VOICE OF THE PEOPLE

Taranaki Daily News, 2 April 1934, Page 7

VOICE OF THE PEOPLE

VIEWS ON CURRENT TOPICS

THE FALLACY OF RESTRICTION,

TO MR- KENAH‘S ARGUMENT (To the Editor.) Sir,—ln reply to Mr.\W.'"¥*» ittn&h allow me to remind him that it is re- • lated that the Egyptians imposed Upon the Israelites the task of making bricks Without straws. He is one of our modem reformers, who proposes togo a stage further than this. He contemplates making brides without Brick-earth in dhiOr to solve the problem of the production and distribution of wealth Without land. To solve the problem 6f the maldistribution of Wealth he seeks to restrict the production of wealth. His fallacious reasoning is due either to concentrating his attention upon money instead of whdt money will buy, 6r to regarding his energy expended in producing dairy products as ah end instead Of as a means of obtaining wealth. ■ In reference to his remarks regarding attacking the business methods of England I recommend him to advise Sir James Parr, who represents the fanners,, to cease advocating that the food and clothes my brothers and sisters eat and wear should be taxed by a system of taxation miscalled protection.-Mr. Kenah is not able to discern the cause of the farmers* troubles; therefore h 8 defcifws the Legislature to guarantee his rent The farmers are suffering from the. effects .of inflated land values, an unjust System of rating and uhhatUfal taxation Which have caused excessive shipping freights and reduced the supply of goods the farmers should get in exchange for their produce. The production of. wealth -is largely a mechanical process; It consists Of the application Of human labOuf to the eirth ot .the products derived ffdrti th& earth. Thd distribution of Wealth is a moral question, and is governed- by tnoral laWs. ft aflsWers the question, “Who ought to have what?” By all deduction the products ought to belong to him who produced them. When we honestly administer the use of earth afid its natural resources and allow no one to monopolise §ny portion of it without compensating his fellow-man by paying the fair fin-, nual rent into the public treasury, we will need no taxes oil industry, W6 Will have nO' paupers or millionaires, and We will hAvO no unemployed. Every new invention will be a blessing to labour, every, increase in production Will mean an increase in Wealth for fill. War will - cease and poverty wlil disappear. Until that is done nothing else will avail.—l am, etc-,' ■ , ’ ' W; SHANKS; • i. Tangarakau, March 24.

SAVINGS and seed corn.

(To the Editor.) . . .... Sir,—lt .has been proposed by certain monetary reformers that “hew capital developments shall be financed out of neW.crgdits created for the purpose and not out of savings.” The idea behind this proposal seems to be that savings cause’a deficiency in purchasing poWer. those' tvhd advdcate this policy. ES&ffi tp have efithely overlooked the fundamental fact that capital is wealth which, instead, of. being consumed as soon as produced, is set aside and saved in Order to assist future production. In a primitive state it is the corn saved for next sbasoii’s ‘Sowing.; If it wore all consumed 'there- could be no new; .crop. It & quite, immaterial to society- who saves ’.the .seed.' The, essential thing is that it !ttiust be saved. ; Mr. Ramsay MdcDonald in his book on socialism admits that even in a Socialist State capital rriUst be provided. : . , :The motives which induce people to save by abstaining froiri consumption are immaterial. The. important thing is that, unless it Is pilt into a stocking, the ‘amount saved ;is•• invested, v and this creates a demand for goods and labour. If individuals are not io be encouraged td save by earning interest on . investments, then ithdy will either bury their Savings, dr- fipend tho whole of th6if cbme. ‘ln eiffier case' thbro W6uld : be no seed -a&Hi savaiiaW" for' futufe ‘ produfctlpn. ■ If new capital is not provided out ,• of '. .savings, upon what are'the new credits to be based? Credits mllst 'be based -on resources. We recognise that Saving may be overdone, "But a certain amount is essential to provide the «e6d for the futuifi production.—We are, etc., N.Z. WELFARE LEAGUE.

UNDERMINING THE COALEn&N.

(To the Editor.) Sir,—th aft Auckland- newspaper there appears a statement that Mr. A, E. Davy, erstwhile Reform, • who. was allegedly responsible for the , success .Of the- .United Pdfly when the late • Sir Joseph Ward defeated Reform in 1028,-hah had a reconciliation With the Reform Patty add Will be employed for their benefit at the next election. If this report is true, it shows a singular lack Of appreciation, of thfe political position, ..When the Coalitibh .(Was formed, an honourable agreement was arrived at in the national interest whereby the United Party surrendered office and threw in its lot With Reforfti, it being understood that both .Organist’tions Would sink their identities &>r thfe time being and cease party stfif On thfe part of United, and I believe, by thfe ihajbfity of Reformers, this pact has befen loyally kept, but rumbUffe have been current for softie time, and these are partially confirmed by the statement referred to, that ft small Reform faction is €hdfeaVfluflfig to take an Unfair advantage while United activities are quiescent. If there was cause for unity at the time the Cb&lition was fdrffied, there, is ah even greater need to-day, When the disruptive elements think they can Win over the ufithinkiftg. In a time of stress there is grave danger in listening td destructive criticism and the swallowing of lavish promises by Labour and its allies, alia it behoves all who have the. real interests of the country at heart to rally to the forces of sane and sound Government. This tendency to Stif tip patty feeling is tb ba Stfdhgly deprecated, and it is to be hoped that the moderate forefe* in the community Will pull together fer thfe common good. A cleavage. under existing Conditions must be disastrous and-Will Only result ifl L&bfeuf gaining the Treasury benches.—l am, fete, COALITION. . March 27,-1934.