END OF THE COALITION.

Star (Christchurch), Issue 12726, 22 August 1919, Page 2

END OF THE COALITION.

RESIGNATION OF SX JOSEPH WARD. STATEMENT Of FUTURE LIBERAL POLIOT, IMPORTANT NATIONALISATION PROPOSALS,

Sir Joseph "Ward said he had come to the conclusion that now the Peace Treaty was signed and the object- for which tho National Government was formed had been achieved, a tnice between the two principal parties in New Zealand was no longer necessary, and he could not now remain in the Government that had been formed for war purposes only. He had. after much thought, and with the full concurrence of his Liberal colleagues in the Cabinet, come to the derision that the continuance of an administration having naturally no real cohesion on any fixed principle, save the winning of the war, was not in the best, interests of the country. In retiring he had a duty to discharge to the people of New Zealand in his position as leader of the Liberal party. “ The world is passing through a, new era.” said Sir Joseph, “and all tho dangers and difficulties besetting old countries as a result of four and a half years of war are more or less in, evidence in New Zealand. T desire, therefore, to let the people know my mews, and it is for those who regard the wellbeing of the Dominion as paramount to individual interests to give them careful consideration.

“ It is necessary for me to say at the outset that I was unanimously reelected by tho Liberal party as its leader in 1913, and my position has since been three times confirmed by my party. After the general election of 1914 parties were eo close numerically that neither of them was strong enough to carry on tho government of the country satisfactorily during the war period. The Liberal party, from a political point of view, bad everything to gain by remaining out of the National Government, but after full consideration, although there were differences of opinion at the time, the party finally agreed unanimously to sink party an<l help to form a National Government with an equal number of Ministers representing each side of politics in the Cabinet, and with the leaders of the two parties retaining their positions as leaders in Cabinet. The great majority of the public and Press throughout the country wore favourable to and strongly supported the formation of a National Government, and I and my colleagues Have, in spite of many difficulties, been loyal to the party trace throughout. 1 have abstained both hero and abroad from taking any part in party politics, either by organisation, public speeches, interviews or otherwisePeace has been signed and the arrangement made between the two parties tor the war period must now be brought to a conclusion, and it is-only fair to those to whom I am responsible that I should relieve them by my resignation from a position that X feel it is in the best interests of the country desirable to terminate.

“In retiring, I think I should apprise the people of my views on important questions. The war has changed, the whole world, and the statesmen of today must recognise the new age. What was good enough for yesterday will not do for to-day or to-morrow. We are in a, transition period, and good government with strong administration is vital to the country’s welfare. New Zealand must be ruled constitutionally. The worker has just rights and undoubted claims to consideration, but he must not nullify these by demands which it is impossible to meet, nor must he forget his duty as a citizen of a great country. By recognising constituted authority b© can assist the State, which has already done much for him, to bring about those improved conditions that alone can keep the country safe and prosperous. As a citizen he has duties as well as rights, and ho must not exaggerate his rights by ignoring his duties. The capitalist, too, must take heed. A great duty devolves u Pp Q Ho has a right to reasonable protection, but the changes that have been brought about by the world' upheaval make it imperative in his own interests, as well as in the interests of the worker and the State itself, that be should view the altered circumstances irom a broad and proper standP olll .'-? ■ raa^e such concessions and ?, at ; rl i ICCS rim new era demands, briefly put, neither Capital nor I/abour can hope to succeed without mutual recognition, and it is the bounden dutv o both to take a fair and reasonable Tlew the reciprocal needs and responsibilities of each, and of the State as final arbiter.

STATE BANK. All banking institutions have been oi- great service to the people throughout the war period, and it should be a source of great gratification to the country as a whole that the cost of money in .New Zealand during the war has been cheaper than it has been in most other countries, not excluding the Motherland. The strain of war finance has, however, in all parts of the world shown tbs importance of governments having associated with them their own banking institutions. New Zealand, which has done so well, is no exception in tins respect, and the establishment of a State bank in this Dominion would give additional stability to the country as a whole, and fie a source of strength to the producers and traders of the Dominion. In my opinion the time has arrived when in the interests of the.-country a fully-equipped and complete State bank should be established. It would have a wonderfully steadying influence with all classes of people in the Dominion, agriculturally industrially and ■socially, and would also be a source of profit to the country and help us to meet the increased expenditure due to the war. The Bank of New Zealand is partly a State and partly a proprietary hank. It has been conductcd with good judgment and on sound Principles. It has done well for its shareholders, and has been a source of strength to the Dominion as well as to other similar institutions in thj s country , and m the departure which I now Propose for _ the establish men t of a State bank it would be fairly entitled to hare an offer made to it to become i i,ank of New Zealand. Its shareholders should, be treated with fairness, and I _ would not propose to no anything unjust or unreasonable to tncm. They, _too, should be reasonable, ■it in their wisdom they elected not to part with their interests in that institution it would then be necessary to look round elsewhere with a view .to pi ovulmg n State bank for this coun-

[ <;r - v Such institution should be placed entirely clear of political influence, and should have a permanent head with a reasonable number of experienced K)on as directors to control and administer it. The whole staff should be brought under the Government superannuation scheme and be paid fairly and fullv for their services.

‘ jt is not necessary for me to go further at the moment than to sav that 1 should in the interests of both the country and the bank itself necessarily discuss all details with the authorities, and ! am satisfied that a powerful State institution, which would prove to he to the general good of the. country, could bo established under proper safeguards without in any way interfering with the commerce, or industries of the J-Aonunion. Indeed. lam of opinion that the general financial stability of the country 7 would be greatly strengthened bv the establishment of such an institution on sound lines. The hank note tax should hp, paid as at present by the proposed State bank and br all other banking institutions in the' Dominion. T mention this bocanso with the establishment, of the State hank it might be inferred that the note, tax Tn Ulr | 11 ke hv snob institution. All flic banks should bo trontod alike in this respect. T am inclined to the opinion that it would be a useful change, under proper safe government, to allow banking institutions to have a right to substitute Government stock fox- gold ns a security for the note issue. This would he an incentive to them to invest from time to lime in Government stock, and as for many years to come we are sure to be using Government stock there is a good deal to bo said m favour of this proposal. “New Zealand will always he a great prodneing country, and it is of first importance that any difficulties in the way of getting our products to market should bo removed. In this catcgory T place that of exchange to oversea countries. During the war period rates of exchange have advanced materially. The time has arrived when in the interests of the whole community there should he a considerable reduction and I would appeal to the whole of the financial institutions to help to bring this about. This is one of the. directions m which a State hank would prove of considerable value. It should not, of course, bo part of its policy to carry on any section of business at x ,? r mtiloTlt providing a fair profit for the work clone for its clients, but it would have a. valuable influence in helping to keep rates of exchange at a level where they would not be "such heavy tax as at present upon producer' 7 and exporters. borrowing. Anything in the shape of a large borrowing policy by this country outside Now Zealand for Government purposes would, in my opinion, be very costly, and for the. next few years a sane policy of borrowing locally will Pr<dea able and will help to mainH 1 ? •”. 6W Zealand in her position of a seli-reliant country. For that reason 1 think this policy should he pursued, inere is a groat deal of money in the country, and we are mainly dependent upon the products of the soil to bring to the Dominion a large amount in excess of what we pay for imports. If the present prices for our exports continue, as they seem likely to do, for the next few years, w e should be able to obtain all that is required for Government purposes within our own shores. I am of opinion that those lending money to tho country for general purposes should, be paid oj- per cent interest and bo subject to the ordinary taxation of the country. Tho money that was needed for war purposes, anil in extraordinarily large amounts compared with what we require annuallv for genera] purposes, was, in the matter of taxation, treated differently here, as was the case in most other couni tries, but I am of opinion that there should be no exemption from taxation on money lent to the country for ,frcneral purposes.

COAL MINES. “Coa.l is the most essential commodity m the daily requirements of the people and m the transport service on land and sea, and it would be suicidal for the country if a recurrence of the troubles that have arisen from tiftie to time were allowed. The time has arrived when the whole of the coal mines of New Zealand should bo nationalised upon payment to the owners of fair and full terms in Government stock, at the rate of 5-J or 6 per cent, bearing taxation All mines taken over that wo required to operate should, where practicable, he worked under conditions similar to those of the present State coal mines. The administration and control of the mines should he placed under a good board of business men, with a Minister responsible on their behalf to Parliament. The erection of improved dwellings for miners should he part of the responsibility of the State and should he carried out with reasonable expedition. With a system free from the primary school to the of superannuation, proper housing and sanitation, there would be no excuse for strikes for the purpose of adjusting difficulties that might from time to time arise. Under these improved conditions it would be, tho duty of the minors to see that tho mines were worked to their utmost capacity and to give a fair and full return for the advantages they themselves would rpap. There should a. further supply of miners sufficient to man and work the coal mines effectively. I believe that what I am suggesting is the only effective _ way in which coal can he produced in sufficient quantity and at the lowest prices for consumers. “ With the nationalisation of the coal mines it would he necessary to have some of the colliers stationed and worked in conjunction with the mines to ensure proper and cheaper distribution of coal throughout the Dominion. TAXATION.

“ln dealing with taxation, it is, I think, fitting that I should say that the country which is able after the conclusion of a great war to keep its taxation down to the lowest limit is the one that will successfully develop and progress, and will be the country best able to maintain its industries and increase its avenues, of employment and hold its own in the fight for progress. It is not in the interests of the country that we should impose extra tax a-

don unless it is absolutely necessaryL llaTe already stated in the House of Representatives that there is no need o taxation ; on the contrarv, L™f S nG rable r l dllct ’on in the taxation brought into existence to meet the war expenditure can be made. If a readrWmenJ f br + OTsbt ' abou t in the inciof j-asatjon in relation to death dnties and higher income tax. it should be in the direction of exempting the smaler incomes from taxation and small estates from death duties and placing the amount, thus lost to the Treasury upon the large,- incomes and arger esxates regards death duties, it is prudent, however. to wait for am other sis months or so. by which time the full annual provision necessary to meeir war exponchture under S ll headings will be definitelv known Then n recasring of the whole of the finances should be effected. so as to bear equiisbir on those entitled to pay it,. The taxation of co-operative associations anrl other co-operative concerns requires adjustment. Company income tax mould he upon individual sha.renolders income, and the companies should fig t aX pd np o n tl-. e undistributed balance, further exemption in our income tax system should b e , made in reapect to wives_ and children of taxpayers. An adjustment of the tax on incomes from mortgages is desirable to give, relief to borrowersGOVERNMENT VENTURES , AYD TAXATION.

-‘‘II Government ventures, including bratc Hunk Idle Insurance. Public trust. Accident and hire insurance, Goal Aimes and Colliers should pav the same taxation as other concerns of a., similar nature. This change should, I think, bo permanently effected in connection with all Government business concerns, first because a. portion of their earnings should undoubtedly come m as general revenue of the country, and secondly because none of them has been established with the intention of curving other businesses or institutions out ot existence. Government trading departments will alwavs hare an important bearing m keeping fair rates in operation for the public, and competitive, institutions cannot hope to carry on their business .successfully unless they do so at rates as low as those of the btate Departments. This matter has given me a^ great deal of thought, cu il™ satisfied that no injury to State. Departments will be, occasioned by applying to them the system of taxation that applies to similar institutions trading in this country. REDUCTION OF INDEBTEDNESS. " The. indebtedness of New Zealand amounts to £172,778,469. This is a large sum of money for a. country with a population of a million and a quarter people, and as a matter of common prudence a. strong policy for the. reduction of indebtedness should be carried out. I have already provided sinking fund for all loans in New Zealand, but the aggregate sum now is so large that a strong policy of fnrthcr reduction, in such a manner as to occasion the least possible disturbance, to industry and to the country's credit is necessary. For this reason I would suggest that the whole of the country’s loans should bo repaid in sixty-five years, and that to enable this to bo done the whole of tho present accumulated surpluses, amounting to £15,339,561,- should he paid into a. separate sinking fund. We have fought a. great light as much for posterity as ourselves, and it seems to me unfair that tho present generation, and mainly the adults of it, should throughout their lives bear the whole burden of that repayment the war indebtedness involves. The annual amount of interest from sinking fund should be used for advances to soldiers, settlers, workers and local public bodies, and tho country’ would receive the benefit of the full amount of interest earned annually by the sinking fund if it were used by people for their financial needs. R. would, ho a sad. oven a deplorable thing, if any influences at this critical juncture in-the country’s history were exercised to utilise any portion of the present surplus for present-day expenditure. T would, with all tho earnestness in ray power, strongly urge tho country as a whole to resist anyone attempting to annex any portion of this money for any purpose excepting that of sinking fund for extinguishing the war loans so generously and wholeheartedly given hy tho'people to help us to do onr part in the great war struggle. AERIAL SERVICES. “There can be no question that aerial work is coming into general use in all the important countries in tho world, and New Zealand should not lag behind in this respect. I do not think wo should establish au aerial branch for the sole purposes of defence, hut i think a system should be brought into operation for postal and commercial purposes on a moderate scale, and that men should be trained for flying, so that if unhappily this branch, which during tho war became one of the moat important for defence purposes, should again be required in that way, we would hare a number of men in various parts of the country with training that would enable them to take up defensive duties in the air. I believe that services established for postal purposes would be of great value to the people m various parts of tie country. [ do not. suggest they should bo carried out upon anything but a moderate scale. A trial for a year or two would enable the Parliament and the people of the country to Judge as to whether their continuance was desirable. I am of opinion we should not tarry in bringing aerial services into operation. AVo must not overlook the fact that private enterprise, both in Auckland and Christchurch, has established flying schools, and these should bo used if not absorbed in connection with any scheme put into operation. EDUCATION. “The age of many school buildings throughout the country and the necessity for the erection of new ones entail the provision of a large sum for this purpose. 1 suggest the expenditure of £3,000,000 upon buildings- All building operations and repairs should He Carried opt under tho direction of the Public Works Departments The. system whereby the Government provides tho money and another body spends it is not satisfactory, and in the interests of the country, and with, a view to economical expenditure, a change in the direction outlined would be advantageous. Stale education should bo university, and kindergarten schools should ho included in the national system. All the inspectors should be appointed by the Government, and the powers of school _ committees extended. Ihere should bo an increase in the salaries of all school teachers, whether in primary or secondary schools) together with a Dominion promotion scheme. AU school books and requisites saould bq provided free. Vocation training should have consideration in the curriculum of all schools. I am m favour of evening continuation schools, technical instruction and training, and or adequate grants to technical schools. , Ge . i den Gstry and medical service snould bo provided for all school ehilThe service for this should be fairly distributed among tho medical profession. Free transit should bo provided for all pupils under sixteen rears oi age. military forces. “There should be no attempt to tmiiu up a largo permanent military force m this country. It is pot required. \ve should not, however, shut our eyes to our present and future ohngations, and I think there is much to be said for the restoration of the cadet system that formerly existed and tor the continuance of the territorial system under conditions similar to those prevailing in the Dominion prior to the war. expeditionary forges. - “ Tho war is . happily over, and sis

there is now no need for the continuance of the expeditionary forces their complete demobilisation should be carried into effect immediately. LAND SETTLEMENT. “ The land question lies at the base of the political edifice. Our available land is limited in. area- Subdivision is necessary. The soldiers must be repatriated. Land which is not producing its maximum should bo subdivided. Large land-turners must recognise that this country is destined to he one of small holdings, and they should, on fair payment for their land, cut them up and subdivide them. , If the owners of land fit for closer settlement do not subdivide effective moans of compulsion can, I know, bo found. Aggregation has been goinn- on and land is wanted for soldiers and civilians. More stringent provision against aggregation is neeftssary. All transfers and conveyances of land, whether subject to existing limitation of area or not, should be sanctioned bv land boards or other reliable tribunals, and without such sanction no _ transfer or conveyance should be valid- The remaining ordinary Crown lands must be roaded and opened for settlement at the earliest moment. It is of the greatest necessity that this countrv should increase its exports and do everything possible for the cheapening of transit and elimination of waste, and so help us to work on successfully in the new era. LAND FOR SOLDIERS’ SETTLEMENT. “ Land for soldiers is a necessity, and it has to bo remembered that the land purchased remains a permanent asset and that the interest upon the amount advanced will not in any way' hear upon the taxation of the country. Whatever money is required for this purpose should and must be provicied. This does not call for increased taxation, as the soldier settlers -provide the interest upon their loans. To prevent unnecessary delay r s and to expedite soldiers' settlement, a system of local land boards should bo established for this purpose. CIVILIAN LAND SETTLEMENT. “ While promoting land settlement for soldiers, it must not be forgotten that there is a considerable section of the civilian population, desirous of going upon the land, and the iuc-erests of these people cannot ho neglected- I would suggest that £1,000,000 per annum should be provided for civilian land settlement. I would again emphasise the fact that; this means no additional taxation, as the settler on the land pays the interest upon the money, and is no burden upon the finances of the country ; indeed, he increases production from the land and so helps to augment the amount being returned to New' Zealand from the sale abroad of its primary products. STATE ADVANCES. “It is useless placing a number of soldiers on the land unless they have the wherewithal to enable them to work their properties, and with that object in view increased limits with respect to advances to soldiers—and they would also apply to settlers and workers—should bo provided with proper provision for advances on chattel and leasehold property securities. NATIVE LANDS. “ There should be more vigorous promotion of European settlement on unoccupied Native lands, while at the same time doing what is fair a.nd just to the Natives- 1 have already emphasised the need of eliminating’ material waste in all directions. This need should have our earnest attention, and in no direction more than in that of unused or wastefully used fertile lands, whether Native or Europeon. EXPERIMENTAL FARMS. “ Further experimental farms in each island, with instructors, should be established. Students should be taken into all such farms and should have a. two or three years’ course in practical as well as theoretical farming. DAIRY INDTJS/TRY. “It will be necessary to increase largely the number of dairy instructors. This industry is growing so extensively that it should, in the general interests of the country, be assisted in every possible way. REMOVAL OF RESTRICTIONS ON TRADE. “ There should bo no restriction on trade, from New Zealand to any other country in thp world. As far . as possible, however, we should conduct qur trade within the Empire, and especially with the Motherland, and : that js the spirit which has. been predominating in this country for many years- It is a spirit that will continue, 1 hope, for all time. During tho war this has been a compulsory system to a large extent, but in peace times all compulsion should cease and this country, as was the case prior to the war, should trade freely to any part of the world that offers the best markets,'as the producers are entitled to obtain the best prices offering. Individuals and companies in New Zealand can bo dagaaesdaei to carry on their busi-

ness legitimately, and if they are freed and protected, from trusts and combines our trade should continue to develop year by year as it has done in such a wonderful way during the last quarter of a contiury. So far as inward trade is concerned, I am of opinion that we should impose additional duties against imports from countries not members of the League of Nations. Ido not mean that those countries within the league should be placed upon the same tonus as countries within the British Empire under the system of preferential trade, hut it is reasonable that conntries outside the league of Nations should not ho placed upon the same basis as those nations which have shown a desire to prevent wars in the future, and who are working for the peace of the world. PREFERENTIAL 'TRADE WITHIN BRITISH EMPIRE. “ We have long since in this country established a system of Imperial preference 115111111 the British Empire for all parts that reciprocate. This system should, in my opinion, be continued and expanded. Tip to the present there has been no definite pronouncement by Great Britain as to what her fiscal system is to bo in tho future. Tho settlement of that rests, of course, entirely with the people of Great Britain, and it would bo out of .place for mo to comment upon it, excepting to say that until we know definitely what is to be the trade system, of the Motherland, mutual trade upon a basis that helps Empire is to a considerable extent limited. T am, however, warranted in saying I do not think this country will weaken in its support of Imperial ferenceENEMY TRADE. “To prevent persons of late enemy nationality trading in the country hy holding shares in a New Zealand company, or in a company, doing business m New Zealand 1 would perpetuate the present war regulation, aud legislate to prevent them either directly or by proxy having any interest or shares in any business or company operating ip New Zealand. LOCAL* INDUSTRIES. “ The fact that 53 per cent of the population of New Zealand now resides in cities and boroughs shows tho importance of the development of secondary industries of the Dominion. A live Department 'of Industries should be established and the necessary funds provided for research regarding labour employing industries, in order to -provide employment and keep within, tho Dominion money which is now sent abroad for . goods wo are able to manufacture. Our duty is to foster and encourage, local industries. For example, protection and support should be given to wool top manufacturers to enable us to send away our wool tops instead of wool in grease. To enable fishermen who are in places remote from freezing works’to hold their fish for transport to centres money should be advanced for the erection of cool stores. This would enable the people to have a more plentiful supply of fish in good condition. For long distance train Journeys cool trucks should be provided, as is done in other countries.

STATE CONTROL OF FREEZING WORKS. “ There should lie State control by license of all freezing works and prevention of their use by trusts or combines. The prosperitv of New Zealand is due mainly to the export of onr primary products, nnd.it is necessary in the interests of producers and the country generally that our freezing works should not he financially ruined or made unprofitable by the operations bore of any powerful organisations with largo capital designed to destroy the value of our legitimate enterprises. The system of licensing all freezing works should be permanently continued, thus making it impossible for any combination or trnst to interfere with what has been a great local industry for many years. FLOUR MILLS. “ During the war tho price of the staff of bread, has increased considerably. AVith a view to reducing it the Government should purchase all working flourmills, paying full and fair values, and by amalgamation and economy in working get tho cost of flour to the bakers down to tho lowest possible figure. Tho price of bread should then be fixed by the Board of Trade, a fair percentage of profit being allowed to the bakers, with due provision for bad debts, etc. Payment for flourmills slum Id be made in Government stock at 54 or 6 per cent, subject to taxation. The Government now guarantees the price of wheat to the grower, and to be effective in cheapening the price of bread it should control the wheat when it arrives at the mill. There should be no attempt to make a profit out of this most generally used article of food.by all classes of people.

OIL PRODUCTION. “To encourage efforts to obtain oil by boring or otherwise, a subsidy should be provided at 6d per gallon"' up to £20,000 per annum for a period of ten years. IMPORTED OILS. “The present price of imported oils, compared with those ruling i n America, imposes a heavy tax on oil engine and launch owners, and. on motor users generally, the great majority of whom need their launches, engines and cars for business and not for pleasure. The percentage of users for the latter purpose, is comparatively small. I. am ofopinion; therefore, that the Board - of Trade should be ‘emnoTrered to fix the. priee of imported oils, allowing a fair profit to importers and distributors. If this is not done the State should purchase all the imported oil for the Ibonunion's requirements and sell at a moderate profit to reta.tlcra and distributors. who. should be allowed to make a fair profit. . GENERAL NATIONALISA-' TION.

’[ I am not in favour of general % nationalisation of all kinds, and conditions of things. I have named those, which I believe to be essential in tho . best interest of the country, and which!, will be no burden upon taxation. All tho existing State business departments, have been worked most successfully, and so. 1 feel confident. Trill those X. a m now recommending. Wc- aro living\irv greatly altered conditions, and great changes are necessary toprovide for a, betterment or our social, industrial and commercial life. It is the way to prevent chaos and a worse condition than, exists at present arising in the future.' It is for the people without prejudice to carefully and fully consider them. ENCOURAGEAIENT OF INCREASED PRODUCTION: *' Labour should receive a greater share of the profits of industry, thus stimulating output. There should ho , financial assistance to new industries, and those already established should bo fostered. For cheapening commodities u i? consumer, State encouragement should be given to voluntarily formed co-ofxirafcivc associations on 'the best iuiiglish models, united by the federal principle. This means a wide extension or the co-operative store system, which at e elimination of middlemen's c *v. j Pr . e s b°'dd be encouragement o the adoption of improved machinery and scientific methods with a view te increasing output, and a department of industrial and scientific research should be established. Assistance and support to the farmers engaged in the production of products from the soil should be a material part of tho country's policy. to encourage the production of beet f-ugar.in the Ikummon, a-subsidy should bo Providedat the rate of £6 'per ton up to -10,000 per annum for a period of ten yearg. . . RAILWAYS. “ After the limited construction car- : ried on during the war period, it is desirable that there should now ho a. great speeding up in the building and completion or railways. It would be a sav- ■ mg to tho country to have works iu course of construction completed as soon as possible. The loss of interest upon uncompleted lines is great, and the loss to those who require to use the lines H C rw, r ;wi 'W’ould urge the provision of for the active prosecution of railways. The South Island Trunk Kad way should be completed in two >cars, the North Island main extension in the same period, and tho Otira Tnnnol, connecting Christchurch and the West Coast, with the least possible delay. All the other lines in hand in the country should he finished within three years. This would afford great facilities to settlers and to users of the lines gencraily, and the railways would be a much more valuable asset to the country when in full earning power. As the unfortunate difficulty in regard to coal has been overcome, there should be a prompt effort made to restore the railway service to the position of efficiencv ruling prior to the war. Free travelling for children up to seven years, and half fares for children between seven and fourteen years, should he established. _ This would, in actual operation, result in no loss, or at the worst in only an infinitesimal one. and as well as being a valuable educational factor for the children, would be a great relief to : mothers of families, who are prevented ■ from travelling by their inability, on ‘ account of tho expense, to take their children with them. The former system of school excursions from town to conn- " try and vice versa should be re-estab-lished immediately the present coal trouble is over. SUBURBAN TRAINS. > “ Fast and cheap trains, should be put - on all suburban lines to enable homes . to be erected in suburbs, where the ; workers can live in comfort, and yet : have ready access to the- towns: and ■ cities.. There is unquestionably a need ■ also for the general public to have the benefit of cheap fares to and from the suburbs. Short suburban lines hhould, 1 y, as soon as possible, be electrified. The restriction - against the extension of tramways from Wellington,, to Hut* should he removed-

, LOADING THE COUNTRY. “It is not common-sense to place laree ■ numbers of people on the land tinless proper facilities are provided to enable them to reach the, centres of population arid market their goods. It must,, be remembered that many portions of the Dominion that have been under occupation for, years are still badly handicapped by the absence of proper roads and bridges. To obviate these difficulties, a more vigorous policy of roadmaking, -Ruth provision for maintenance, should be adopted, and I suggest the expenditure of £4,000,000 upon otate roads, and bridges, coverinoperiod of four years. The maiiT arterial roads should be the care of the State. In countries that I have recently visited concrete roads are being largely constructed. These roads have gone past the experimental stage, and there is no doubt that their more general adoption throughout the Dominion would be advisable. NATIONALISATION OF FERRY SERVICES.

“The time has arrived when the ferry services should form part of the railway system of the Dominion, with railway rates and freights applying to them. The necessity for good communication between the two islands makes it desirable that the system which exists in many other parts of the world should he applied here. It is evident that when the South Island trunk railway is completed a more frequent service between the two islands will be necessary, and I think that oil-burn-ing steamers should be used for ibis purpose. MOTOR LORRIES. " In connection with branch roads, it would, be advantageous to have a service by modem motor lorries. The Government could obtain these and supply them to local public bodies as required at cost price. WATER ROWER. ■ “ There should he no unnecessary delay in establishing further hydroelcctrical power schemes throughout the Dominion. I have for years been strongly in favour of such a policy. In my opinion £6,000,000 should be expended within a period of three years upon the_ principal works, which should be put in hand simultaneously and pushed on vigorously. When in London recently arranged for £2,000,000 to he raised for the Southland and Otago scheme at satisfactory rates. The loans were underwritten by an important Tendon financial firm in association with a leading bank. The loans are to be put upon the market to he subscribed by the public when the boards of the Southland and Otago Leagues have the necessary authority for this to he done. This would leave £4,000.000 out of the £6,000,000 to be. expended in carrying on the_ other works. It is certain that their earning power would be more than sufficient to pay interest and sinking fund, and no burden would he- placed upon the people by the adoption of this proposal. PARLIAMENTARY REPRESENTATION. “ The first past the post system, which permits of minority rule in the representation of the people in Parliament, he altered, and the unquestionable right of the people to select candidates by a system of. proportional representation should be recognised in city and suburban electorates as a commencement. This should be followed by the same system in other electorates when the growth of population renders it practicable. WOMEN'S rights. H The fine services rendered by women in every branch of work connected with the war have entitled them to the best consideration of the people of the Dominion, and the disparity in the treatment of women should, as far as possible, be removed. To this end they should be entitled to stand as candidates for seats in Parliament. The distinction between the rates of pay for men and those for women should he removed, and there should be equal pav for equal work. Work must he regarded more and more as a social service, and if equally efficient its value is the same whether done by a man or a woman-

COST OF LIVING. “With a, view to reducing the cost of living, the Board of Trade should be given extended powers. Legislation should be introduced rigidly controlling the profiteer and restricting all commercial trusts, rings and combines, with provision, for fine or imprisonment. There should be elimination of waste by ' bringing down the cost of distribution. Relief should be given as far as possible by the removal of duties on and taxation of all commodities, including clothing and other articles in general use. Duties on luxuries should, at the proper time, he imposed; indeed, a general revision of the Customs tariff will at no distant date be necessary. FREIGHTS. “ Freights from New Zealand abroad must, in the interests of our producers, he reduced to what in the altered conditions due to the war is reasonable, and they should not he higher than those ruling on similar produce for a distance carried from other parts of the world. The same applies to coastal freights for coal, goods ana general produce. Extended powers should be given to the Board of Trade to deal with this most important matter. W 7 hat is fair and reasonable should be done, hut nothing in the shape of extortion should be permitted. It is in the best interests of settlers, traders, merchants and the people generally that this matter should he dealt with effectively, and that legislative provision should be made to make the Board of Trade's decrees operative. POWERS OF BOARD OF TRADE. “ The Board of Trade should have power to prevent profiteering and the carrying on of trusts, rings or combines in the Dominion. Monetary penalties or imprisonment for breaches oftho law should he provided. Amongst many other duties the board should be empowered to regulate the percentage of profits on food and clothing within the Dominion, allowing fair profits to sellers and taking into account losses by bad debts, sales on credit or for cash. INDHSTRIAL PROBLEMS. “ The difficulties that have arisen in the industrial world during the last fifteen years have been principally connected with the coal miners and the .-work on harbour fronts. Speaking generally, labour in other respects throughout the Dominion has, with the assistance of the Conciliation and Arbitration Court, been upon the whole satisfactory. There must be some cause for the trouble in connection with the two branches of workers to which I have referred. Stoppage of work from time- to time affects more or less every other industry and occupation throughout the Dominion, and a rational effort should be made to find a remedy to prevent recurrences of the difficulties. It is certain that the State cannot, without ignoring the interests of the people as. a whole, continue to stand a pmsiv© spectator of these gravely wasteful industrial conflicts. Strikes at the best are not only unsatisfactory to the people who are not immediately concerned, but they involve for the men themselves, their wives and children much hardship and financial less which, in .my opinion, would with their . co-. operation be avoided. ~-■ —=-■'

LABOUR, THE HUMAN ELEMENT. “ There can he little doubt that the future welfare of this country requires the co-operation of sane labour in every branch of its occupation to ensnre good government on safe and piogressive lines in the general, interests of the community as a whole. The national and industrial estimate of the nature of labour has undergone a radical change in recent years. The conception of it merely as a commodiiby to be paid for like other commodities has almost disappeared, and the human element, the conditions, health, comfort and natural rights of the worker, have come into clearer and clearer national recognition. This is a profound and most beneficial change, as it makes for the physical, mental and moral advance of the’ great mass of our people. In the promotion of this_ change of view we must in determining wages look more and more, first to the value of the work in question as a, social service, and secondly at its hardships, discomforts and risks. A proper .appreciation and application of this principle would solve many of our present labour troubles. LAW AND ORDER.

“ Tlie Liberal Party stands for law and order. It null facilitate by the amplest legislative provision the will of the majority translating itself into law, but it will give no countenance to any movement, organisation or party which seeks to secure redress of labour grievances by direct action or any other methods outside the law. I recognise the right of every man to discuss any public question during a time of peace. It is different when war is raging- But whilst saying this, I recognise no right of any person to either incite or encourage violence, lawlessness or disorder when the freest constitutional methods are open to him.

INDUSTRIAL MACHINERY. “To ensure smoother working between employers and employees, improved industrial machinery, having closer application to the requirements of the various trades, should be adoptJ n domK I hi s, there should be no interference with the present system or industrial unions. There is a good deal to be said for the proposals contained in the Whiteley report, and it seems desirable that a similar course should be followed here to that adopted m England, namely, the setting up of a committee on relations between employers and employees to go into the whole question and report to the Government. The committee in England consisted of fifteen members, representative of various industries and one woman was upon it. I leel that a similar investigation should r UN 6 m t us country in the interests or both employers and employees. With a view to reconstruction upon a basis that would enable the employer and the worker to have better conditions than is the case now. something of the kind is very desirable, as neither this country nor any other country can hope to go bn successfully unless there is good feeling existing between those representing the respective interests, I recommend the course indicated above tor the consideration of the country. WATERSIDE WORKERS.

‘‘An effort should be made to establish permanent employment for a large proportion of waterside workers' and also to provide comfortable housing and a contributory superannuation fund for the benefit of the men. their wives and children Such a system cannot be operated effectively for casual employees, but it should he possible, with a spirit of co-operation among the snipping interests, the harbour boards and the men themselves, to have a satisfactory system established on the lines indicated. It would surely he worth while fbr all the parties interested to agree to the establishment of a. representative commission to brine about something of the kind. If this were done public opinion throughout the Dominion wunld he opposed to any stoppage in the trade of the country hy the men on'the wharves through * ant °V^ onsidera tion being shown to them fhe system of detaining shies m port unnecessarily should not be con!!f+u \i aS ex P edlt l°n when competing with other countries is absolutely essential If some scheme on the lines suggested were brought into operation the workers would have something to look forward to. which should he an !,^ ent lT e to i t , hem hc] P the country along tlie path of progressWORKERS’ ‘‘COMPENSATION

“More generous provision for workcompensation is necessary. There should be a revision and amendment of the schedule of the Workers’ Compensation Act. The State should compensation fixed hv statute when an injured worker or the dependents of a killed worker are unable to obtain it, t e mso j. ven<y Y °f the employer or through any flaws in the law. WORKERS’ HOMES.

The housing problem demands ur-gent-solution. There is a great and pressing demand by wage-earners throughout the Dominion for bettor homes. and houses must be provided at tlie lowest possible price and upon easy terms to those requiring them. In addition to the authority already provided in our statutes relating to workers dwellings and advances to workers, there snould be an amount of £4,000,000 specially provided for the erection of workers’ homes whore required, the expenditure being spread a ,P Griod of fou r years. Local public bodies should be associated with the Government in carrying out this scheme on- plans and specifications furnished by the Government. The present limit provided for the erection of those homes is too small under the altered conditions due to the %ar, and the advance, should be raised to £6OO per home. This important proposal can te carried out on safe lines. We have already lent settlers and workers £21,518,440, and this has been done most successfully and profitably to the borrowers and to tho State. SOLDIERS AND DEPENDANTS. “ New Zealand is under a big debt of gratitude to the men who fought for her during the great war. and there should bo proper recognition of the rights of discharged soldiers and soldiers dependants,. and a- generous provision regarding gratuities, allowances, etc. These important matters require to he generally recognised by the people through the Government. It is the country’s duty to help the men fairly and reasonably. They and their families have to live in the country, and whatever we finally do should be on a general basis that wo can uphold and maintain. The granting to discharged soldiers of the right to have their definitely .formulated grievances investigated in a_ court of civil jurisdiction is, in my opinion, desirable. In making this statement I am not in any way reflecting upon the military, but there can bo no doubt, looking at the question from a broad standpoint, that the system suggested would be more acceptable than the present one to the men themselves, as well as to the people of this country, for whom they have fought. MAIMED SOLDIERS. “ Special provision should be made for those soldiers who, unhappily, have been wholly or partially incapacitated as the result of their services during the war. PROSPECTING.

“A great deal of wealth has been obtained in this country from gold and other minerals, but the Dominion has hot by any means been thoroughly prospected. It would pay New Zealand to promise a sum of £20,000 per annum for the next ten years to carry out prospecting in. various parts of the country on a thoroughly systematic basis. In all probability further mineral deposits,

capable of being worked on a profitable basis, will be discovered. If so, the money expended would not be lost, as everything that is_ taken from the bowels of the earth is practically found money, and adds to the general wealth of the country. OLD AGE PENSIONS. “There is now no reason why old age pensions should not be granted irrespective of incomes or capital up to a reasonable amount. The limit should be raised so that ownership of a home or a limited income from savings should not be a bar to receiving the full pension. WIDOWS AND ORPHANS. “Better provision should be made for widows’ pensions and for cases where children are left, both parents having died and the wife having predeceased the husbandSUPERANNUATION. “ The public service superannuation scheme should be extended, giving larger benefits to widows. NATIONAL PROVIDENT FUND. “Extension of the National Provident Fund is required, making it universal in its application and ensuring larger benefits to all on a contributing basis. The payment under this scheme of £6 to mothers at maternity should be made without the restrictions at present existing. This is a wise course in order to help to increase the birth rate. PUBLIC SERVICE. “ The question of pay, privileges, etc., in the public services should come under review, proper regard being paid to the purchasing power of salaries. The pay in all branches should he such as will enable the members of the service to live in adequate comfort and make suitable provision for their old age. UNITY OF EMPIRE. “ It is impossible to over-estimate the value of the service the Motherland has throughout our existence rendered to this country, and we should do all that is possible to promote the unity of the Empire in council and defence, and the development of the Empire’s resources and improvement in social and industrial conditions.

LEAGUE OF NATIONS. “ With a view to promoting the peace of the world and preventing future wars, the League of Nations, recently agreed to in the Peace Treaty, should be supported. If the league is responsible for the prevention of only one great war in the years to come it will have fully justified its creation. NAVAL POLICY. “It would, in my opinion, be a great mistake for this country to undertake the burden of anything in tho shape of a local navy. We must,_ however, he prepared to support a suitable scheme, for our protection in the Pacific. The visit of Admiral Lord Jellicoe is important and opportune, and tho country will await with much interest his report upon this question before finally decided on any definite policy. COST TO THE COHNTEY. “ I wish to point out that of the whole of the principal proposals I am suggesting only the expenditure on soldiers for gratuities, allowances, etc., education, roads and bridges, are a direct charge on the State. The whole of the others are revenue-producing, and will more than pay their own way. They will result in increased prosperity to the country and provide work for all. Tho exceptions above-mentioned are of a nature that every right-think-ing person will recognise we must, as a matter of duty, provide, CONCLUSION.

c *'ln conclusion, the need for a Nation a' Cui’crument, created to help the country during the period of a great and unparalleled war does not now exist, nor do I think if can he carried on with advantage to the country. It is true there are difficult matters still to be dealt with, and the aftermath of war calls for a strong Government and firm administration, with definite, plain, determined views on main issues. _ The risk of division in this country is great, and presents a grave danger to the well-being of the people as a whole. There is a section of extremists whose sole object is to take anarchic charge of the country. They have, in many instances, shown that they would press, if they had the power, the abominable and disastrous doctrine of force Tmd direct action. Inconvenience and suffering caused to the general public does not concern them. _ Force, strike methods, and other similar means affecting our food and fuel supplies, including the vital necessities of the poorest and the weakest, have been their resource. These methods will not preserve a great country for the use and benefit of its people. The will of the people, expressed by constitutional means, can alone be recognised. .This is a time for the best brains and the brightest intellects of the_ country, not only inside but also outside Parliament, to cope with the manv and varied problems that have to he solved, and to help in the work 1 of government on strong, progressive lines, dealing justly with the poorest and helping them in their trials, acting fairly to the more fortunate classes and calling upon them to assist in making adequate sacrifices and in meeting the claims arising from the conditions of those not so well off as themselves. The price of food and clothing of the people is a problem of grave importance. The profiteer must be stopped from imposing unfair and" arbitrary prices on the masses of the consumers. At the same time care must be exercised so that the legitimate general trader, either wholesale or retail, is not hampered or harassed in the legitimate carrying on of ins trade. It is not in connection with the legitimate trader who is entitled to fair profits that action is necessary; it is in connection with any section that is, from motives of avarice, abusing its opportunitios and charging extortionate prices. This is what is, and has been, adding to the difficulties of the people in the altered conditions due to the war. Producers must be protected from excessive freight rates. Trade should be freed from any shackles that now impede and hamper it. Competition and a spirit of legitimate and vigorous rivalry are the surest and safest means to secure the best results for the public. Peisonal ambitions at this grave juncture in our country’s affairs should be subordinated for the common good. Ihe party who elected me as their leader will shortly have the opportunity to consider the whole situation, quite irrespective of any consideration for me, and to come to, I hope, sound conclusions calculated to promote the best interests of the country. I have no desire from personal ambitions to undertake a task heavy enough to tax tho nerve, skill and judgment of any man, however, experienced he may be. 1 should only consent to do so with the full approval and assistance of all who wish to see this country placed in a position of solid and safe progress. A leader who is endeavouring to give his best services to his country requires the full support and co-operation of all who believe in the policy he submits. New Zealand is a glorious country, a priceless heritage worth working for. Whatever assistance can be rendered should be given wholeheartedly. by all',who desire it to become still greater, and who wish it handed on to the coming generations as a constitutionally governed country, in which people of all classes and creeds can live as free citizens with their rights and privileges respected and by its laws, a country, in fact, which will be to the world. It is to the moderate section only of all classes that I feel the destinies of this country can be entrusted,' not to extremists from either side. It

is for the people to choose from all sections qf the community men of ability a™ 'ride sympathies to represent them, yujy by haring the House of Represen- 1 tatives composed of such men can the people expect to have the present difficult problems effectively dealt with. If ' the neopledonot choose well, it is useless for them to cry out in complaint or dismay after the elections, as Parliament is only what they themselves make it. NEW SITUATION. MR MASSEY INTERVIEWED. CONFIDENT OF ABILITY TO CARRY ON. [P*r Pbmb Association.] WELLINGTON, August 21. A few comments on the situation as it is at. present were made'' by the Prime Minister to-night. Asked whether he was surprised to receive news of Sir Joseph Ward’s resignation, Mr Massey said;.“l cannot say I am surprised, because when 1 was in Paris I noticed in the New Zealand papers forwarded to me that a meeting of the Liberal Party had been held 1 and that with the concurrence of their leader they had decided to dissolve the partnership and bring the Coalition Ministry to an end, but I did expect we should have had more notice than has been given. I think the dissolution of partnership should have taken place directly on our arrival in New Zealand, or it should have been held until we had got through the business of the session. We are now within seven days of the meeting of Parliament. The speech of the Governor-General has still to be drafted, the Financial Statement has shill to bo prepared, the amount of soldiers’ gratuities has still to be fixed and agreed to- In addition the Minister of Lands and his Department have made an estimate of the sum necessary to carry on the work of repatriation. This has yet to he considered by Cabinet, and later on will have to bo submitted to Parliament. Then there is the question of the reduction of taxation, which the country is looking forward to eagerly. I still hope something will he done in connection with this during the coming session. °

“In calling attention to these important matters, I should just like to say I have personally no fear for the future. I have absolute confidence in the country and absolute confidence in the good sense and intelligence and patriotism of the great majority of the people of the Dominion.

“I understand that Sir Joseph Ward has taken advantage of the opportunity to put forward, his policy. lam not going to complain. I imply ask the public to withhold their judgment until they hare had an opportunity of comparing his proposals with those which I hope to submit later, but I want to make it quite clear that I am utterly opposed to setting party against party. It is very evident that there js a section of the people in the community who are anxious to return to the old system of party shibboleths, the old had ways of seeking party advantage without regal’d to the first interests of the country. This is not a time for anything of that sort. I hope to see a strong party, whatever they may call themselves, of the very best men the community can select returned to Parliament at the coming election with one definite object of maintaining the prosperity of the Dominion, increasing the production of the country, and so enabling the people without inconvenience to meet the enormous liabilities which we have incurred by doing our share during the war period. “ One is tempted to expound in some detail the proposals which my Government will put before the country. Wo have in view definite and practical proposals for the development of the country by settlement and improved transport facilities. In our schemes of settlement we must and we will have regard first always to the claims of returned soldiers, and we hope to he able to give them good opportunities of making a success of their farming ventures. When the war broke out, on behalf of my colleagues I laid down the policy of the Government. It was that we should do bur full share in the war and keep the country prosperous. That we hav© been successful scarcely requires demonstration. It is not necessary to refer to what was done during the war, but with regard to the prosperity of the country, statistics for the last six months show that our exports have been for that period valued at over twenty-nine millions—more for six months than the total value for the preceding twelve months. _ Admitting that this was due to shipping having become more plentiful, tho fact remains that for the whole period of the wan our exports were over thirty millions for the year.” As to the future, Mr Massey was quite confident in his declaration that he expected to he able to carry on the Government. He said he could not go into details as to his intentions regarding the formation of a new Government, hut there would be a reconstruction of the Ministry in the near future

SECRET WELL KEPT. FACTORS IN DISSOLUTION OF PARTNERSHIP. [From Our Correspondent.] WELLINGTON, August 21. | _ The secret of to-night’s development in the National Government was well kept, one morning paper only publishing a hint of the possibility of the party truce ending before the session, a hint which the evening paper quite ignored, though at 5 p.m-, following the Cabinet luncheon to Lord Jellicoe, Sir Joseph Ward proceeded to Government House to hand his resignation to the Governor-General. While those in touch with Ministers realised thati the two sections in the Cabinet were definitely’ lining up it was generally expected that the session would open with the National Government on the Treasury Benches. It is understood that the financial Statement was well forward, a large amount of references to departmental matetrs being ready for the printer, while a number of Government Bills were printed, bearing the names of Ministers who, owing to to-night’s development, will not be in the Government when the House moots. The question naturally suggests itself, yyhat was the reason precipitating the dissolution of partnership only a week before the session? Two imoortant factors_ are prominent- First,' the Prime Minister’s acceptance of a cruiser from the Home authorities. This, I understand, was done without the concurrence of Sir Joseph "Ward, who knew only after the cruiser had been definitely accepted, though Mr Massey maintains that this involves no departure from the arrangement under which the warship Philomel was maintained in Now Zealand waters out of the Dominions £IOO.OOO annual naval subsidy. There is the opposite view that a modern cruiser with expensive upkeep is

a direct adoption of tlie principle of a tbcal navy. Nationalisation of the coal mines is the second big differing principle. Sir Joseph Ward favours this plan, but it is significant that Cabinet's reply to the Alliance of Labour request on this line contains no reference to such _£in important suggestion. These differences suggest that the Reform portion of the National Government was stretching the terms of the truce beyond breaking point, forcing the Liberals to refuse responsibility to meet the House with such a joint programme. FUTURE DEVELOPMENTS. So far only Sir Joseph’ \\ ard’s resignation lias been tendered,, hut I understand that the Hons W. D. S. Macy* • Russell, J. A. Hanan and f ■ Milford will resign to-day. the task before the Prime Minister is to reorganise the Ministry before the meeting of Parliament. He will consult his own part on Wednesday. The dissolution of the trnce means a reduction of the number of Ministers, it being understood that Cabinet now will revert to a peace footing, ten paid -Hinisters pins a representative of the Native race. There is a suggestion that one, ir not two. Liberal IMinisters are likely to place their services at Mr Massey’s disposal for the session, an arrangement which would materially assist the Prime Minister to carry bn during a brief session before appealing to the country. Mr Russell and Mr Hanan are mentioned in this connection, but at this stage the matter is hardly definite, and Ministers are not disposed to discuss their political future until the Prime Minister has had an opportunity of a longer consideration.

The Reform Party will frame a legislative programme and ask the House to carry essential legislation arising out of the war, such as continuation '“of the moratorium. It also has the duty of framing a scheme of war gratuities for the Expeditionary Force, which has not been put through the Cabinet under the National Government regime. Repatriation, finance, Avar loan and taxation are other big problems left for the party Cabinet which now takes control.

MR MASSEY ON THE CRISTS. VALUE OF THE NATIONAL GOVERNMENT. The Prime Minister had little time for mature consideration of the position to-night. There was but a brief interval between the announcement of the resignation and attendance at the Government House ball in honour of Admiral Jellicoe and the officers of H-M.S. New Zealand. He declined to discuss details of the situation until the party is consulted. “ Sir Joseph Ward’s resignation was not a surprise to me,” was his comment. ‘‘l knew we, were approaching a dissolution of partnership. 1 can only say that the coalition, it it may bo called that, has fulfilled its purpose. It enabled New Zealand to do its full sharein the war, which effort would not have been possible under the ordinary party system, except with a majority of something like twenty, which is not possessed by any party in the State. There is no bitterness. We part on friendly terms. fhe future, of course, has its problems as well as the past, and the problems of peace are in inany respects just as important and serious as the problems of war. 1 cannot go into detaus until I meet those members of Parliament who have been working with me during the last seven years. Though the position is serious, 1 approach it with absolute confidence in the- countvv, confidence in the good sense of the citizens, which will enable us to get successfully and satisfactorily through the very difficult period evidently in sight.”