The Industrial World

Star (Christchurch), Volume LXIV, Issue 740, 19 April 1933, Page 4

The Industrial World

CONDUCTED BY OBSERVER

This column is devoted to the news of the industrial Labour movement as represented by the secretaries of the various unions whose headquarter* are at th« Trades Hail. Trade Union News and Views. Meetings for the Coming Week. The industrial Association of Workers, Thursday, 8 p.m. The Trades and Labour Council, Saturday, 8 p.m. ! The main interest in the minds of industrial workers and of members of the Labour Party during this week is the annual conference of the Labour Party, which is being held in Auckland Among the remits to be discussed at the conference are quite a number dealing with a reorganisation of the present economic system. The inclusion of such remits is an indication that the workers are beginning to realise that lip service to the principles of Socialism is not enough to bring about a change in the economic position of the country. Reorganisation Scheme. I A remit, containing far-reaching proposals in the economic organisation of New Zealand, has been proposed by the Wellington Labour Representation Committee. It reads: “That in view of the present acute financial and industrial depression, the first order of business, after the annual reports have been dealt with, should be consideration of the question of the reorganisation of the financial and industrial system, and that a committee be set up io bring down proposals regarding: (1) unemployment and immediate adequate provision for same; (2) reorganisation and control of the financial, banking and credit system, including currency; and (3) reorganisation of industry in association with a scheme of planned economy. Should such a remit be carried, as doubtlessly it will be, it will provide the sub-committee with a task, should it prove successful, for which every thinking person will be extremely grateful. The second sub-clause, dealing with banking, currency and credit, will demand a knowledge of present methods, in addition to the provision of new schemes. This problem was tackled by’- the British Labour Party, and a pamphlet has been issued detailing the proposals. These proposals include the State ownership of the Bank of England and the joint stock banks The banking system is to be managed with a view to utilising available capital and credit resources in accordance with a Socialist plan for the development of industry and international trade and the redistribution of purchasing power; and with this same object in view’, power should be taken to nationalise or coptrol the ether finance. acceptance and banking houses. Another proposal was: "That a National Investment Board should be set up under the general direction of the appropriate Minister and working I

in close co-operation with the publiclyowned Bank of England; that with the object of preventing waste and misdirection in the use of long-term capital, the board should exercise control over ail new issues on the capital market, and its permission should be required before any such new issue could be made. That all necessary emergency powers should be taken to deal with any attempt by private persons or institutions to obstruct the Government, damage the national credit, or create a financial panic. Socialist Reconstruction. The proposals further state: "To establish control over this department of our economic life will not, by itself, bring about Socialism, nor raise the workers’ standard of life to a proper level. But such control is a necessary foundation of Socialist reconstruction, and without such control the achievement of the Labour Party’s aim will be impossible.” As previously stated, it -will be work worth while, if the subcommittee to be appointed will succeed in bringing down proposals for the reorganisation of the banking methods of this country suitable for a Socialist or planned economy. That the need of such proposals is not only envisaged by the Labour Party, but by other thinkers was made quite clear in a speech made at Palmerston North 'by Mr D. O. Williams, lecturer in economics at the Massey Agricultural College. Mr Williams was addressing a meeting of “ Rotarians ”, when he stated, inter alia: “ On- the whole I incline to the view that we have to knock out some transitional type of economy in which private enterprise will be allowed to function only within a framework of clearly defined national planning; and that the State must be ready to exercise its* coercive powers to impose both lines of action, and forms of organisation on private enterprise, when private enterprise is incompetent or unwilling to act in the country’s interest. Hitherto the State has been materialistic —it has helped and coddled. Now it must become the overseer and demand an account of the talents. The alternative to some systematic development of conscious planning is a continuation of price wars and a restoration of the very set of circumstances which has brought about the present sorry mess. Let us be frank and admit that the great and glowing experiment ot 150 3 r ears is not perfection. A world based on private gain and self-interest has achieved miracles of production only to destroy itself in abundance. It is pointless to rebuild the same edifice on the cracked foundations of the old.” Need to Study Proposals. When all is said and done, it will be useless for the Labour Party or other thinkers to suggest new forms of economic organisation unless the rank and file of the workers and trades unionists study these proposals and act according to their best judgments. Therefore it is a prime necessity for the trade unions and the branches of the Labour Party to discuss economic principles and the proposals now being made for a new economic order. With such discussion, there is no doubt whatever that a renewed interest would be taken in meetings of both groups.