SOCIALIST REALISATION.

Timaru Herald, Volume CXXXIV, Issue 18844, 6 April 1931, Page 4

SOCIALIST REALISATION.

LESSONS FROM ADVERSITY. In view of the way in which the New Zealand Labour Socialist Party delayed the business of the country, resisting the remedies which the majority of Parliament believe to be necessary, it is interesting to read the speech of Mr Snowden (Socialist Chancellor, of the Exchequer ( in the House of Commons, on February 11th:—He realised just as Mr Forbes has that a policy of drastic economy is essential. “I say with all the seriousness I can command, “Mr Snowden said, ’’that the national position is grave—that drastic and disagreeable measures will have to be taken if the Budget equilibrium is to be maintained, and industrial recovery is to be made. “An expenditure which may be easy and tolerable in prosperous times becomes impossible in a state of grave industrial depression. I stated in my last Budget speech that I was anxious to avoid the imposition of any further import upon industry. In view of the depression since that I feel the importance of that to-day more than I did twelve months ago. I may put it so bluntly as this. An increase of taxa * tion under present conditions—which fell on industry would be the last straw. “Schemes involving heavy expenditure, however desirable, will have to wait until prosperity returns. This is necessary—and I say this more particularly to my friends behind me— to hold the present standard of life, and no class will ultimately benefit more by present economy than the wageearners. I have been in active political life for over 40 years, and my only object has been to improve the lot of the toiling masses, that is still my aim and my object, and, if I ask for some temporary suspension, it is because I believe that it is necessary in order to make future prosperity possible. "The Budget position is serious It is known that I shall have a heavy deficit at the end of the year. No Budget iff the world could stand such an unxpected strain as that which has been placed upon it by the increase of unemployment during the last twelve months. Expenditure has increased and revenue is declining, and there is tnis fact which we sometimes ignore —productive capacity has fallen by 20 per cent. That means 20 per cent, less in those resources from which the Exchequer must draw its revenue. Capital values are falling but I can say ims—that, m spite of the depression, British credit is standing higher today than it has done during the last five years. r—. countries are watching us. xnerefore we must maintain our financial reputation, and that we can do,. Our position is fundamentally sound—and all that is required is an effort to get over the present crisis. That can be done, it will involve some temporary sacrfices from all, and the members of the Cabinet are prepared to make their substantial contribution. This is a crisis which no one party can solve, but the country and the House of Commons must realise the gravity of the position, and instead of party bickering—we must unite in a common effort tc take effective measures to overcome our temporary diffi- , culties and to restore our former prosperity.” 1 (Contributed by the N.Z. Welfare League.)