PROSPERITY WAVE

Taranaki Central Press, Volume IV, Issue 386, 18 March 1937, Page 5

PROSPERITY WAVE

Public Works Spending. Auckland, March 18. A warning that there was a grave danger ot a collapse o£ New Zealand's present prosperity and. that, money now being spent, on public works should be conserved so that men could be absorbed in a time of crisis was given by Mr. M. G. C. McCaul, of Wellington, president of the Associated Chambers of Commerce.

With the object of explaining to Auckland business men the thoughts running through the minds of business men iu Wellington concerning past and future Labour legislation, Mr McCaul is making a special visit to Auckland. He hopes to be able to explain on his return to Wellington the attitude of Auckland business men. In discussing present business in New Zealand, Mr. McCaul declared that the Dominion was. first and foremost, dependent on overseas trade. Farmers and city people were dependent entirely on the prosperity of New Zealand’s customers overseas, that is, upon the spending power of the working people overseas. They were the people who ate New Zealand’s butter, cheese and meat, and wore clothes made from New Zealand wool. Basis of Prosperity, “While Great Britain is spending £300,000,000 on rearmament and other large sums of housing, and private and public construction, a big proportion of that money is flowing into the hands of the workers who buy our goods,” explained Mr. McCaul. “That is the very basis of our present extraordinary prosperity. There is a grave danger of the collapse of that prosperity. Then will comes a crisis. Our policy should he guided by thoughts of meeting that crisis when it comes. "In my view, we should close down as tightly as possible on public works, with the object of conserving our finances. Farmers at present are crying out for labour, and therefore there is no necessity at the present time for large employment on public works. But when the crisis comes, it will be the duty of the Public Works Department to absorb as much labour as possible. Only works of absolute necessity should be undertaken in times of prosperity, so that in times of depression the Public Works Department could provide work for large numbers of men. That would iron out the creases between prosperity and depression.” Reference to State interference in business was made by Mr. McCaul. It was the duty of the State to govern, he said. It an individual did wrong, it was the duty of the State to punish him. If a pickle manufacturer produced and sold bad pickles to the public, it was the duty of the State to stop him and safeguard the public, but it was not the duty of the State to make pickles itself. The State should regulate trade, but not trade itself.