportunity of impressing upon the Government the necessity for making provision for the relief of those who might suffer from unemployment as a result of the present crisis, lie advocated a vigorous policy of developmental public works. The Government had taken action to protect banks and other financial institutions, but the real burden fell 011 the workers. As a means of raising the money for carrying out the- works he suggested the issue of State notes. It was all very'well to wave the flag and boast of contributions to patriotic funds; the Auckland Racing Club had donated £IOOO to the fund, and tUen immediately "sacked" 30 men. This contribution should be returned with the compliments of the Government, and the -Club informed j th&t the best thing it could do for the j country would be to provide employ-! ment for as many men as possible. A time of emergency had arisen, and the Government should take over the £6,000,000 of short call cash held by the Bank of New Zealand and devote it to public works. An institution which had been saved from ruin by the State should not be allowed to hold this cash in London when it was urgently needed here. A State note issue would amply cover the appropriation of this sum.

In reply to Sir Joseph Ward the Minister of Finance said that there was nothing out of the ordinary in the Bill, although there were a few alterations in the schedule which inade the amount to be appropriated £3OOO more than that in the last Imprest Supply Bill. PAPER MONEY. Mi* W. A. Veitch (Wanganui) asked the Government to take into consideration the advisability of issuing this year £2,000,000 worth of paper money. The Government could guarantee to call up 5 per cent, of it every year* and destroy it, and thus the whole amount would be wiped off in 20 years. The credit of the country did not suffer as a result of the war. The country was worth as much now as it was before the war, and the only difficulty was that the hard cash was not just at present available. on the money market. He hoped that the Government would accept his suggestion, chiefly in order that there should be no curtailment of the Advances Department. RELIEVING DISTRESS. The Hon. Mr Fraser (Minister of Public Works) said that , the Government would do all in its power to relieve any distress arising from unemployment by providing work- whereever possible. He could not, however, promise to provide work in any particular localities. There were numerous j very absurd rumours going round, and he hoped local bodies and other authorities would give no credence to thein. After a short period of excitement things would settle down again. The world's work must go on and he was sure that there would soon be a normal state of affairs. For one thing about 10,000 strong young men were leaving the country. Surely these places would have to be filled by those left ! behind them. Men were inclined to refuse to go to work in the country, but they would find that they would have to take this work. The land must be tilled, and cows must be milked. It was just as well to speak plainly on these matters. Mr J. A. Young (Waikato) dwelt on the disabilities under which many settlers are labouring through the refusal of the Advances Department to aid them. He suggested that if the Government could not find the cash it should issue some form of paper currency redeemable, say, in a year's time. He was sure the banks would honour the paper and hold it until such times as the Government could redeem it. CONTROIi OF PRICES. The Prime Minister said that the Government had nothing to ,do with the purchase of oats by the Irfiperial authorities, they hacl been purchased in London by sample from Home agents of New Zealand growers. Mr Witty: They are making a big profit. Mr Massey: That may be so, but it has nothing to do with us. Dealing with the question of the control of prices and the regulation of trade, he said that the Government had made all arrangements for setting up the board. Six commissioners had been appointed, and four of these had accepted appointment, the other two had- not yet replied, but he hoped to receive affirmative answers from them to-morrow, and then he would be able to make a statement to the House in the evening. The order of reference hail been prepared, and he ventured to say that there would be no exploitation. The commission would cover not .only foodstuffs, but every possible commodity. Mr Witty: Will it be retrospective? Mr Massey: Yes. The order of refer-

enee is strictly in accordance with th« Act. Mr Davey: Will this commissiontravel through the Dominion? Mr Massey: If need be. It-will have power to call evidence. Mr Davey: Then it will be a long time before we get the result of its deliberations. Mr Massey: That must be so; but the ; matter is not one which can be hurried. He went on to say that he did not expect any great falling-off in the export trade of the Dominion. In answer tc a question by Sir Joseph Ward, he said that the Government had bought a certain quantity of wheat in Australia, but it had bought no flour. There" was a good season ahead of the country, and he thought there would be little cheek to its prosperity. There would be ample produce and enough ships to carry it Home. All that was needed was confidence on the part of the people of the country. (Hear, hear.) GOVERNMENT ADVANCES. The Hon. J. Allen, replying to points raised, repeated assurances previously given with regard to advances to workers, local bodies, and settlers. Nothing had been done to stop advances to workers. The limit had simply been reduced. All commitments would be j met, but local authorities were asked to refrain from any but urgent- applicaI tions. The Public Works Department 'was in a position to carry on until the J end of October. If a loan could not then be raised it was proposed to make use of balances in the State Advances Department, and in the Public Trust Funds. It would easily be recognised that the importance of continuing public works was paramount. A suggestion had been made as to the issue of paper money, by the member for Grey Lynn, but such a course would be disastrous 1 in view of the fact that an unconverted loan of over three millions had to be met in December next. COMPLAINT OP RUDENESS. Sir Joseph Ward complained of the rudeness shown to him by two Ministers. If he or any member of the Opposition had acted in a similar fashion he would have felt ashamed, but the Government supporters had applauded. Was that the way to act in suclf~~a crisis? As far as he and the Liberal Party were concerned, quite irrespective of the consequences to the party, they, wanted to see the country united in the general interests of the community, and the Empire. 1 Mr C. K. Wilson. (Taumarunui): What about your organiser in my district? Sir Joseph Wrrd said no organiser connected with the Liberal Party was at present at work. Every Opposition member had shown his sincerity by not once opening his mouth on polities in any part of the country, and he himself had declined three invitations to deliver patriotic speeches in Wellington., Auckland, and Dunedin. From somjc observations "which had been made it might be supposed he took a pessimistic view of the situation. PESSIMISM. * Mr Allen : I think you have been pessi- . mistic. Sir Joseph Ward said that while hj« believed prudence and caution should- b€ exercised, he had absolute faith in the future. The Liberal side hid. not ' preached one word of pessimism,-and honestly desired to assist the Government. Sir Joseph Ward said that the Liberals were ready to put ordinary legislation through by next week and let Parliament adjourn. The Liberals wanted to be fair, but they also wanted courtesy. If the Governmemnt would take them into its confidence they would know what to do. They should be a little fair in these matters. Mr Massey: Do you suggest that you have been treated unfairly? Sir Joseph Ward: I am talking about the attitude of this side. The Government should not let the inference go out" that in such a time they were working for an advantage to its party. They should know, and the country should know, as soon as possible, when the elections were to be held. Personally i>e did not care when the elections cam because the responsibility was the Prime Minister's, but one thing was- certain—the people would never tolerate any party using this crisis, the greatest crisis the British Empire had ever passed through, for party advantage. USING A CRISIS.

The Prime Minister said that the inference was that he, as Prime .Minister would be willing to use this crisis. fo: party advantage. Sir Joseph Ward: It's no use talking like that. I did not say that, : an ] never suggested it. ! The Prime Minister: I hope the right lion, gentleman did not. ,If Sir Joseph Ward could tell him what conditions would exist on December 1 next he would be glad to,make'an announcement regarding the elections. Sir Joseph Ward knew lie could not do this. They did not know how long the war was going to last, There might be a decisive battle any day. If they had to postpone the elections it would require legislation-, serious legislation never before required in "the history of the Dominion. The Bill was put through all its stages and the House rose at 1.47 a.m.