AUCKLAND PLAN

Timaru Herald, Volume CXXXVII, Issue 19523, 24 June 1933, Page 19

AUCKLAND PLAN

LOAN FOR RECONSTRUCTION. COMMENDED BY BISHOP LISTON. By Telegraph—Tress Association AUCKLAND, June 3. “As one closely in touch with the needs and ever-growing hardships of a large section of the ordinary peop e, I feel Your Worship has rendered a distinct service to the country,” says Dr Liston, Roman Catholic Bishop of Auckland, in a letter to the Mayor, Mr G. W. Hutchison, congratulating him on raising, by means of the recent deputation to Mr Coates, "a question of first-rate importance.” “We have reached, in the third year of the depression the exhaustion point of deflation,” says Bishop Liston. "Numerous expedients have been tried, but the depression is not ending itself. Hitherto people have shown endurance and courage beyond praire, and are ready, if needs be, for greater sacrifices, but to-day a spirit of despondency prevails almost everywhere. Your Worship has asked the country to

face these realities, and boldly try another policy. The -ssue is a clear one.” Discussing tin. policy of the Government, Bishop Liston asks why it

should be necessary to b: lance the Budget year by year. If it is dangerous to leave the Budget unbalanced when prices are rising, is it not equally dangerous to seek at all costs to balance it when prices are falling. To balance the Budget sound;, well, but the requirements of (,untry vary

with peace and war booms and depressions, and the Budget should vary with them. He agrees in these circumstances “we may as well go in for a policy of borrowing—sound borrowing. Justified by the natural resources of the country, and the spirit of the people. If we are going to help ourselves to the beginnings ■' economic recovery, and not be content to wait and wait on the outside woHd, it seems to me that the only means of recreating the purchasing power of the people is through a reasonably large extension of our national credit, for useful public works, and especially for land development. Parliament can do thi3 as Your • orship has proposed, by the issue of bond-, and there is sufficient money in the country itself to buy these bonds. There would, no doubt, be disadvantages in such a large issue of bonds; but these are, it seems, to many of us in touch with the fives of people, trifling in comparison with the evil results of a policy of drift and inaction.”